SAPPI LIMITED

espect of the amount of dividends declared by the company less certain dividends which accrue to the
company during its relevant ‘‘dividend cycle’’. STC is to be replaced with a dividend withholding tax
(‘‘DWT’’) possibly during the latter half of 2011 (date to be announced). The DWT will be imposed on the
shareholder and not on the company and it will be levied on the shareholder at a rate of 10%, subject to a
reduction in terms of an applicable Double Taxation Agreement. In contrast to STC, the new DWT is a tax
on the shareholder, although it will be collected as a withholding tax by the company paying a dividend,
which implies that Sappi Limited will incur the obligation to withhold the DWT.
Significant Changes
Except as otherwise disclosed in this Annual Report, no significant change has occurred in our
financial position since September 26, 2010.
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