SAPPI LIMITED

SAPPI
GROUP CASH FLOW STATEMENT
for the year ended September 2010
Note 2010 2009
(US$ million)
2008
Cash retained from operating activities .................... 529 461 355
Cash generated from operations .......................... 23.1 737 432 623
—(Increase) decrease in working capital .................... 23.2 (5) 152 1
Cash generated from operating activities .................... 732 584 624
—Finance costs paid .................................. 23.3 (206) (107) (139)
—Finance revenue received .............................. 12 26 13
—Taxation paid ....................................... 23.4 (9) (5) (70)
Cash available from operating activities ..................... 529 498 428
—Dividends paid ..................................... — (37) (73)
Cash utilized in investing activities ....................... (188) (762) (494)
Investment to maintain operations ......................... (150) (143) (239)
—Replacement of non-current assets ....................... 23.5 (173) (147) (250)
—Proceeds on disposal of non-current assets ................ 23.6 21 2 7
—Decrease in other non-current assets ..................... 2 2 4
Investment to expand operations .......................... (38) (619) (255)
—Additions of non-current assets .......................... (38) (29) (255)
—Acquisition ........................................ 33 — (590) —
Cash effects of financing activities ....................... (256) 707 49
Proceeds from interest-bearing borrowings* .................. 204 3,469 2,077
Repayment of interest-bearing borrowings* ................... (444) (3,222) (2,032)
Rights issue proceeds .................................. — 575 —
Share issue costs ..................................... (3) (31) —
Costs directly attributable to the bond offerings ................ — (78) —
(Decrease) increase in bank overdrafts ...................... (13) (6) 4
Net movement in cash and cash equivalents ................ 85 406 (90)
Cash and cash equivalents at beginning of year ............... 770 274 364
Translation effects ..................................... (63) 90 —
Cash and cash equivalents at end of year .................. 23.7 792 770 274
* Includes gross cash flows relating to ongoing short term financing activities
F-6