Our performance in 2009 - Sappi

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.