SAPPI LIMITED

Other operating expenses (income) are comprised of:
net asset impairment (reversal);
(profit) loss on sale and write-off of property, plant and equipment;
restructuring provisions raised (released) and closure costs; and
alternative fuel mixture tax credits in the United States.
Overview
This overview of the Group’s operating results is intended to provide context to the discussion and
analysis which follow. General trends are being highlighted here, with a detailed discussion and analysis
in separate sections below. The Group’s results reflect the Acquired Business from December 31, 2008,
the date of the closing of the Acquisition, as further specified in note 33 to our Group Annual Financial
Statements for fiscal 2010, included elsewhere in this Annual Report.
The key indicators of the Group’s operating performance are:
Key figures 2010 2009 2008
US$ million (except for
share amounts)
Sales ...................................... 6,572 5,369 5,863
Operating profit / (loss) ......................... 341 (73) 314
Special items (1) ............................... (2) 106 52
Operating profit excluding special items .............. 339 33 366
Basic earnings / (loss) / per share (US cents) ......... 13 (37) 28
(1) Please see ‘‘Item 3—Key Information—Selected Financial Data’’ for a discussion of our use of Operating profit
(loss) excluding special items and its usefulness for investors.
The following table reconciles operating profit (loss) excluding special items to net profit (loss).
2010
Year Ended
September
2009 2008
(US$ in million)
Net profit (loss) ............................................ 66 (177) 102
Taxation charge (benefit) ...................................... 20 (41) 86
Net finance costs ........................................... 255 145 126
Operating profit (loss) ....................................... 341 (73) 314
Special items—(gains) losses ................................... (2) 106 52
Operating profit (loss) excluding special items .................... 339 33 366
Plantation price fair value adjustment ............................. (31) 67 (120)
Restructuring provisions raised (released) .......................... 46 34 41
(Profit) loss on disposal of property, plant & equipment ................ (5) (1) (5)
Asset (impairment reversals) impairments .......................... (10) 79 119
Alternative fuel mixture tax credits ............................... (51) (87) —
Integration costs ............................................ — 3 —
Black Economic Empowerment transactions charge .................. 23 — —
Fire, flood, storm and related events .............................. 26 11 17
Total Special items ........................................... (2) 106 52
66