Our performance in 2009 - Sappi

More documents

Recommendations

Info

2009 annual report 29. Share-based payments continued The following assumptions have been utilised to determine the fair value of the shares granted in the financial period in terms of the Scheme and the Plan: Issue 34 Issue 34 Issue 34 Date of grant 22 Dec 08 22 Dec 08 22 Dec 08 Type of award Normal Option Performance Performance Share Price at grant date ZAR36.7 US$7.66 US$7.66 Strike Price of share ZAR35.5 – – Vesting Period 4 years 4 years 4 years Vesting conditions Proportionately over time Market related relative to peers Cash flow return on net assets relative to peers Expected life of options (years) 8 years N/A N/A Market related vesting conditions N/A Yes No Percentage expected to vest N/A 41.5% 100% Number of shares offered 2,152,330 912,500 912,500 Volatility 37.6% 41.8% N/A Risk free discount rate 11.8% (US yield) 1.96% (US yield) Expected dividend yield 4.40% 4.24% 4.24% Expected percentage of issuance 95% 95% 95% Model used to value Binomial Modified binomial N/A Market Fair value of option ZAR11.88 ZAR20.12 ZAR19.39 Volatility has been determined with reference to the historic volatility of the Sappi share price over the expected period. Share options, Allocation shares, Restricted shares and Performance shares to executive directors, which are included in the above figures, are as follows: price 2009 2008 Number of options/ shares Number of options/ shares At beginning of year 339,000 249,000 Share options, Restricted shares and Performance shares granted for rights issue 406,800 – Share options, Restricted shares and Performance shares granted 242,000 90,000 Share options and Allocation shares declined (16,500) – Shares removed on resignation or retirement of directors (3,300) – At end of year 968,000 339,000 165 financials
166 Notes to the group annual financial statements continued 29. Share-based payments continued The following table sets forth certain information with respect to the 968,000 Share options and Performance shares granted by Sappi to executive directors: Issue date Number of options/shares** Expiry date Exercise price 28 March 2002 33,000 28 March 2010 77.97 13 February 2003 33,000 13 February 2011 62.34 30 December 2003 39,600 30 December 2011 47.08 13 December 2004 39,600 13 December 2012 46.51 13 December 2005* 52,800 13 December 2009 – 08 August 2006* 110,000 08 August 2010 – 02 July 2007* 220,000 02 July 2011 – 12 December 2007* 198,000 12 December 2011 – 22 December 2008* 242,000 13 December 2012 968,000 ** Performance shares. ** Adjusted for the share options, restricted shares and performance shares granted as a result of the rights issue. Refer to the compensation report for further information on directors’ participation in the Scheme and the Plan. No new loans have been granted to the executive directors since 28 March 2002. (ZAR)** 30. Financial instruments The group’s financial instruments consist mainly of cash and cash equivalents, accounts receivable, certain investments, accounts payable, borrowings and derivative instruments. Introduction The principal risks to which Sappi is exposed through financial instruments are: a) market risk (the risk of loss arising from adverse changes in market rates and prices), arising from: – interest rate risk – currency risk – commodity price risk b) credit risk c) liquidity risk The group’s main financial risk management objectives are to identify, measure and manage the above risks as more fully discussed under the individual risk headings below. Sappi’s Group Treasury is comprised of two components: Sappi International, located in Brussels, which manages the group’s non-South African treasury activities and, for local regulatory reasons, the operations based in Johannesburg which manage the group’s Southern African treasury activities. These two operations collaborate closely and are primarily responsible for the group’s interest rate, foreign currency, liquidity and credit risk (in so far as it relates to deposits of cash, cash equivalents and financial investments). Commodity risk and credit risk (in so far as it relates to trade receivables) are primarily managed regionally but are coordinated on a group basis. The group’s Limits of Authority framework delegates responsibility and approval authority to various officers, committees and boards based on the nature, duration and size of the various transactions entered into by, and exposures of, the group, including the exposures and transactions relating to the financial instruments and risks referred to in this note.
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 152 and 153: 22. Provisions continued September
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 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?