FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of ~~May,~~June 2013

Commission file number: 1-14872

SAPPI LIMITED

(Translation of registrant’s name into English)

48 Ameshoff Street

Braamfontein

Johannesburg 2001

REPUBLIC OF SOUTH AFRICA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F. o

Indicate by check mark if the registrant is submitting the Form 206-F K in paper as permitted by Regulation S-T Rule 101(b) (1): o

XIndicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-~~------~~2(b) under the Securities Exchange Act of 1934.

~~Form~~Yes ~~40-F~~o No x

~~Indicate by~~If ~~check~~“Yes” ~~mark~~is ifmarked, ~~the~~indicate ~~registrant is~~below ~~submitting~~ the ~~Form~~file ~~6-K~~number assigned to the registrant in ~~paper~~connection aswith ~~permitted~~Rule 12g3-2(b): N/A

by Regulation S-T Rule 101(b) (1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted

by Regulation S-T Rule 101(b) (7):

Indicate by check mark whether by furnishing the information contained in this Form, the

registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes

-------

If “Yes” is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): n/a

INCORPORATION BY REFERENCE

Sappi Limited’s ~~report for the conformed second quarter results ended March~~announcement, ~~2013~~ furnished by the Registrant under this Form 6-K, is incorporated by reference into (i) the Registration Statements on Form S-8 of the Registrant filed December 23, 1999, ~~December15~~December 15, 2004 and February 2, 2010 in connection with The Sappi Limited Share Incentive Scheme, (ii) the Section 10(a) Prospectus relating to the offer and sale of the Registrant’s shares to Participants under The Sappi Limited Share Incentive Scheme, (iii) the Registration Statements on Form S-8 of the Registrant filed December 15, 2004 and December 21, 2005 in connection with The Sappi Limited 2004 Performance Share Incentive Plan and (iv) the Section 10(a) Prospectus relating to the offer and sale of ~~theRegistrant~~the Registrant’s shares to Participants under The Sappi Limited 2004 Performance Share Incentive Plan. This Form 6-K includes a conformed version of the earnings announcement sent by the Registrant to its shareholders. This conformed version was prepared solely for purposes of supplementing the documents referred to in clauses (i) - (iv) above.

FORWARD-LOOKING STATEMENTS

In order to utilize the ”“Safe ~~harbor~~ Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (the ”“Reform Act”), Sappi Limited (the ”“Company”) is providing the following cautionary statement. Except for historical information contained herein, statements contained in this Report on Form 6-K may constitute” “forward-looking statements” within the meaning of the Reform Act. The words ”“believe”, ”“anticipate”, ”“expect”,” “intend”, ”“estimate ”, ”“plan”, ”“assume”, ”“positioned”, ”“will”, ”“may”, ”“should”, ”“risk” and other similar expressions, which are predictions of or indicate future events and future trends, which do not relate to historical matters, identify forward-looking statements. In addition, this Report on Form 6-K may include forward-looking statements relating to ~~theCompany~~the Company’s potential exposure to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity price risk. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond the control of the Company, together with its subsidiaries (the ”“Group”), and may cause the actual results, performance or achievements of the Group to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to: the impact of the global economic downturn, the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing), adverse changes in the markets for the group’s products, the emergence of new technologies and changes in consumer trends including increased preferences for digital media, consequences of substantial leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed, changing regulatory requirements, unanticipated production disruptions (including as a result of planned or unexpected power outages), economic and political conditions in international markets, the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructurings or other strategic initiatives (including dissolving wood pulp conversion projects), and achieving expected savings and synergies, and currency fluctuations. These and other risks, uncertainties and factors are discussed in the Company’s Annual Report on Form 20-F and other filings with and submissions to the Securities and Exchange Commission, including this Report on Form 6-K. Shareholders and prospective investors are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of the submission of this Report on Form 6-K and are not intended to give any assurance as to future results. The Company undertakes no obligation to publicly update or revise any of these forward looking statements, whether to reflect new information or future events or circumstances or otherwise.

·Sappi Limited

the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including rawmaterial, energy and employee costs, and pricing); Announcement

·19 June 2013

~~the~~Sappi ~~impact on the business of the global economic downturn;~~ Limited

unanticipated production disruptions (including as a result of planned or unexpected power outages);

changes in environmental, tax and other laws and regulations;

adverse changes in the markets for the Group’s products;

the emergence of new technologies and changes in consumer trends including increase preferences for digital media;

consequences of the Group’s leverage, including as a result of adverse changes in credit markets that affect the Group’s ability to raise capital when needed;

adverse changes in the political situation and economy in the countries in which the Group operates or the effect of governmental efforts to address present or future economic or social problems;

the impact of restructurings, investments, acquisitions dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructuring or strategic initiatives (including dissolving wood pulp conversion projects), and achieving expected savings and synergies; and

currency fluctuations.

These and other risks, uncertainties and factors are discussed in the Company’s Annual Report on Form 20- F and other filings withand submissions to the Securities and Exchange Commission, including this Report on Form 6-K. Shareholders and prospective investors are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are madeas of the date of the submission of this Report on Form 6-K and are not intended to give any assurance as to future results. TheCompany undertakes no obligation to publicly update or revise any of these forward looking statements, whether to reflect new information or future events or circumstances or otherwise.

results

half-year ended

March 2013

Form S-8 version

Second Quarter

for the

2nd quarter results

Sappi works closely with customers, both direct and indirect, in over 100 countries to provide them with relevant and sustainable paper, paper-pulp and dissolving wood pulp products and related services and innovations.

Our market-leading range of paper products includes: coated fine papers used by printers, publishers and corporate end-users in the production of books, brochures, magazines, catalogues, direct mail and many other print applications; casting release papers used by suppliers to the fashion, textiles, automobile and household industries; and in our Southern African region, newsprint, uncoated graphic and business papers, premium-quality packaging papers, paper-grade pulp and dissolving wood pulp.

Our dissolving wood pulp products are used worldwide by converters to create viscose fibre, acetate tow, pharmaceutical products as well as a wide range of consumer products.

The pulp needed for our products is either produced within Sappi or bought from accredited suppliers. Across the group, Sappi is close to ‘pulp neutral’, meaning that we sell almost as much pulp as we buy.

Sales by source*

North America

Europe

Southern Africa

55%

22%

23%

Sales by product*

Coated paper

Uncoated paper

Speciality paper

Commodity paper

Dissolving wood pulp

Paper pulp

Other

65%

10%

Sales by destination*

North America

Europe

Southern Africa

Asia and other

47%

17%

12%

24%

Cover picture – Shutterstock

The picture depicts viscose clothing. Viscose clothing is made from one of our specialised cellulose products. Viscose staple fibre is a biodegradable product, with breathability and moisture absorbency properties, ideal for use in clothing.

* for the period ended March 2013

sappi 2nd quarter results

Profit for the period US$7 million (Q2 2012 US$58 million)

EPS 1 US cent (Q2 2012 11 US cents)

Operating profit US$78 million (Q2 2012 US$120 million)

Operating profit excluding special items US$40 million(Q2 2012 US$125 million)

Net finance costs of US$40 million (Q2 2012 US$51 million)

Interest-bearing borrowings (including bank overdrafts) less cash and cash equivalents (‘net debt’) US$2,152 million (Q2 2012 US$2,133 million)

Financial summary for the quarter

Quarter ended

Half-year ended

Mar 2013 Mar 2012 Dec 2012 Mar 2013 Mar 2012

Key figures: (US$ million)Sales

1,503

1,633

1,475

2,978

3,218

Operating profit

120

148

227

Special items – (gains) losses

(1)

(38)

(35)

(2)

Operating profit excluding special items

(2)

125

113

225

EBITDA excluding special items

(2)

128

217

162

290

411

Profit for the period

103

Basic earnings per share (US cents)

Key ratios: (%)Operating profit to sales

5.2

7.4

4.8

5.0

7.1

Operating profit excluding special items to sales

2.7

7.7

5.0

3.8

7.0

EBITDA excluding special items to sales

8.5

13.3

11.0

9.7

12.8

Net asset value per share (US cents)

277

315

290

277

315

(1) Refer to note 8 to the group results for details on special items.

(2) Refer to note 8 to the group results for the reconciliation of EBITDA excluding special items and operating profit excluding

special items to segment operating profit, and profit for the period.

Commentary on the quarter

Market conditions for our graphic paper products remained challenging, particularly in Europe where we experienced further deterioration across all graphic paper grades. For our Specialised Cellulose and speciality paper businesses, conditions remained good.

The US$78 million operating profit generated by the group was adversely impacted by the weak performance of the European business. Paper volumes and prices in this business were lower, whilst input costs were higher compared to the corresponding quarter last year. We were unable to fully implement the January price increases during the quarter.

The second-quarter results were also impacted by major special items including a credit of US$96 million related to the revaluation of the Southern African plantations, and asset impairment charges of US$47 million primarily in the Southern African paper and paper packaging business.

The Southern African business performed reasonably well but was, as expected, negatively impacted by the planned extended shut at the Ngodwana Mill as a result of the conversion of the pulp mill to dissolving wood pulp, as well as the relatively weak local demand for paper products. Dissolving wood pulp sales volumes from the Saiccor Mill remain limited only by our production capacity. Rising NBSK pulp prices, to which our dissolving wood pulp sales are linked, and a weaker Rand exchange rate contributed to the strong performance of Saiccor.

The North American business continued its good performance with strong paper sales volumes offsetting both weaker paper sales prices and the decline in paper pulp sales as the Cloquet Mill prepares for the conversion of the pulp mill from paper pulp to dissolving wood pulp.

Net finance costs for the quarter of US$40 million are US$11 million below that of the equivalent quarter last year as a result of the refinancing of higher cost debt in the past year.

The two major dissolving wood pulp projects at Ngodwana and Cloquet Mills progressed according to plan during the quarter and remain on schedule to start up in our third quarter.

Cash flow and debt

Net cash utilised in operating and investing activities for the quarter was US$99 million, compared to net cash generated of US$91 million in the equivalent quarter last year. This cash utilisation was mainly as a result of lower profits from operations and capital expenditure, which increased to US$179 million during the quarter from the US$59 million in the equivalent quarter last year. This increased capital expenditure relates primarily to the strategic investments in expanding our dissolving wood pulp capacity.

Net debt of US$2,152 million increased as expected when compared to both the equivalent quarter last year (US$2,133 million) and the prior quarter (US$2,095 million), largely as a result of the increased capital expenditure during the quarter.

After the end of the quarter, a new South African bond of US$162 million (ZAR1.5 billion) was raised in three tranches comprising a three-year tranche of US$28 million (ZAR255 million), a five-year tranche of US$54 million (ZAR500 million) and a seven-year tranche of US$81 million (ZAR745 million) at a blended interest rate of approximately 7.6% after swapping all the notes to a fixed rate. The proceeds of this bond will be used to repay a US$108 million (ZAR1.0 billion) bond due in June 2013 and to partially fund the Ngodwana conversion project.

At quarter-end, liquidity remained strong with cash and cash equivalents of US$398 million and US$509 million available from the undrawn committed revolving credit facilities in Europe and South Africa.

sappi 2nd quarter results

Operating Review for the Quarter

Europe

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Dec 2012

US$ million

Quarter

ended

Sept 2012

US$ million

Quarter

ended

Jun 2012

US$ million

Quarter

ended

Mar 2012

US$ million

Sales

824

799

826

795

883

Operating (loss) profit

(3)

Operating (loss) profit to sales (%)

(0.4)

2.3

10.5

0.5

6.0

Special items – losses (gains)

(42)

(4)

Operating (loss) profit excluding special items

(2)

Operating (loss) profit excluding special items to sales (%)

(0.2)

2.6

5.4

1.3

5.5

The European business experienced very weak market conditions during the quarter and, despite the significant cost reductions implemented over the past year, the performance of the business was substantially weaker than a year ago.

In comparison to the equivalent quarter last year, the business experienced both lower sales volumes and lower prices for graphic papers. Compared to the prior quarter the business experienced the usual seasonal increase in graphic paper sales volumes, however average coated paper prices were 2 to 3% lower.

Increased variable costs, particularly hardwood pulp, energy and delivery costs placed further pressure on margins, leading to an operating loss for the business.

The coated specialities business had another good quarter, with volumes and prices up both quarter-on- quarter and year-on-year.

North America

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Dec 2012

US$ million

Quarter

ended

Sept 2012

US$ million

Quarter

ended

Jun 2012

US$ million

Quarter

ended

Mar 2012

US$ million

Sales

341

346

377

360

349

Operating profit

Operating profit to sales (%)

7.6

4.6

10.6

3.6

6.9

Special items – (gains) losses

(5)

–

Operating profit excluding special items

Operating profit excluding special items to sales (%)

6.2

5.2

11.1

5.0

6.9

The North American business achieved strong coated paper sales volumes, an increase of 6% over the equivalent quarter last year and 2% higher than the prior quarter; however, prices were lower in a competitive market.

The specialty paper business was down slightly compared to last year due to lower volume early in the quarter before a strong rebound in March. Performance was improved compared to the prior quarter as the market continues to recover, particularly in China.

Pulp sales volumes were wound down and inventory was built to supply the Cloquet paper machines ahead of the planned April shut to convert the Cloquet pulp mill to dissolving wood pulp. Dissolving wood pulp sales are scheduled to start in June 2013.

Variable costs were lower compared to both the prior quarter and the equivalent quarter last year, driven principally by improved operational efficiency as well as generally lower input prices.

sappi 2nd quarter results

Sappi Southern Africa

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Dec 2012

US$ million

Quarter

ended

Sept 2012

US$ million

Quarter

ended

Jun 2012

US$ million

Quarter

ended

Mar 2012

US$ million

Sales

338

330

382

389

401

Operating profit

Operating profit to sales (%)

18.3

10.0

7.9

4.1

11.0

Special items – (gains) losses

(42)

(2)

Operating profit excluding special items

Operating profit excluding special items to sales (%)

5.9

9.4

8.6

8.0

13.2

The Southern African Specialised Cellulose business continued its strong performance in the quarter. Sales volumes for the quarter were 184kt, an improvement over the prior quarter and equal to the sales in the equivalent quarter last year. NBSK dollar pulp prices, to which our dissolving wood pulp prices are linked, have increased for the last six months, though remained on average lower in this quarter than in the equivalent quarter last year. The weaker Rand/Dollar exchange rate more than offset this weakness however, resulting in an improved performance compared to both the prior quarter and the equivalent quarter last year.

The domestic paper packaging market in South Africa was generally weak and increased export sales were only able to partially offset the local market conditions. The performance of the paper and paper packaging business was also negatively impacted by US$18 million due to the extended maintenance shut at the Ngodwana Mill as a result of the conversion project at that mill.

Variable costs were slightly up year-on-year, primarily due to increased purchased wood and pulp costs, both impacted by the weaker Rand/Dollar exchange rate.

Special items for the quarter included a plantation price fair value adjustment of US$96 million largely as a result of the revaluation of the softwood plantation assets that previously supplied the Ngodwana softwood pulp line. As a result of the conversion of the pulp mill to hardwood dissolving wood pulp, this softwood resource is now available to sell as saw logs which earn a price premium to pulp logs. Various assets at the Tugela and Stanger Mills were impaired and a charge of US$52 million was booked in the quarter. These charges relate to the ongoing optimisation process in the Southern African paper and paper packaging business.

Directorate

During the quarter we announced that following the retirement in December 2012 of Professor Meyer Feldberg and in line with the Sappi board’s succession planning, Mr Robert (Bob) J DeKoch joined the board as an independent non-executive director as from 01 March 2013.

Outlook

Market conditions for our paper businesses, particularly in Europe are expected to be weaker than previously envisaged. Demand and pricing remain under pressure and input costs, particularly pulp, are likely to remain high. The announced January price increases for coated woodfree paper were only marginally successful, and further price increases were announced during the quarter for implementation in April. These increases, to date, have not been sufficient to restore margins given rising input costs. Despite the interventions and major cost reductions that have taken place, we expect the European business to only achieve a breakeven operating profit excluding special items for the full year.

This performance necessitates further action and we are evaluating a number of options that could result in capacity and cost reductions in our European business. Further measures are also being implemented in the Southern African business. The Specialised Cellulose and North American businesses continue to perform according to plan.

Notwithstanding the weak European performance, and the impact of the commissioning and start-up of the two major dissolving wood pulp projects, we expect that the group will at worst breakeven at the profit for the period excluding special items level for the full year. We expect net debt to peak at approximately US$2.4 billion in the third quarter and thereafter to decrease to approximately US$2.2 billion by the end of the financial year.

The Ngodwana and Cloquet Mills both successfully completed their major shuts relating to the Specialised Cellulose expansion projects during March and April. Dissolving wood pulp production is expected to commence at both plants before the end of June, with paper pulp being produced for internal use in the interim.

Despite the generally tough market conditions and the once-off impact of our major transitionary projects on the current year performance, our actions and investments will position the group well for improved performance from 2014 onwards.

On behalf of the board

R J Boëttger

S R Binnie

Director Director

09 May 2013

sappi 2nd quarter results

Condensed group income statement

Note

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Sales

1,503

1,633

2,978

3,218

Cost of sales

1,272

1,408

2,573

2,785

Gross profit

231

225

405

433

Selling, general and administrative expenses

100

107

195

212

Other operating expenses (income)

(2)

(6)

Share of profit from associates and joint ventures

(2)

–

(3)

–

Operating profit

120

148

227

Net finance costs

105

Net interest expense

109

Net foreign exchange gain

(1)

–

(2)

Net fair value gain on financial instruments

–

(1)

–

(2)

Profit before taxation

122

Taxation

Current

–

Deferred

Profit for the period

103

Basic earnings per share (US cents)

Weighted average number of shares in issue (millions)

521.5

520.8

521.2

520.7

Diluted earnings per share(US cents)

Weighted average number of shares on fully diluted basis (millions)

523.8

525.0

523.2

524.7

Condensed group statement of comprehensive income

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Profit for the period

103

Other comprehensive (loss) income, net of tax

(79)

(112)

Exchange differences on translation of foreign operations

(84)

(108)

Movements in hedging reserves

(5)

(9)

Deferred tax effect of above items

Total comprehensive (loss) income for the period

(72)

122

(88)

156

Condensed group balance sheet

Mar 2013

US$ million

Sept 2012

US$ million

ASSETS

Non-current assets

3,950

3,990

Property, plant and equipment

3,102

3,157

Plantations

607

555

Deferred taxation

118

154

Other non-current assets

123

124

Current assets

1,903

2,178

Inventories

785

726

Trade and other receivables

720

807

Cash and cash equivalents

398

645

Total assets

5,853

6,168

EQUITY AND LIABILITIES

Shareholders’ equity

Ordinary shareholders’ interest

1,443

1,525

Non-current liabilities

3,170

3,328

Interest-bearing borrowings

2,243

2,358

Deferred taxation

297

319

Other non-current liabilities

630

651

Current liabilities

1,240

1,315

Interest-bearing borrowings

300

261

Bank overdraft

Other current liabilities

919

1,023

Taxation payable

Total equity and liabilities

5,853

6,168

Number of shares in issue at balance sheet date (millions)

521.5

520.8

sappi 2nd quarter results

Condensed group statement of cash flows

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Profit for the period

103

Adjustment for:

Depreciation, fellings and amortisation

104

112

210

225

Taxation

Net finance costs

105

Defined post-employment benefits paid

(17)

(12)

(32)

(23)

Plantation fair value adjustments

(115)

(15)

(141)

(39)

Impairments of assets

–

Net restructuring provisions

Other non-cash items

Cash generated from operations

115

214

265

409

Movement in working capital

(6)

(24)

(136)

(190)

Net finance costs paid

(28)

(37)

(87)

(101)

Taxation paid

(3)

(5)

(13)

(10)

Cash generated from operating activities

148

108

Cash utilised in investing activities

(177)

(57)

(230)

(128)

Capital expenditure

(179)

(59)

(275)

(134)

Proceeds on disposal of non-current assets

Other movements

–

(1)

Net cash (utilised) generated from operating and investing activities

(99)

(201)

(20)

Cash effects of financing activities

(57)

(35)

(174)

Net movement in cash and cash equivalents

(88)

(236)

(194)

Condensed group statement of changes in equity

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Balance – beginning of period

1,525

1,478

Total comprehensive (loss) income for the period

(88)

156

Transfers from the share purchase trust

Transfers of vested share options

(3)

(2)

Share-based payment reserve

Balance – end of period

1,443

1,642

Notes to the condensed group results

1. Basis of preparation

The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the requirements of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial statements are consistent with those applied in the previous annual financial statements.

The preparation of this condensed consolidated interim financial information was supervised by the Chief Financial Officer, S R Binnie CA(SA).

The results are unaudited.

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Operating profit

Included in operating profit are the following non-cash items:

Depreciation and amortisation

177

186

Fair value adjustment on plantations (included in cost of sales)

Changes in volume

Fellings

Growth

(19)

(22)

(37)

(43)

(3)

(2)

(4)

Plantation price fair value adjustment

(96)

(104)

(99)

(108)

–

Included in other operating expenses (income) are the following:

Impairments of assets

–

Profit on disposal of property, plant and equipment

(1)

(4)

(1)

(9)

Net restructuring provisions

Black Economic Empowerment charge

sappi 2nd quarter results

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

Headline earnings per share

Headline earnings per share (US cents)

Weighted average number of shares in issue (millions)

521.5

520.8

521.2

520.7

Diluted headline earnings per share (US cents)

Weighted average number of shares on fully diluted basis (millions)

523.8

525.0

523.2

524.7

Calculation of headline earnings

Profit for the period

103

Impairments of assets

–

Profit on disposal of property, plant and equipment

(1)

(4)

(1)

(9)

Tax effect of above items

(16)

–

(16)

–

Headline earnings

Mar 2013

US$ million

Sept 2012

US$ million

Capital commitments

Contracted

194

267

Approved but not contracted

170

244

364

511

Contingent liabilities

Guarantees and suretyships

Other contingent liabilities

6. Material balance sheet movements

Since the 2012 financial year-end, the period end ZAR rate has weakened by approximately 11% to the US Dollar, the group’s presentation currency, resulting in a similar decrease on translation of the group’s ZAR functional currency assets and liabilities to US Dollar.

Property, plant and equipmentAs a result of continuing difficult market conditions, Sappi Southern Africa (‘SSA’) impaired plant and equipment at its Tugela and Stanger Mills to the value of US$52 million (ZAR454 million). In addition, there was a recovery in Sappi Fine Paper Europe of US$9 million (€7 million) through the sale of certain assets that had previously been impaired as well as further asset impairments of US$4 million (€3 million).

Deferred taxation assetsDeferred tax assets of US$24 million (€18 million) were reversed within the Sappi Fine Paper Europe region as they were no longer deemed recoverable.

PlantationsDue to the Ngodwana dissolving wood pulp conversion project and the closure of the Kraft Continuous Digester at Tugela, a certain portion of SSA’s softwood plantations that were previously utilised in the paper pulp production will now be sold to the local saw log markets. Consequently, SSA’s plantations were revalued resulting in a favourable price fair value adjustment of US$98 million (ZAR863 million).

Inventories, trade and other receivables and other current liabilitiesThe group increased its inventory levels in anticipation of the dissolving wood pulp conversion projects. In additions, inventory increased as a result of lower than expected sales of commodity paper in SSA. The decrease in trade and other receivables and other current liabilities is due to seasonality and the receipt of US$42 million on the sale of the previously equity accounted 34% shareholding in Jiangxi Chenming Paper Company.

Cash and cash equivalents and interest-bearing borrowingsCash and cash equivalents decreased largely due to the capital expenditure outflows of US$275 million which mostly relates to the dissolving wood pulp conversion projects. In addition, the remaining stub of the group’s senior secured notes due 2014 of US$42 million (€31 million) as well as the group’s private placement bonds in South Africa amounting to US$41 million (ZAR382 million) were repaid. These outflows were partially offset by the issuance of commercial paper of US$43 million (ZAR400 million) by SSA as well as a draw-down from the South African revolving credit facility of US$49 million (ZAR450 million), both of which were repaid in April 2013.

7. Post balance sheet events

In April 2013, SSA placed a public bond offering of US$162 million (ZAR1.5 billion), the proceeds of which will be used to refinance the US$108 million (ZAR1.0 billion) public bond maturing in June 2013 and to partially fund the Ngodwana conversion project. The bond was placed in tranches which comprised 3-year floating rate notes of US$28 million (ZAR255 million), 5-year floating rate notes of US$54 million (ZAR500 million) and 7-year fixed rate notes of US$81 million (ZAR745 million) which were placed at spreads of 123 basis points and 150 basis points over the Johannesburg Inter-bank Agreed Rate (‘JIBAR’) and at 183 basis points over the yield curve for the 7-year fixed rate notes. The floating rate notes were swapped into fixed rates of 6.74% and 7.46% respectively.

8. Segment information

Quarter

ended

Mar 2013

Metric tons

(000’s)

Quarter

ended

Mar 2012

Metric tons

(000’s)

Half-year

ended

Mar 2013

Metric tons

(000’s)

Half-year

ended

Mar 2012

Metric tons

(000’s)

Sales volume

Sappi Fine Paper North America

332

341

666

680

Sappi Fine Paper Europe

882

919

1,731

1,768

Sappi Southern Africa –

Pulp and paper

387

418

767

818

Forestry

295

579

536

Total

1,896

1,973

3,743

3,802

sappi 2nd quarter results

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

SalesSappi Fine Paper North America

341

349

687

701

Sappi Fine Paper Europe

824

883

1,623

1,729

Sappi Southern Africa –

Pulp and paper

319

379

629

747

Forestry

Total

1,503

1,633

2,978

3,218

Operating profit (loss) excluding special itemsSappi Fine Paper North America

Sappi Fine Paper Europe

(2)

Sappi Southern Africa

114

Unallocated and eliminations

(1)

Total

125

113

225

Special items – (gains) lossesSappi Fine Paper North America

(5)

–

(3)

–

Sappi Fine Paper Europe

(4)

(9)

Sappi Southern Africa

(42)

(44)

Unallocated and eliminations

(1)

–

Total

(38)

(35)

(2)

Segment operating profit (loss)Sappi Fine Paper North America

Sappi Fine Paper Europe

(3)

Sappi Southern Africa

107

Unallocated and eliminations

(1)

(7)

(1)

(4)

(1)

Total

120

148

227

EBITDA excluding special itemsSappi Fine Paper North America

Sappi Fine Paper Europe

115

177

Sappi Southern Africa

162

Unallocated and eliminations

(1)

–

Total

128

217

290

411

Segment assetsSappi Fine Paper North America

980

946

980

946

Sappi Fine Paper Europe

1,750

1,901

1,750

1,901

Sappi Southern Africa

1,696

1,751

1,696

1,751

Unallocated and eliminations

(1)

(22)

Total

4,404

4,650

4,404

4,650

(1) Includes the group’s treasury operations and the self-insurance captive.

Reconciliation of EBITDA excluding special items and operating profit excluding special items to segment operating profit and profit for the period

(1)

Special items cover those items which management believe are material by nature or amount to the operating results and require separate disclosure.

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Mar 2012

US$ million

Half-year

ended

Mar 2013

US$ million

Half-year

ended

Mar 2012

US$ million

EBITDA excluding special items

128

217

290

411

Depreciation and amortisation

(88)

(92)

(177)

(186)

Operating profit excluding special items

125

113

225

Special items – gains (losses)

(5)

Plantation price fair value adjustment

(7)

104

(4)

Net restructuring provisions

(7)

(1)

(14)

(1)

Profit on disposal of property, plant and equipment

Impairments of assets

(47)

–

(47)

–

Black Economic Empowerment charge

(1)

(2)

Fire, flood, storm and related events

(4)

–

(7)

–

Segment operating profit

120

148

227

Net finance costs

(40)

(51)

(82)

(105)

Profit before taxation

122

Taxation

(31)

(11)

(42)

(19)

Profit for the period

103

Reconciliation of segment assets to total assets

Segment assets

4,404

4,650

4,404

4,650

Deferred taxation

118

Cash and cash equivalents

398

453

398

453

Other current liabilities

919

984

919

984

Taxation payable

Total assets

5,853

6,147

5,853

6,147

(1) In compliance with the U.S. Securities Exchange Commission (“SEC”) rules relating to “Conditions for Use of Non-GAAP

Financial Measures”, we have reconciled both operating profit excluding special items and EBITDA excluding special items to profit for the period, rather than operating profit.

We use operating profit excluding special items and EBITDA excluding special items as internal measures of performance to benchmark and compare performance, both between our own operations and as against other companies. Operating profit excluding special items and EBITDA excluding special items are used as measures by the group, together with measures of performance under IFRS, to compare the relative performance of operations in planning, budgeting and reviewing the performances of various businesses. We believe operating profit excluding special items and EBITDA excluding special items are useful measures of financial performance in addition to profit for the period, operating profit and other profitability measures under IFRS because it facilitates operating performance comparisons from period to period and company to company. For these reasons, we believe operating profit excluding special items, EBITDA excluding special items and other similar measures are regularly used by the investment community as a means of comparison of companies in our industry.

Different companies and analysts may calculate operating profit excluding special items and EBITDA excluding special items differently, so making comparisons among companies on this basis should be done very carefully. Operating profit excluding special items and EBITDA excluding special items are not measures of performance under IFRS and should not be considered in isolation or construed as a substitute for operating profit or profit for the period as an indicator of the company’s operations in accordance with IFRS.

sappi quarter results

Supplemental information

Reconciliation of net debt to interest-bearing borrowings

Mar 2013

US$ million

Sept 2012

US$ million

Interest-bearing borrowings

2,550

2,624

Non-current interest-bearing borrowings

2,243

2,358

Current interest-bearing borrowings

300

261

Bank overdraft

Cash and cash equivalents

(398)

(645)

Net debt

2,152

1,979

Exchange rates

Mar

2013

Dec

2012

Sept

2012

Jun

2012

Mar

2012

Exchange rates:Period end rate: US$1 = ZAR

9.2363

8.4851

8.3096

8.1650

7.6725

Average rate for the Quarter: US$1 = ZAR

8.9349

8.6975

8.2567

8.1229

7.7511

Average rate for the YTD: US$1 = ZAR

8.8173

8.6975

8.0531

7.9885

7.9237

Period end rate: €1 = US$

1.2821

1.3217

1.2859

1.2660

1.3344

Average rate for the Quarter: €1 = US$

1.3206

1.2970

1.2514

1.2838

1.3116

Average rate for the YTD: €1 = US$

1.3088

1.2970

1.2988

1.3145

1.3299

Sappi ordinary shares (JSE:SAP)

US Dollar share price conversion

ZAR

30Jun09

31Mar09

31Mar10

30Sep09

31Dec09

30Jun10

31Dec10

30Sep10

31Mar11

31Mar12

31Dec11

30Jun12

30Sep12

31Dec12

19Apr13

30Jun11

30Sep11

31Mar13

USD

30Jun09

31Mar09

31Mar10

30Sep09

31Dec09

30Jun10

31Dec10

30Sep10

31Mar11

31Mar12

31Dec11

30Jun12

30Sep12

31 Dec12

19Apr13

30Jun11

30Sep11

31Mar13

Sappi has a primary listing on the JSE Limited and a secondary listing on

the New York Stock Exchange

(Registration number 1936/008963/06)

~~Issuer~~(Incorporated ~~Code:~~in ~~SAVVI~~the Republic of South Africa)

~~JSE~~Share ~~Code~~code: SAP ISIN: ZAE000006284); NYSE code SPP

~~ISIN:~~(“Sappi” ~~ZAE000006284~~or the “Company”)

~~NYSE~~Dealing ~~Code:~~in ~~SPP~~securities by directors of listed companies

In ~~South Africa:~~terms of paragraph 3.63 of the Listings Requirements of the JSE Limited, we hereby provide the following information regarding dealings in securities of Sappi by a director of a major subsidiary company. Clearance for the dealings was received in terms of Listings Requirement 3.66, as follows and the transactions were done on market:

United States:

Director’s Name	:	S Manchester
Company (Subsidiary)	:	Sappi Fine Paper North America

Date of transaction	:	18 June 2013

Nature of transaction	:	Sale of shares

Number of shares sold	:	12,375

Selling price	:	1) 2,709 shares at R24.47995
		2) 8,500 shares at R24.48000
		3) 1,166 shares at R24.48012

Total value	:	R302,940.00

Class of security	:	Ordinary shares
Extent of interest	:	Direct beneficial

~~Computershare~~Denis ~~Investor~~ O’Connor

~~ADR~~Group ~~Depositary:~~Secretary

~~Services~~Sappi ~~(Proprietary)~~ Limited

~~The~~Tel ~~Bank~~+27 of(0)11 ~~New~~407 ~~York Mellon~~8072

70Fax ~~Marshall~~+27 ~~Street~~(0)11 339 1881

~~Investor Relations~~denis.oconnor@sappi.com

~~Johannesburg 2001~~ SIGNATURE

PO Box 11258

PO Box 61051

Church Street Station

Marshalltown 2107

New York, NY 10286-1258

Tel +27 (0)11 370 5000

Tel +1 610 382 7836

www.sappi.com

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: ~~May~~June 0919, 2013

SAPPI LIMITED, by /s/ L. Newman Name: L. Newman Title: Group Financial Controler

By: /s/ S.R Binnie

Name: S.R Binnie Title: Chief Financial Officer

Filing Compare · SAPPI LTD