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 August, ~~July~~ 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 620-KF ~~in paper as permitted by Regulation S-T Rule 101(b) (1): o~~

~~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): o~~X

~~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.~~------

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

IfIndicate ~~“Yes”~~by ischeck ~~marked,~~mark ~~indicate~~if ~~below~~ the ~~file~~registrant ~~number~~is ~~assigned~~submitting to the ~~registrant~~Form 6-K in ~~connection~~paper ~~with~~as ~~Rule 12g3-2(b): N/A~~permitted

~~INCORPORATION~~by BYRegulation ~~REFERENCE~~S-T Rule 101(b) (1):

~~Sappi~~Indicate ~~Limited’s~~by ~~announcement,~~check ~~furnished~~mark byif the ~~Registrant~~registrant ~~under this Form 6-K,~~ is ~~incorporated~~submitting ~~by reference into (i)~~ the ~~Registration Statements on~~ Form S6-8K ~~of the Registrant filed December 23, 1999, December 15, 2004 and February 2, 2010~~ in ~~connection~~paper ~~with~~as ~~The~~permitted 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 the Registrant’s shares to Participants under The Sappi Limited 2004 Performance Share Incentive Plan.

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 No

-------

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

connection with Rule 12g3-2(b):

FORWARD-LOOKING STATEMENTS

In order to utilize the “Safe 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~~andfuture ~~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 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~~arenot ~~not~~ limited to: o 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); o the impact on the business of the global economic downturn; o unanticipated production disruptions (including as a result of planned or unexpected power outages); o changes in environmental, tax and other laws and regulations; o adverse changes in the markets for the ~~group~~Group’s products, ; o the emergence of new technologies and changes in consumer trends ~~including~~increase ~~increased~~ preferences for digital media, ; o consequences of ~~substantial~~the Group’s leverage, including as a result of adverse changes in credit markets that affect ~~our~~the Group’s ability to raise capital when needed, changes in environmental, tax and other laws and regulations, unanticipated production disruptions (including as a result of planned or unexpected power outages), economic and political conditions in international markets, ; o adverse changes in the political situation and economy in the countries in which wethe ~~operate~~Group operates or the effect of governmental efforts to address present or future economic or social problems, ; o 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 o 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~~orotherwise.

~~Sappi Limited~~results

~~Announcement~~period ended

1June ~~July~~ 2013

~~Sappi~~Third ~~Limited~~Quarter

for
the

3rd 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

54%

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

46%

18%

12%

24%

Net operating assets**

Sappi Fine Paper North America

Sappi Fine Paper Europe

Sappi Southern Africa

41%

23%

36%

Cover picture – Shutterstock

The bulk of our dissolving wood pulp production is used to make viscose staple fibre,
a biodegradable, natural, organic product with breathability and moisture absorbency properties.
As the global population grows, particularly in Asia where most of our dissolving wood pulp
production is currently exported, so too, will demand for comfortable clothing. We are a market
leader in the VSF segment and are ideally positioned to take advantage of increased demand.

* for the period ended June 2013

** as at June 2013

sappi 3rd quarter results

Successful start-up of both dissolving wood pulp projects

Operating profit excluding special items US$8 million
(Q3 2012 US$60 million)

Loss for the period US$42 million (Q3 2012 US$106 million loss)

Loss per share 8 US cents (Q3 2012 loss of 20 US cents)

Net finance costs of US$42 million (Q3 2012 US$141 million)

Net debt US$2,297 million (Q3 2012 US$2,213 million)

Financial summary for the quarter

Quarter ended

Nine months ended

Jun 2013 Jun 2012 Mar 2013 Jun 2013 Jun 2012

Key figures: (US$ million)

Sales

1,417

1,544

1,503

4,395

4,762

Operating (loss) profit

(11)

137

261

Special items – losses (gains)

(1)

(38)

(16)

Operating profit excluding
special items

(2)

121

285

EBITDA excluding special items

(2)

150

128

381

561

(Loss) profit for the period

(42)

(106)

(18)

(3)

Basic (loss) earnings per share
(US cents)

(8)

(20)

(3)

(1)

Net debt

(3)

2,297

2,213

2,152

2,297

2,213

Key ratios: (%)

Operating (loss) profit to sales

(0.8)

2.2

5.2

3.1

5.5

Operating profit excluding
special items to sales

0.6

3.9

2.7

2.8

6.0

Operating profit excluding special
items to capital employed (ROCE)

0.9

6.4

4.4

4.5

10.3

EBITDA excluding special items
to sales

6.4

9.7

8.5

8.7

11.8

Return on average equity (ROE)

(4)

(12.1)

(26.5)

1.9

(1.7)

(0.3)

Net debt to total capitalisation

(4)

63.2

58.7

59.9

63.2

58.7

Net asset value per share
(US cents)

257

299

277

257

299

(1) Refer to page 15 for details on special items.

(2) Refer to page 15, note 8 to the group results for the reconciliation of EBITDA excluding special items and operating profit

excluding special items to segment operating (loss) profit, and loss for the period.

(3) Refer to page 17, supplemental information for the reconciliation of net debt to interest-bearing borrowings.

(4) Refer to page 16, supplemental information for the definition of the term.

Commentary on the quarter

Market conditions, particularly in our European paper business, deteriorated further during the quarter.
This, coupled with our conversion projects and planned annual maintenance shuts, impacted group
operating profit excluding special items for the period which consequently declined to US$8 million.

The third financial quarter is seasonally our weakest with typically lower demand in Europe and North
America and with planned annual maintenance shuts at most of our major pulp mills. In this transitional
year, the quarter was also impacted by the extended shuts at both the Cloquet and Ngodwana mills as
they completed the capital projects to convert existing paper pulp lines to produce dissolving wood pulp.

The third quarter results were also impacted by special items including a charge of US$11 million related
to a plantation price fair value adjustment and a charge of US$4 million due to plantation fire damage in
South Africa.

Net finance costs for the quarter of US$42 million were in line with those of the prior quarter. The
comparative Q3 2012 net finance costs of US$141 million included the once-off charges of US$89 million
related to the bond refinancing during that quarter.

Both the dissolving wood pulp projects at the Ngodwana and Cloquet pulp mills have now started
production. The Cloquet mill produced the first bales of dissolving wood pulp in early June, and the
ramp-up has progressed according to schedule with production and quality targets having been met.
The Ngodwana mill started up in late July, a few weeks later than scheduled, and we expect this mill
to ramp-up to full production over the coming months.

Cash flow and debt

Net cash utilised in the quarter was US$157 million, compared to net cash utilisation of US$56 million in
the equivalent quarter last year. This increase in cash utilisation was mainly as a result of capital
expenditure of US$174 million which related primarily to strategic investments in expanding our
dissolving wood pulp capacity and lower profits from operations. We expect that capital expenditure for
the full year will not exceed US$600 million.

The expected marginal increase in net debt to US$2,297 million compared to both the equivalent quarter
last year (US$2,213 million) and the prior quarter (US$2,152 million), was largely as a result of the capital
expenditure incurred during the quarter.

At quarter-end, liquidity remained strong with cash on hand of US$236 million and US$561 million
available from the undrawn committed revolving credit facilities in Europe and South Africa and we have
sufficient liquidity to complete the spending on the various capital projects. During the quarter, the
€330 million international securitisation programme was renewed and the facility maturity date extended
to 2016.

sappi 3rd quarter results

Operating Review for the Quarter

Europe

Quarter

ended

Jun 2013

€ million

Quarter

ended

Mar 2013

€ million

Quarter

ended

Dec 2012

€ million

Quarter

ended

Sept 2012

€ million

Quarter

ended

Jun 2012

€ million

Sales

574

624

616

659

620

Operating (loss) profit
excluding special items

(13)

(1)

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

(2.3)

(0.2)

2.6

5.3

1.3

EBITDA excluding special
items

EBITDA excluding special
items to sales (%)

4.2

5.4

8.8

11.1

7.6

RONOA pa (%)

(3.8)

(0.3)

4.6

9.8

2.2

This seasonally slow quarter saw a significant decline in demand for our major paper grades, with total
European industry deliveries of coated woodfree and coated mechanical paper down 8% year-on-year
for the quarter. Our total sales volumes were 6% below that of the equivalent quarter last year despite
good growth in specialities volumes.

Average prices realised were slightly higher than in the previous quarter, as a result of marginal price
increases for coated woodfree paper, but remain on average below those of the equivalent quarter in the
prior year. We continue to focus on tightly managing our costs, both fixed and variable costs per ton were
lower than those of the equivalent quarter last year, although hardwood pulp prices continue to put
pressure on margins.

The coated woodfree paper machine conversion project at the Alfeld mill, which will increase our
speciality paper production, remains on track for start-up during the first financial quarter of 2014.

North America

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Mar 2013

US$ million

Quarter

ended

Dec 2012

US$ million

Quarter

ended

Sept 2012

US$ million

Quarter

ended

Jun 2012

US$ million

Sales

324

341

346

377

360

Operating profit excluding
special items

Operating profit excluding
special items to sales (%)

0.6

6.2

5.2

11.1

5.0

EBITDA excluding special
items

EBITDA excluding special
items to sales (%)

6.2

12.3

10.7

16.7

10.6

RONOA pa (%)

0.8

8.9

7.9

18.2

7.7

The North American business successfully completed the conversion of the Cloquet pulp mill to produce
dissolving wood pulp during the quarter and started production of dissolving wood pulp at the beginning
of June. The start-up has proceeded according to plan with the first deliveries of dissolving wood pulp
leaving the mill during the quarter with good quality levels being achieved. Operating profit for the current
quarter was negatively impacted by an estimated US$12 million due to 22 days of incremental downtime
taken for the Cloquet pulp mill conversion project and related ramp-up of operations.

Pulp sales volumes were heavily impacted by downtime related to the conversion and the building of
stock to service the dissolving wood pulp business in the quarter. Dissolving wood pulp sales will
increase over the next quarter as the business continues the ramp-up to full capacity.

Coated paper sales volumes were essentially flat year-on-year; however the average net sales price per
ton was 4% lower than in the prior year due to a competitive local market and increased import pressure.
Prices appeared to have stabilised during the quarter and we expect to realise some price increases on
economy sheets and web products over the coming months.

The release business continues to perform well and sales volumes were up 11% compared to last year
driven by improved demand and the success of our key new patterns.

sappi 3rd quarter results

Sappi Southern Africa

Quarter

ended

Jun 2013

ZAR million

Quarter

ended

Mar 2013

ZAR million

Quarter

ended

Dec 2012

ZAR million

Quarter

ended

Sept 2012

ZAR million

Quarter

ended

Jun 2012

ZAR million

Sales

3,255

3,020

2,870

3,152

3,159

Operating profit excluding
special items

183

180

270

276

255

Operating profit excluding
special items to sales (%)

5.6

6.0

9.4

8.8

8.1

EBITDA excluding special
items

355

359

452

473

426

EBITDA excluding special
items to sales (%)

10.9

11.9

15.7

15.0

13.5

RONOA pa (%)

4.6

4.8

7.8

8.2

7.6

The Southern African Specialised Cellulose business' had another good quarter, generating ZAR463 million
in EBITDA excluding special items at an EBITDA excluding special items margin of 30%. Sales volumes
for the quarter were 183,000 tons, similar to the prior quarter and 8% lower than the equivalent quarter
last year due to the timing of shipments. During the quarter, the planned annual maintenance shut of one
of the pulp lines at Saiccor took place.

The estimated adverse operating profit impact of the conversion to produce dissolving wood pulp at
the Ngodwana mill and the extended pulp mill downtime was approximately US$9 million during the
quarter.

NBSK dollar pulp prices to which our dissolving pulp prices are linked, were higher than both the
equivalent quarter last year as well as the prior quarter, with the weaker Rand/Dollar exchange rate also
contributing to higher price levels. However, the dissolving pulp spot market remains competitive, with
new dissolving wood pulp capacity and an oversupplied viscose staple fibre market increasing the
pressure on sales prices.

The domestic paper packaging and office paper markets were weak during the quarter; although,
towards the end of the quarter and to date, there have been encouraging indications in the containerboard
segment of a possible improvement in volumes.

Variable costs, particularly purchased timber and pulp, remain a challenge, with the imported
components especially problematic due to the weaker Rand exchange rate. Fixed costs were flat
compared to the prior quarter and the equivalent quarter last year and we are pleased that we were able
to reach an agreement with labour on wage increases for the forthcoming year.

Outlook

The past quarter saw a further deterioration in European paper industry conditions, exacerbating
an already weak market, and demand is expected to remain subdued. Input costs, particularly pulp,
remain high and we do not expect to see any price increases in our major paper grades in the
coming quarter. Plans are being finalised that will result in significant capacity closure, lower costs
and improved operating margins in Europe. We envisage these actions will occur over a three-year
period and that any cash costs will be self-funded. The benefits of these actions will begin to flow
in the 2014 financial year.

The South African paper business expects to see growth in containerboard volumes, although
demand continues to be weak in other grades. Cost pressures and weak demand have resulted in
further actions to improve the profitability being implemented.

The North American paper business is positioned to perform well in an increasingly competitive
market and we expect to realise some price increases on economy sheets and web products over
the coming months.

Our expanded global Specialised Cellulose business is focussed on selling the increasing dissolving
wood pulp volumes, as the mills continue on their start-up curves, and cementing our position as
the leading producer in this market. Dissolving wood pulp prices are under pressure in this
competitive market and could have an impact on margins going forward.

Debt remains within the levels previously indicated despite the weaker operating performance.
We expect debt levels to peak during the fourth quarter, as the final outlays for the dissolving wood
pulp projects occur, and to end the quarter slightly lower than that reported for the third quarter.
Our medium-term leverage target remains between 1.5 and 2 times net debt to EBITDA.

We expect our European business to make an operating loss in the fourth financial quarter which
will result in the group making a small net loss for the financial year. Our full year results may be
impacted by the aforementioned strategic initiatives and, any asset impairments and restructuring
costs that may arise.

On behalf of the board

R J Boëttger

S R Binnie

Director Director

02 August 2013

sappi 3rd quarter results

Certain statements in this release that are neither reported financial results nor other historical

information, are forward-looking statements, including but not limited to statements that are

predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives.

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. You should not rely on forward-looking statements because they involve known and

unknown risks, uncertainties and other factors which are in some cases beyond our control and

may cause our actual results, performance or achievements 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 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);

•

the impact on our business of the global economic downturn;

• 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 our products;

• the emergence of new technologies and changes in consumer trends including increased

preferences for digital media;

•

consequences of our leverage, including as a result of adverse changes in credit markets that

affect our ability to raise capital when needed;

•

adverse changes in the political situation and economy in the countries in which we operate 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 our announced dissolving wood pulp conversion

projects), and achieving expected savings and synergies; and

• currency fluctuations.

We undertake 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.

Forward-looking statements

Condensed group income statement

Note

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Sales

1,417

1,544

4,395

4,762

Cost of sales

1,327

1,404

3,900

4,189

Gross profit

140

495

573

Selling, general and administrative
expenses

103

290

315

Other operating expenses (income)

(3)

Share of profit from associates and
joint ventures

(2)

–

(5)

–

Operating (loss) profit

(11)

137

261

Net finance costs

141

124

246

Net interest expense

140

124

249

Net foreign exchange loss (gain)

(1)

Net fair value gain on financial
instruments

(1)

–

(1)

(2)

(Loss) profit before taxation

(53)

(107)

Taxation

(11)

(1)

Current

(9)

(6)

Deferred

(2)

(8)

Loss for the period

(42)

(106)

(18)

(3)

Basic loss per share (US cents)

(8)

(20)

(3)

(1)

Weighted average number of
shares in issue (millions)

521.5

520.8

521.3

520.7

Diluted loss per share (US cents)

(8)

(20)

(3)

(1)

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

521.5

520.8

521.3

520.7

Condensed group statement of comprehensive income

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Loss for the period

(42)

(106)

(18)

(3)

Other comprehensive (loss) income,
net of tax

(64)

(176)

Exchange differences on translation
of foreign operations

(76)

(70)

(184)

(10)

Actuarial gains on post-employment
benefit funds

–

Movements in hedging reserves

(14)

(4)

(23)

Deferred tax effect of above items

(9)

(8)

Recognition of previously unrecognised
deferred tax asset

–

101

–

101

Total comprehensive (loss) income
for the period

(106)

(88)

(194)

sappi 3rd quarter results

Condensed group balance sheet

Jun 2013

US$ million

Reviewed

Sept 2012

US$ million

ASSETS

Non-current assets

3,839

3,990

Property, plant and equipment

3,110

3,157

Plantations

481

555

Deferred taxation

120

154

Other non-current assets

128

124

Current assets

1,746

2,178

Inventories

754

726

Trade and other receivables

756

807

Cash and cash equivalents

236

645

Assets held for sale

–

Total assets

5,672

6,168

EQUITY AND LIABILITIES

Shareholders’ equity

Ordinary shareholders’ interest

1,340

1,525

Non-current liabilities

3,332

3,328

Interest-bearing borrowings

2,434

2,358

Deferred taxation

285

319

Other non-current liabilities

613

651

Current liabilities

995

1,315

Interest-bearing borrowings

261

Bank overdraft

Other current liabilities

883

1,023

Taxation payable

Liabilities associated with assets held for sale

–

Total equity and liabilities

5,672

6,168

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

521.5

520.8

Condensed group statement of cash flows

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Loss for the period

(42)

(106)

(18)

(3)

Adjustment for:

Depreciation, fellings and amortisation

100

108

310

333

Taxation

(11)

(1)

Net finance costs

141

124

246

Defined post-employment benefits paid

(22)

(16)

(54)

(39)

Plantation fair value adjustments

(10)

(1)

(151)

(40)

Asset (impairment reversals) impairments

(1)

(3)

Net restructuring provisions

–

Other non-cash items

Cash generated from operations

137

326

546

Movement in working capital

(27)

(128)

(217)

Net finance costs paid

(57)

(56)

(144)

(157)

Taxation paid

(2)

(2)

(15)

(12)

Cash generated from operating
activities

160

Cash utilised in investing activities

(167)

(108)

(397)

(236)

Capital expenditure

(174)

(112)

(449)

(246)

Proceeds on disposal of
non-current assets

Other movements

–

(1)

Net cash utilised

(157)

(56)

(358)

(76)

Cash effects of financing activities

(7)

(42)

(142)

Net movement in cash and
cash equivalents

(164)

(24)

(400)

(218)

Condensed group statement of changes in equity

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Balance – beginning of period

1,525

1,478

Total comprehensive (loss) income for the period

(194)

Transfers from the share purchase trust

Transfers of vested share options

(3)

(2)

Share-based payment reserve

Balance – end of period

1,340

1,557

sappi 3rd quarter results

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

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Operating (loss) profit

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

Depreciation and amortisation

260

276

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

Changes in volume

Fellings

Growth

(21)

(21)

(58)

(64)

(4)

(3)

(8)

(7)

Plantation price fair value adjustment

(93)

(101)

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

Asset (impairment reversals)
impairments

(1)

(3)

Loss (profit) on disposal of property,
plant and equipment

–

(1)

(7)

Net restructuring provisions

–

Black Economic Empowerment charge

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Headline (loss) earnings per share

Headline (loss) earnings per share
(US cents)

(8)

(20)

(2)

Weighted average number of shares
in issue (millions)

521.5

520.8

521.3

520.7

Diluted headline (loss) earnings per share
(US cents)

(8)

(20)

(2)

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

521.5

520.8

523.5

520.7

Calculation of headline (loss) earnings

Loss for the period

(42)

(106)

(18)

(3)

Asset (impairment reversals) impairments

(1)

(3)

Loss (profit) on disposal of property,
plant and equipment

–

(1)

(7)

Tax effect of above items

(15)

Headline (loss) earnings

(42)

(106)

(12)

Jun 2013

US$ million

Reviewed

Sept 2012

US$ million

Capital commitments

Contracted

121

267

Approved but not contracted

169

244

290

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 19% 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 equipment

As 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$51 million (ZAR462 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 assets

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

sappi 3rd quarter results

Plantations

Due to the Ngodwana mill dissolving wood pulp conversion project and the closure of the Kraft
Continuous Digester at Tugela mill, 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 once-off favourable price fair value
adjustment of US$96 million (ZAR863 million).

Inventories, trade and other receivables and other current liabilities

The group increased its inventory levels in anticipation of the dissolving wood pulp conversion
projects. The decrease in trade and other payables is due to seasonality together with a decline in
operating volumes and the decrease in trade and other receivables is primarily due to 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 borrowings

Cash and cash equivalents decreased largely due to the capital expenditure outflows of
US$449 million which relates mostly to the dissolving wood pulp conversion projects. In addition, the
remaining stub of the group’s senior secured notes due 2014 of US$41 million (€31 million),
the US$111 million (ZAR1.0 billion) public bond maturing in June 2013 as well as the group’s private
placement bonds in South Africa amounting to US$42 million (ZAR382 million) were repaid. These
outflows were partially offset by the placement of a public bond offering of US$166 million
(ZAR1.5 billion) and a seven-year bullet loan from GroCapital of US$44 million (ZAR400 million).

7. Assets held for sale

During the quarter, Sappi entered into an agreement to sell its shares in Usutu Forest Products
Company Limited (‘Usutu’) as well as the shareholder loan claim against Usutu, to Montigny
Investments Limited subject to the fulfilment of certain conditions precedent. The disposal group,
consisting mainly of plantations, has been reclassified as held for sale.

8. Segment information

Quarter

ended

Jun 2013

Metric tons

(000’s)

Quarter

ended

Jun 2012

Metric tons

(000’s)

Nine

months

ended

Jun 2013

Metric tons

(000’s)

Nine

months

ended

Jun 2012

Metric tons

(000’s)

Sales volume

Sappi Fine Paper North America

297

351

963

1,031

Sappi Fine Paper Europe

796

843

2,527

2,611

Sappi Southern Africa –

Pulp and paper

405

435

1,172

1,253

Forestry

309

294

888

830

Total

1,807

1,923

5,550

5,725

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

Sales

Sappi Fine Paper North America

324

360

1,011

1,061

Sappi Fine Paper Europe

749

795

2,372

2,524

Sappi Southern Africa –

Pulp and paper

324

367

953

1,114

Forestry

Total

1,417

1,544

4,395

4,762

Operating profit (loss) excluding
special items

Sappi Fine Paper North America

Sappi Fine Paper Europe

(16)

Sappi Southern Africa

145

Unallocated and eliminations

(1)

–

Total

121

285

Special items – loss (gain)

Sappi Fine Paper North America

(1)

(4)

Sappi Fine Paper Europe

(3)

Sappi Southern Africa

(30)

Unallocated and eliminations

(1)

–

Total

(16)

Segment operating (loss) profit

Sappi Fine Paper North America

Sappi Fine Paper Europe

(19)

(4)

Sappi Southern Africa

100

123

Unallocated and eliminations

(1)

–

(4)

–

Total

(11)

137

261

EBITDA excluding special items

Sappi Fine Paper North America

110

Sappi Fine Paper Europe

146

237

Sappi Southern Africa

129

214

Unallocated and eliminations

(1)

–

Total

150

381

561

Segment assets

Sappi Fine Paper North America

1,027

926

1,027

926

Sappi Fine Paper Europe

1,793

1,852

1,793

1,852

Sappi Southern Africa

1,607

1,653

1,607

1,653

Unallocated and eliminations

(1)

(12)

Total

4,415

4,497

4,415

4,497

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

sappi 3rd quarter results

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

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

Quarter

ended

Jun 2013

US$ million

Quarter

ended

Jun 2012

US$ million

Nine

months

ended

Jun 2013

US$ million

Nine

months

ended

Jun 2012

US$ million

EBITDA excluding special items

150

381

561

Depreciation and amortisation

(83)

(90)

(260)

(276)

Operating profit excluding special
items

121

285

Special items – (losses) gains

(19)

(26)

(24)

Plantation price fair value adjustment

(11)

(20)

(24)

Net restructuring provisions

(2)

–

(16)

(1)

(Loss) profit on disposal of property,
plant and equipment

–

(2)

Asset impairment reversals
(impairments)

(46)

Black Economic Empowerment
charge

(1)

(1)

(3)

(3)

Fire, flood, storm and related events

(6)

(6)

(13)

(6)

Segment operating (loss) profit

(11)

137

261

Net finance costs

(42)

(141)

(124)

(246)

(Loss) profit before taxation

(53)

(107)

Taxation

(31)

(18)

Loss for the period

(42)

(106)

(18)

(3)

Reconciliation of segment assets
to total assets

Segment assets

4,415

4,497

4,415

4,497

Deferred taxation

120

144

120

144

Cash and cash equivalents

236

403

236

403

Other current liabilities

883

950

883

950

Taxation payable

Liabilities associated with assets held
for sale

–

Total assets

5,672

6,013

5,672

6,013

Supplemental information (this information has not been audited or reviewed)

General definitions

Average – averages are calculated as the sum of the opening and closing balances for the relevant
period divided by two

Black Economic Empowerment – as envisaged in the Black Economic Empowerment (BEE) legislation
in South Africa

Black Economic Empowerment charge – represents the IFRS 2 non-cash charge associated with the
BEE transaction implemented in fiscal 2010

Fellings – the amount charged against the income statement representing the standing value of the
plantations harvested

NBSK – Northern Bleached Softwood Kraft pulp. One of the main varieties of market pulp, produced
from coniferous trees (ie spruce, pine) in Scandinavia, Canada and northern USA. The price of NBSK is
a benchmark widely used in the pulp and paper industry for comparative purposes

SG&A – selling, general and administrative expenses

Non-GAAP measures

The group believes that it is useful to report certain non-GAAP measures for the following reasons:

– these measures are used by the group for internal performance analysis;

– the presentation by the group’s reported business segments of these measures facilitates
comparability with other companies in our industry, although the group’s measures may not be
comparable with similarly titled profit measurements reported by other companies;

– it is useful in connection with discussion with the investment analyst community and debt rating
agencies

These non-GAAP measures should not be considered in isolation or construed as a substitute for GAAP
measures in accordance with IFRS

Capital employed – shareholders’ equity plus net debt

EBITDA excluding special items – earnings before interest (net finance costs), taxation, depreciation,
amortisation and special items

Headline earnings – as defined in circular 3/2012 issued by the South African Institute of Chartered
Accountants, separates from earnings all separately identifiable re-measurements. It is not necessarily a
measure of sustainable earnings. It is a Listings Requirement of the JSE Limited to disclose headline
earnings per share

Net assets – total assets less total liabilities

Net asset value per share – net assets divided by the number of shares in issue at balance sheet date

Net debt – current and non-current interest-bearing borrowings, and bank overdraft (net of cash, cash
equivalents and short-term deposits)

Net debt to total capitalisation – net debt divided by capital employed

Net operating assets – total assets (excluding deferred taxation and cash) less current liabilities
(excluding interest-bearing borrowings and overdraft). Net operating assets equate to segment assets

ROCE – annualised return on average capital employed. Operating profit excluding special items divided
by average capital employed

ROE – annualised return on average equity. Profit for the period divided by average shareholders’ equity

RONOA – return on average net operating assets. Operating profit excluding special items divided by
average segment assets

Special items – special items cover those items which management believe are material by nature or
amount to the operating results and require separate disclosure. Such items would generally include
profit or loss on disposal of property, investments and businesses, asset impairments, restructuring
charges, non-recurring integration costs related to acquisitions, financial impacts of natural disasters,
non-cash gains or losses on the price fair value adjustment of plantations and alternative fuel tax credits
receivable in cash

The above financial measures are presented to assist our shareholders and the investment community in interpreting our financial
results. These financial measures are regularly used and compared between companies in our industry.

sappi 3rd quarter results

Supplemental information (this information has not been audited or reviewed)

Summary rand convenience translation

Quarter

ended

Jun 2013

Quarter

ended

Jun 2012

Nine

months

ended

Jun 2013

Nine

months

ended

Jun 2012

Key figures: (ZAR million)
Sales

13,427

12,542

39,715

38,041

Operating (loss) profit

(104)

276

1,238

2,085

Special items – losses (gains)

(1)

180

211

(145)

192

Operating profit excluding special items

(1)

487

1,093

2,277

EBITDA excluding special items

(1)

862

1,218

3,443

4,482

Loss for the period

(398)

(861)

(163)

(24)

Basic loss per share (SA cents)

(76)

(162)

(31)

(8)

Net debt

(1)

22,694

18,069

22,694

18,069

Key ratios: (%)
Operating (loss) profit to sales

(0.8)

2.2

3.1

5.5

Operating profit excluding special items
to sales

0.6

3.9

2.8

6.0

Operating profit excluding special items to
capital employed (ROCE)

(1)

0.9

6.5

4.5

10.2

EBITDA excluding special items to sales

6.4

9.7

8.7

11.8

Return on average equity (ROE)

(12.0)

(27.2)

(1.7)

(0.3)

Net debt to total capitalisation

(1)

63.2

58.7

63.2

58.7

(1) Refer to page 16, supplemental information for the definition of the term.
The above financial results have been translated into Rands from US Dollars as follows:
– assets and liabilities at rates of exchange ruling at period end; and
– income, expenditure and cash flow items at average exchange rates.

Reconciliation of net debt to interest-bearing borrowings

Jun 2013

US$ million

Sept 2012

US$ million

Interest-bearing borrowings

2,533

2,624

Non-current interest-bearing borrowings

2,434

2,358

Current interest-bearing borrowings

261

Bank overdraft

Cash and cash equivalents

(236)

(645)

Net debt

2,297

1,979

Exchange rates

Jun

2013

Mar

2013

Dec

2012

Sept

2012

Jun

2012

Exchange rates:

Period end rate: US$1 = ZAR

9.8800

9.2363

8.4851

8.3096

8.1650

Average rate for the Quarter: US$1 = ZAR

9.4756

8.9349

8.6975

8.2567

8.1229

Average rate for the YTD: US$1 = ZAR

9.0364

8.8173

8.6975

8.0531

7.9885

Period end rate: €1 = US$

1.3010

1.2821

1.3217

1.2859

1.2660

Average rate for the Quarter: €1 = US$

1.3060

1.3206

1.2970

1.2514

1.2838

Average rate for the YTD: €1 = US$

1.3078

1.3088

1.2970

1.2988

1.3145

Sappi ordinary shares (JSE:SAP)

US Dollar share price conversion

ZAR

30
Jun
09

31
Mar
10

30
Sep
09

31
Dec
09

30
Jun
10

31
Dec
10

30
Sep
10

31
Mar
11

31
Mar
12

31
Dec
11

30
Jun
12

30
Sep
12

19
Jul
13

30
Jun
11

30
Sep
11

31
Dec
12

31
Mar
13

30
Jun
13

USD

30
Jun
09

31
Mar
10

30
Sep
09

31
Dec
09

30
Jun
10

31
Dec
10

30
Sep
10

31
Mar
11

31
Mar
12

31
Dec
11

30
Jun
12

30
Sep
12

19
Jul
13

30
Jun
11

30
Sep
11

31
Dec
12

31
Mar
13

30
Jun
13

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

the New York Stock Exchange

(Registration number 1936/008963/06)

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

~~Share~~JSE ~~code~~Code: SAP

~~ISIN: ZAE000006284);~~ NYSE ~~code~~Code: SPP

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

~~DISPOSAL~~ BYSouth ~~SAPPI~~ Africa: ~~OF USUTU FOREST PRODUCTS COMPANY LIMITED~~

1.United ~~INTRODUCTION~~States:

~~Sappi~~Computershare shareholders are informed that Sappi has, through its wholly-owned subsidiaries Sappi Southern Africa Limited and Brocas Limited (“the Sellers”) entered into an agreement with Montigny Investments Limited (“Montigny”) in terms of which, subject to the fulfilment of certain conditions precedent, Montigny will acquire all the shares in, and the shareholder loan claim against, Usutu Forest Products Company Limited (“Usutu”), from the Sellers (“Transaction”).Investor

2.ADR ~~DESCRIPTION OF USUTU~~Depositary:

~~Usutu~~Services ~~controls~~(Proprietary) ~~approximately~~Limited ~~67,000 hectares of softwood plantations, a decommissioned pulp mill and two villages in close proximity to the pulp mill all located in the Kingdom of Swaziland.~~

3.The ~~BACKGROUND~~Bank ~~INFORMATION~~of ONNew ~~MONTIGNY~~York Mellon

~~Montigny~~70 isMarshall ~~registered~~Street in the Kingdom of Swaziland and carries on business within the timber industry. It supplies products to the mining industry, produces finished products for the building industry, supplies by-products to the bio-fuel, leather and charcoal industries, and produces packaging materials and poles.

4.Investor ~~RATIONALE FOR THE TRANSACTION~~Relations

~~Sappi~~Johannesburg ~~evaluates~~2001 its portfolio of assets on an on-going basis to ensure optimum usage and maximisation of value. Sappi’s conversion and expansion of its Ngodwana plant to produce dissolving wood pulp rather than bleached softwood pulp, has reduced its softwood requirements.

5.PO ~~SALE~~Box ~~CONSIDERATION AND USE OF PROCEEDS~~11258

~~The~~PO ~~aggregate~~Box ~~purchase~~61051 ~~price payable by Montigny to Sappi is R1 billion (US$ 102 million) and will be settled in cash on closing.~~

~~The~~Church ~~proceeds~~Street ~~will be used for general corporate purposes and will reduce Sappi’s net debt level on a pro forma basis as at 31 March 2013 to US$ 2,045 million.~~Station

6.Marshalltown ~~CONDITIONS~~2107 ~~PRECEDENT~~

~~The~~New ~~sale of Usutu is subject to the fulfilment of a number of conditions precedent~~York, ~~including:~~NY 10286-1258

-Tel ~~Royal~~+27 ~~Assent~~(0)11 ~~from~~370 ~~the~~5000 ~~King of Swaziland;~~

-Tel ~~Approval~~+1 ~~from~~610 ~~the~~382 ~~Competition Authorities in Swaziland and South Africa;~~7836

~~- Approval in terms of the South African Exchange Control Regulations; and~~www.sappi.com

~~- The purchaser obtaining and furnishing the necessary guarantees in relation to the acquisition consideration to the Sellers.~~SIGNATURES

7. PRO FORMA FINANCIAL EFFECTS

The unaudited pro forma financial effects of the Transaction, which are the responsibility of the Sappi directors, have been prepared for illustrative purposes only and due to the nature thereof, they may not fairly represent Sappi’s financial position nor the effect on future earnings after the Transaction. The unaudited pro forma financial effects assume that the Transaction has been fully implemented on 01 October 2012 for income statement purposes and 31 March 2013 for balance sheet purposes. It does not purport to be indicative of what the financial results would have been, had the Transaction been implemented on a different date.

The unaudited pro forma financial effects are presented in a manner consistent in all respects with International Financial Reporting Standards and Sappi’s accounting policies as at 31 March 2013.

The pro forma adjustments to the reviewed group income statement for the half-year ended 31 March 2013 have been converted from ZAR to US Dollars using the average rate of exchange for the half-year of US$1: ZAR8.8173. The pro forma adjustments to the reviewed group balance sheet as at 31 March 2013 have been converted using Sappi’s March 2013 closing rate of US$1: ZAR9.2363.

	Reviewed Before Transaction		Unaudited Pro forma After Transaction		Change (%)
	(cents)		(cents)
Basic earnings per share		5		12		140
Diluted earnings per share		5		12		140
Headline earnings per share		10		11		10
Net asset value per share		277		282		1.9
Net tangible asset value per share		273		278		1.9

Notes:

i. The basic earnings per share, diluted earnings per share and headline earnings per share in the “Unaudited Pro forma after Transaction” column have been calculated on the basis that the Transaction was effected on 01 October 2012.

ii. The net asset value per share and the net tangible asset value per share figures in the “Unaudited Pro forma after Transaction” column have been calculated on the basis that the transaction was effected on 31 March 2013. The net asset value at 31 March 2013 of the assets that are the subject of the Transaction are US$83 million.

iii. There are no taxation consequences arising from the Transaction.

iv. The basic earnings per share, diluted earnings per share and basic headline earnings per share are calculated based on the weighted average number of shares in issue of 521.2 million shares at 31 March 2013.

v. The net asset value per share and the net tangible asset value per share have been calculated based on 521.5 million shares in issue at 31 March 2013.

8. EFFECTIVE DATE OF THE TRANSACTION

In terms of the agreement the closure and implementation of the Transaction is subject to the various conditions precedent described above which are anticipated to be fulfilled by 30 September 2013, but this date may be extended.

9. CLASSIFICATION OF THE TRANSACTION

The Transaction is a category 2 transaction in terms of the Listings Requirement of the JSE Limited and does not require Sappi shareholder approval.

01 July 2013

Johannesburg

Sponsor: UBS

SIGNATURE

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: August ~~July 1~~02, 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