SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
9. PROPERTY, PLANT AND EQUIPMENT (Continued)
The movement of property, plant and equipment is reconciled as follows:
Land and Plant and Capitalized
buildings equipment leased assets Total
(US$ million)
Net book value at September 2008 ............... 612 2,608 141 3,361
Additions .................................. 33 150 1 184
Acquisitions ................................ 169 508 73 750
Disposals ................................. (3) — (1) (4)
Transfers .................................. — 11 (11) —
Depreciation ............................... (37) (339) (20) (396)
Impairments ............................... — (79) — (79)
Translation differences ........................ 25 90 3 118
Net book value at September 2009 ............... 799 2,949 186 3,934
Additions .................................. 23 183 — 206
Acquisitions ................................ 8 5 — 13
Disposals ................................. (13) (3) — (16)
Transfers .................................. — 5 (5) —
Depreciation ............................... (41) (350) (20) (411)
Impairment reversals ......................... — 20 — 20
Translation differences ........................ (23) (59) (4) (86)
Net book value at September 2010 ............... 753 2,750 157 3,660
Details of land and buildings are available at the registered offices of the respective companies who
own the assets (refer note 24 for details of encumbrances).
Asset impairments
September 2010
Asset impairments and impairment reversals mainly comprise of:
European mechanical coated cash generating unit: Kangas Mill
The coated mechanical cash generating unit (‘‘CGU’’) was previously impaired in September 2009
for US$74 million. On 12 January 2010, Sappi ceased operations at Kangas mill which formed part of the
mechanical coated cash generating unit. Following the closure of the mill, the recoverable amount of the
remaining assets in the coated mechanical CGU were reassessed resulting in an impairment reversal of
US$18 million.
Usutu Mill—Closure and transfers from assets held for sale
At the end of January 2010, Usutu mill ceased operations. The property, plant and equipment
related to the mill had been substantially impaired in previous years and was impaired by a further
US$2 million in the current fiscal year.
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