Our performance in 2009 - Sappi

More documents

Recommendations

Info

22. Provisions continued September 2009 restructuring plans Sappi Fine Paper Europe 2009 annual report Kangas Mill. During the financial year ended September 2009, the company announced that it had entered into a consultation process with employees’ representatives with a view to restructuring working models. The consultation process with employee representatives came to an end in July resulting in nine employees being made redundant. After the term of notice and remodelling, employment contracts will end in April 2010. A provision of approximately US$1 million relating to retrenchment costs has been raised. Kirkniemi Mill. The mill started consultation negotiations with the employee representatives on 06 April 2009 for production and economical reasons. Negotiations came to an end on 19 May 2009 resulting in 63 employees being made redundant. The timeframe for the reductions is that 44 employees will leave by the end of calendar year 2009. The remaining 19 employees will retire or relocate by the end of calendar year 2010. A provision of approximately US$2 million has been raised. Sappi Fine Paper North America Muskegon Mill. During the financial year ended September 2009, Sappi Fine Paper North America announced the decision to permanently close the Muskegon Mill and integrate the mill’s products into the production lines at the Somerset and Cloquet Mills. A total of 190 employees were affected by the closure of the Muskegon Mill. Muskegon Mill had an annual capacity of 170,000 tons of coated fine paper. A provision of approximately US$21 million relating to restructuring charges has been raised. Sappi Southern Africa Regional Restructuring. During the financial year ended September 2009, Sappi Southern Africa announced that it had entered into a process of consultations with employees at Tugela, Ngodwana and Enstra Mills regarding proposals for cost reduction and efficiency improvement initiatives. The restructuring will affect approximately 227 employees. A total provision of approximately US$2 million was raised. September 2008 restructuring plans Sappi Fine Paper Europe Regional restructuring. The regional restructuring plan was introduced in fiscal 2006. The original number of employees expected to be impacted by this plan was 650. From a total of 650, 450 employees were expected to receive termination benefits. The remaining number of 200 employees comprised of those who were employed on a contractual basis as well as employees nearing retirement. The number of employees expected to receive termination benefits was revised from 450 to 357 at September 2007 and further revised to 347 at the end of fiscal 2008 of which 333 were already impacted. The total provision relating to the restructuring plan at the end of fiscal 2008 was approximately US$5 million. Blackburn Mill. During the financial year ended September 2008, Sappi Fine Paper Europe announced that it had entered into a consultation process with employee representatives with a view to cease production at Blackburn Mill which had an annual production capacity of 120,000 tons of graphic coated fine paper. Whilst various ancillary production and selling activities are ongoing, the mill ceased production of paper in October 2008, and on 11 November 2008, the consultation process with employee representatives came to an end resulting in 95 employees being made redundant. A further 14 employees were made redundant in 2009. A provision of US$23 million relating to severance, retrenchment and other related closure costs was raised in 2008. Maastricht Mill. During the financial year ended September 2008, Sappi Fine Paper Europe announced that it had entered into a consultation process with employee representatives with a view to shutting down one of its coated paper machines with an annual production capacity of 60,000 tons of graphic coated fine paper at Maastricht Mill. Negotiations with unions and the Works Council were concluded in October 2008. Production ceased on 19 December 2008 affecting 175 employees. A provision of US$24 million relating to severance, retrenchment and other related closure costs was raised. 147 financials
148 Notes to the group annual financial statements continued US$ million 2009 2008 2007 23. Notes to the cash flow statement 23.1 Cash generated from operations (Loss) profit for the year (177) 102 202 Adjustment for: – Depreciation 396 374 374 – Fellings 69 80 70 – Amortisation 2 – 1 – Taxation (benefit) charge (41) 86 47 – Net finance costs 145 126 134 – Asset impairments 79 119 2 – Fair value adjustment gains and growth on plantations (6) (190) (130) – Post employment benefits funding (62) (88) (101) – Other non-cash items 27 14 (14) 23.2 Movement in working capital 432 623 585 Decrease (increase) in inventories 116 (38) 44 Decrease (increase) in receivables 175 (19) (38) (Decrease) increase in payables (139) 58 54 23.3 Finance costs paid 152 1 60 Gross interest and other finance costs (198) (181) (173) Net foreign exchange gains 17 8 13 Net loss on marking to market of financial instruments (25) (7) (9) Non-cash movements included in items above 99 41 (14) 23.4 Taxation paid (107) (139) (183) Amounts unpaid at beginning of year (54) (125) (101) Translation effects (2) 7 (12) Amounts charged to profit or loss (3) (6) (38) Reversal of non-cash movements – – (1) Net amounts unpaid at end of year 54 54 125 Cash amounts paid (5) (70) (27) 23.5 Replacement of non-current assets Property, plant and equipment (146) (250) (116) Plantations (1) – – 23.6 Proceeds on disposal of non-current assets (147) (250) (116) Book value of property, plant and equipment disposed of – 2 23 Profit on disposal 2 5 27 23.7 Cash and cash equivalents 2 7 50 Cash and deposits on call 727 221 354 Money market instruments 43 53 10 770 274 364
Page 1 and 2:
SAPPI GROUP (Sappi Limited) ANNUAL
Page 3 and 4:
• the impact of future investment
Page 5 and 6:
Our reporting strategy As a leading
Page 7 and 8:
1 2 North America 2 4 1 San Francis
Page 9 and 10:
4 Our performance in 2009 Financial
Page 11 and 12:
6 Our performance against financial
Page 13 and 14:
8 Our performance against sustainab
Page 15 and 16:
10 Our performance against sustaina
Page 17 and 18:
12 Our performance against sustaina
Page 19 and 20:
14 Our sustainable business cycle T
Page 21 and 22:
16 Our products 1 2 3 Coated paper
Page 23 and 24:
Our objectives for 2010 Improve pro
Page 25 and 26:
20 Letter to shareholders continued
Page 27 and 28:
22 Letter to shareholders continued
Page 29 and 30:
24 Interview with Ralph Boëttger,
Page 31 and 32:
26 Our leadership Independent non-e
Page 33 and 34:
28 Our leadership continued Indepen
Page 35 and 36:
30 Review of operations Sappi Fine
Page 37 and 38:
32 Review of operations | Sappi Fin
Page 39 and 40:
34 Review of operations | Sappi Fin
Page 41 and 42:
36 Review of operations Sappi Fores
Page 43 and 44:
38 Review of operations | Sappi For
Page 45 and 46:
40 Value added statement for the ye
Page 47 and 48:
42 Chief financial officer’s repo
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
62 Five-year review for the year en
Page 69 and 70:
64 Share statistics at September 20
Page 72 and 73:
Risk management Global economic con
Page 74 and 75:
Risk philosophy The Sappi Limited b
Page 76 and 77:
Independence Accountability Given t
Page 78 and 79:
Fairness Social responsibility Lege
Page 80 and 81:
2009 annual report 75 Induction and
Page 82 and 83:
2009 annual report 77 employment of
Page 84 and 85:
2009 annual report 79 board to esta
Page 86 and 87:
As part of continuous improvement t
Page 88 and 89:
Compensation report In 2009, the co
Page 90 and 91:
Balance between fixed and variable
Page 92 and 93:
Executive directors (1) Details of
Page 94 and 95:
2009 annual report 89 R J Boëttger
Page 96 and 97:
2009 annual report 91 Board Committ
Page 98 and 99:
Auditor’s report Independent audi
Page 100 and 101:
Audit committee report The legal re
Page 102 and 103: Directors’ report for the year en
Page 104 and 105: Litigation We become involved from
Page 106 and 107: Group balance sheet at September 20
Page 108 and 109: Group statement of changes in equit
Page 110 and 111: Group balance sheet in Rands conven
Page 112 and 113: Notes to the group annual financial
Page 114 and 115: • Financial assets and financial
Page 116 and 117: 2.2.10 Non-current assets held for
Page 118 and 119: (iii) Dividends Dividends are recog
Page 120 and 121: uyer and seller) multiple used in o
Page 122 and 123: 2.4 Adoption of accounting standard
Page 124 and 125: Corporate and eliminations Group 20
Page 126 and 127: 2009 annual report US$ million 2009
Page 128 and 129: 6. Taxation (benefit) charge contin
Page 130 and 131: 7. Earnings per share and headline
Page 132 and 133: 2009 annual report 9. Property, pla
Page 134 and 135: US$ million 2009 annual report 2009
Page 138 and 139: 13. Joint ventures and associates*
Page 142 and 143: 16. Trade and other receivables con
Page 144 and 145: 2009 annual report 17. Ordinary sha
Page 148 and 149: 20. Interest-bearing borrowings con
Page 150 and 151: 2009 annual report 20. Interest-bea
Page 156 and 157: 27. Post-employment benefits - pens
Page 158 and 159: 27. Post-employment benefits - pens
Page 160 and 161: 2009 annual report 2009 2008 27. Po
Page 162 and 163: 2009 annual report 28. Post-employm
Page 164 and 165: 28. Post-employment benefits - othe
Page 166 and 167: 29. Share-based payments continued
Page 168 and 169: 2009 annual report 29. Share-based
Page 170 and 171: 2009 annual report 29. Share-based
Page 172 and 173: 30. Financial instruments continued
Page 178 and 179: 2009 annual report 30. Financial in
Page 194 and 195: 2009 annual report 31. Related-part
Page 196 and 197: 2009 annual report 33. Environmenta
Page 198 and 199: Company auditor’s report for the
Page 200 and 201: Condensed Sappi Limited company bal
Page 202 and 203:
2009 annual report Notes to the con
Page 204 and 205:
Glossary General definitions bleach
Page 206 and 207:
not be comparable with similarly ti
Page 208 and 209:
No issue and/or sale of these share
Page 210 and 211:
Notes Confirmation of appointment o
Page 212 and 213:
Proxy form for annual general meeti
Page 214 and 215:
forward-looking statements Certain
show all

Our performance in 2009 - Sappi

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?