SAPPI LIMITED

companies have to comply with domestic requirements. As a foreign private issuer, Sappi must comply
with four NYSE corporate governance rules:
Satisfy the audit committee requirements of the Securities and Exchange Commission (SEC);
Chief Executive Officer must promptly notify the NYSE in writing after any executive officer of the
listed company becomes aware of any material non-compliance with any applicable provisions of
Section 303(A) of the Sarbanes-Oxley Act of 2002;
Provide a brief description of any significant difference between its corporate governance
practices and those followed by United States companies under the NYSE listing standards; and
Maintain a publicly accessible website that includes a printable version of its audit committee
charter and the description of significant differences in corporate governance practices
mentioned above. In accordance with new NYSE rules, Sappi continues to make available on its
website its Annual Reports on Form 20-F.
As Sappi is listed on the JSE Limited in Johannesburg, Sappi is required to comply with the King
Report on Corporate Governance for South Africa. Although there are differences between the King
Report and the NYSE corporate governance rules, Sappi applies the principles of the King Report and
has voluntarily adopted corporate governance practices that do not differ in any significant ways from
the requirements of the NYSE corporate governance rules. A revised King Report (III) was issued with
effect from March 2010 and Sappi is in the process of implementing various additional requirements
from the revised report. This work will continue through fiscal 2011.
Employees
The following table sets forth the number of employees as at the close of each fiscal year ended
September.
2010 2009 2008
Sappi Fine Paper North America .......................... 2,247 2,336 2,571
Sappi Fine Paper Europe ................................ 6,659 6,710 (1) 4,896
Sappi Southern Africa .................................. 6,446 7,142 7,445
Sappi Trading ........................................ 148 154 153
Unallocated and eliminations ............................. 86 85 91
Total .............................................. 15,586 16,427 15,156
(1) Includes employees transferred from M-real as part of the Acquisition.
Sappi Fine Paper North America
Approximately 64% of employees are represented by twelve collective bargaining agreements with
seven different unions. The majority of Sappi Fine Paper North America’s hourly employees are
represented by the United Steelworkers (USW) union. The labor contracts with the USW expire in May
2012, August 2013, and August 2011, respectively for the Cloquet, Somerset and Westbrook mills.
Sappi Fine Paper North America has experienced no work stoppage in the past nineteen years and
believes that its relationship with its employees is satisfactory. In maintaining this relationship, we hope
to reach agreements with our unions as contracts expire. In the event that an agreement cannot be
reached with any of the unions and a prolonged work stoppage ensues, curtailment of output could
negatively impact our business.
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