SAPPI LIMITED

Sappi Fine Paper Europe
Key figures:
2010 2009 2008
(US$ million)
Operating (loss) profit .............................. 72 (67) (64)
(Profit) loss on disposal of property, plant & equipment ...... (2) 1 (1)
Asset (impairment reversals) impairments ................ (10) 74 78
Self insurance ................................... (22) — —
Restructuring provisions raised (released) ............... 17 1 41
Fire, flood, storm and related events ................... 21 — 1
Integration costs .................................. — 3 —
Operating profit excluding special items ............... 76 12 55
Comparing fiscal 2010 with fiscal 2009
Operating profit improved from a loss of US$ 67 million in fiscal 2009 to an operating profit of
US$ 72 million in fiscal 2010.
The operating profit for fiscal 2010 included unfavorable net special items of US$ 4 million which
included restructuring charges for the closure of the Kangas mill (US$ 17 million), costs related to fire
damage at our Stockstadt mill (US$21 million) offset by self insurance recoveries (US$22 million) and the
reversal of asset impairment charges (US$ 10 million).
Operating profit excluding special items improved to US$ 76 million in fiscal 2010 from an operating
profit excluding special items in fiscal 2009 of US$ 12 million. This significant improvement was mainly
due to improved market demand for our products which lead to increased sales volumes offset by
increases in variable costs and fixed costs.
Comparing fiscal 2009 with fiscal 2008
Operating profit decreased from a loss of US$ 64 million in fiscal 2008 to loss of US$ 67 million in
fiscal 2009.
The operating loss in fiscal 2009 included unfavorable net special items of US$ 79 million which
consisted mainly of asset impairments (US$ 74 million).
The operating profit excluding special items declined to US$ 12 million in fiscal 2009 from an
operating profit excluding special items in fiscal 2008 of US$ 55 million. This decrease was mainly due to
an 8% decrease in average selling prices and increased fixed costs, offset by increased sales volumes
and a reduction in variable cost per tonne. The increase in sales volume and fixed costs were mainly due
to the inclusion of the Acquired business in fiscal 2009.
70