<div>- adult basic education and training</div>

<div>- the acquisition of M-real’s coated graphic paper business on 31 December 2008</div>

<div>- the date on which control in respect of subsidiaries, joint control in joint ventures and significant influence in associates commences</div>

<div>- American Forest and Paper Association</div>

<div>- meaning dry solids content of 90% and moisture content of 10%</div>

<div>- sales divided by total assets</div>

<div><font color="black" size="2" face="Calibri">- an entity, other than a subsidiary or joint venture, over which the group has significant influence over financial and operating policies</font></div>

<div><font color="black" size="2" face="Calibri">- averages are calculated as the sum of the opening and closing balances for the relevant period divided by two</font></div>

<div><font color="black" size="2" face="Calibri">- net profit for the year divided by the weighted average number of shares in issue during the year</font></div>

<div>- organic material such as wood, waste and alcohol fuels, as well as gaseous and liquid fuels produced from these feedstocks when they are burned to produce energy</div>

<div>- as envisaged in the Black Economic Empowerment (BEE) legislation in South Africa</div>

<div><font color="black" size="2" face="Calibri">- represents the IFRS 2 non-cash charge associated with the BEE transaction implemented in fiscal 2010</font></div>

<div><font color="black" size="2" face="Calibri">- pulp that has been bleached by means of chemical additives to make it suitable for fine paper production</font></div>

<div><font color="black" size="2" face="Calibri">- shareholders' equity plus net debt</font></div>

<div><font color="black" size="2" face="Calibri">- cash generated by operations divided by finance costs less finance revenue</font></div>

<div>- Confederation of European Paper Industries</div>

<div><font color="black" size="2" face="Calibri">- highly purified chemical pulp intended primarily for conversion into chemical derivatives of cellulose and used mainly in the manufacture of viscose staple fibre, solvent spin fibre and filament</font></div>

<div>- the amount of oxygen required to break down the organic compounds in effluent</div>

<div><font color="black" size="2" face="Calibri">- a generic term for pulp made from wood fibre that has been produced in a chemical process</font></div>

<div>- combined heat and power</div>

<div><font color="black" size="2" face="Calibri">- coated paper made from groundwood pulp which has been produced in a mechanical process, primarily used for magazines, catalogues and advertising material</font></div>

<div><font color="black" size="2" face="Calibri">- papers that contain a layer of coating material on one or both sides. The coating materials, consisting of pigments and binders, act as a filler to improve the printing surface of the paper</font></div>

<div><font color="black" size="2" face="Calibri">- coated paper made from chemical pulp which is made from wood fibre that has been produced in a chemical process, primarily used for high end publications and advertising material</font></div>

<div><font color="black" size="2" face="Calibri">- the date that an item of property, plant and equipment, whether acquired or constructed, is brought into use</font></div>

<div>- refers to an independent employer or self-employed person performing work for Sappi, excludes temporary or fixed-term employees</div>

<div><font color="black" size="2" face="Calibri">- the ability, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain economic benefit from its activities. When assessing the ability to control an entity, the existence and effect of potential voting rights that are presently exercisable or convertible are taken into account</font></div>

<div><font color="black" size="2" face="Calibri">- paperboard made from chemical and semi-chemical pulp, or waste paper, that is to be converted to a corrugated board by passing it through corrugating cylinders. Corrugating medium between layers of linerboard form the board from which corrugated boxes are produced</font></div>

<div><font color="black" size="2" face="Calibri">- the Committee of Sponsoring Organisations of the Treadway Commission</font></div>

<div>- corporate social investment and corporate social responsibility</div>

<div><font color="black" size="2" face="Calibri">- current assets divided by current liabilities</font></div>

<div><font color="black" size="2" face="Calibri">- is calculated by assuming conversion or exercise of all potentially dilutive shares, share options and share awards unless these are anti-dilutive</font></div>

<div><font color="black" size="2" face="Calibri">- this is the pre-tax interest rate that reflects the current market assessment of the time value of money for the purposes of determining discounted cash flows. In determining the cash flows the risks specific to the asset or liability are taken into account in determining those cash flows and are not included in determining the discount rate</font></div>

<div><font color="black" size="2" face="Calibri">- the date on which control in respect of subsidiaries, joint control in joint ventures and significant influence in associates ceases</font></div>

<div><font color="black" size="2" face="Calibri">- dividends per share, which were declared after year end, in US cents divided by the financial year-end closing prices on the JSE Limited converted to US cents using the closing financial year-end exchange rate</font></div>

<div><font color="black" size="2" face="Calibri">- headline earnings per share divided by the financial year-end closing prices on the JSE Limited converted to US cents using the closing financial year-end exchange rate</font></div>

<div><font color="black" size="2" face="Calibri">- earnings before interest (net finance costs), taxation, depreciation, amortisation and special items</font></div>

<div>- refers to bleaching sequences in which no chlorine is used</div>

<div>- is present in many forms such as solar, mechanical, thermal, electrical and chemical. Any source of energy can be tapped to perform work. In power plants, coal is burnt and its chemical energy is converted into electrical energy. To generate steam, coal and other fossil fuels are burned, thus converting stored chemical energy into thermal energy</div>

<div><font color="black" size="2" face="Calibri">- the value for which an asset could be exchanged or a liability settled in a market related transaction</font></div>

<div><font color="black" size="2" face="Calibri">- the amount charged against the income statement representing the standing value of the plantations harvested</font></div>

<div><font color="black" size="2" face="Calibri">- fibre is generally referred to as pulp in the paper industry. Wood is treated chemically or mechanically to separate the fibres during the pulping process</font></div>

<div><font color="black" size="2" face="Calibri">- comprise the financial position (assets, liabilities and equity), results of operations (revenue and expenses) and cash flows of an entity and of the group</font></div>

<div><font color="black" size="2" face="Calibri">- paper usually produced from chemical pulp for printing and writing purposes and consisting of coated and uncoated paper</font></div>

<div><font color="black" size="2" face="Calibri">- an entity whose activities are based or conducted in a country or currency other than that of the reporting entity</font></div>

<div>- largest forestry organisation representing growers of timber in South Africa</div>

<div><font color="black" size="2" face="Calibri">- in terms of the Forest Stewardship Council (FSC) scheme, there are two types of certification. In order for land to achieve FSC endorsement, its forest management practices must meet the FSC’s ten principles and other assorted criteria. For manufacturers of forest products, including paper manufacturers like Sappi, Chain-of-Custody certification involves independent verification of the supply chain, which identifies and tracks the timber through all stages of the production process from the tree farm to the end product</font></div>

<div><font color="black" size="2" face="Calibri">- the currency of the primary economic environment in which the entity operates</font></div>

<div>- an independent consumer protection programme created by the Centre for Resource Solutions for the sale of renewable energy and greenhouse gas reduction (<a href="http://www.green-e.org/">www.green-e.org</a>)</div>

<div><font color="black" size="2" face="Calibri">- the GHGs included in the Kyoto Protocol are carbon dioxide, methane, nitrous oxide, hydro­fluoro­carbons, perfluorocarbons and sulphur hexafluoride</font></div>

<div><font color="black" size="2" face="Calibri">- the group comprises Sappi Limited, its subsidiaries and its interest in joint ventures and associates</font></div>

<div><font color="black" size="2" face="Calibri">- as defined in circular 3/2009 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</font></div>

<div>- heavy fuel oil</div>

<div><font color="black" size="2" face="Calibri">- cost of sales divided by inventory on hand at balance sheet date</font></div>

<div><font color="black" size="2" face="Calibri">- developed by the International Standardisation Organisation (ISO), ISO 9000 is a series of standards focused on quality management systems, while the ISO 14001 series is focused on environmental performance and management</font></div>

<div><font color="black" size="2" face="Calibri">- an economic activity over which the group exercises joint control established under a contractual arrangement</font></div>

<div><font color="black" size="2" face="Calibri">- the main securities exchange in South Africa, previously known as the Johannesburg Stock Exchange</font></div>

<div><font color="black" size="2" face="Calibri">- packaging paper (bleached or unbleached) made from kraft pulp</font></div>

<div><font color="black" size="2" face="Calibri">- chemical wood pulp produced by digesting wood by means of the sulphate pulping process</font></div>

<div><font color="black" size="2" face="Calibri">- a document signed by over 160 countries at Kyoto, Japan in December 1997 which commits signatories to reducing their emission of greenhouse gases relative to levels emitted in 1990</font></div>

<div><font color="black" size="2" face="Calibri">- the grade of paperboard used for the exterior facings of corrugated board. Linerboard is combined with corrugating medium by converters to produce corrugated board used in boxes</font></div>

<div>- white liquor is the aqueous solution of sodium hydroxide and sodium sulphide used to extract lignin during kraft pulping. Black liquor is the resultant combination of lignin, water and chemicals</div>

<div><font color="black" size="2" face="Calibri">= (number of lost time injuries x 200,000) / man hours</font></div>

<div><font color="black" size="2" face="Calibri">- pulp produced for sale on the open market, as opposed to that produced for own consumption in an integrated mill</font></div>

<div><font color="black" size="2" face="Calibri">- pulp produced by means of the mechanical grinding or refining of wood or wood chips</font></div>

<div><font color="black" size="2" face="Calibri">- 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</font></div>

<div><font color="black" size="2" face="Calibri">- net assets divided by the number of shares in issue at balance sheet date</font></div>

<div><font color="black" size="2" face="Calibri">- total assets less total liabilities</font></div>

<div><font color="black" size="2" face="Calibri">- current and non-current interest-bearing borrowings, and bank overdraft (net of cash, cash equivalents and short-term deposits)</font></div>

<div><font color="black" size="2" face="Calibri">- net debt divided by capital employed</font></div>

<div><font color="black" size="2" face="Calibri">- total assets (excluding deferred taxation and cash and cash equivalents) less current liabilities (excluding interest-bearing borrowings and overdraft)</font></div>

<div><font color="black" size="2" face="Calibri">- paper produced for the printing of newspapers mainly from mechanical pulp and/or recycled waste paper</font></div>

<div>- Non-governmental organisation</div>

<div><font color="black" size="2" face="Calibri">- is an international health and safety standard aimed at minimising occupational health and safety risks firstly, by conducting a variety of analyses and secondly, by setting standards</font></div>

<div><font color="black" size="2" face="Calibri">- a component of the group:</font></div> <ul> <li><font color="black" size="2" face="Calibri">that represents a separate major line of business or geographical area of operation; and</font></li> <li><font color="black" size="2" face="Calibri">is distinguished separately for financial and operating purposes</font></li></ul>

<div><font color="black" size="2" face="Calibri">- profit for the period divided by the ordinary dividend declared multiplied by the actual number of shares in issue at period-end</font></div>

<div><font color="black" size="2" face="Calibri">- shareholders’ equity divided by the actual number of shares in issue at year-end</font></div>

<div><font color="black" size="2" face="Calibri">- paper used for packaging purposes</font></div>

<div>- Paper Manufacturers Association of South Africa</div>

<div><font color="black" size="2" face="Calibri">- the world’s largest forest certification system, the PEFC is focused on promoting sustainable forest management. Using multi-stakeholder processes, the organisation develops forest management certification standards and schemes which have been signed by 37 nations in Europe and other inter-governmental processes for sustainable forestry management around the world</font></div>

<div>- the rate at which energy is used or produced</div>

<div><font color="black" size="2" face="Calibri">- the currency in which financial results of an entity are presented</font></div>

<div><font color="black" size="2" face="Calibri">- the financial year-end closing prices on the JSE Limited converted to US cents using the closing financial year-end exchange rate divided by headline earnings per share</font></div>

<div><font color="black" size="2" face="Calibri">- wood suitable for producing pulp – usually not of sufficient standard for saw-milling</font></div>

<div><font color="black" size="2" face="Calibri">- an asset that necessarily takes a substantial period (normally in excess of six months) to get ready for its intended use</font></div>

<div>- relates to the refinancing that we implemented in April 2011 which was comprised of the following transactions:</div> <div>(a) the issuance of the 2018 and 2021 Notes</div> <div>(b) the redemption of the remaining US$350 million 2012 Notes,</div> <div>(c) to repay €200 million of the outstanding borrowings under our OeKB Term Loan Facility; and</div> <div>(d) the increase of our existing, then undrawn revolving credit facility from €209 million to €350 million and maturity extension from 2012 to 2016</div>

<div><font color="black" size="2" face="Calibri">- the amount that reflects the greater of the net selling price and the value in use that can be attributed to an asset as a result of its ongoing use by the entity. In determining the value in use, expected future cash flows are discounted to their present values using the discount rate</font></div>

<div>- a global index of endangered species published by the World Conservation Union</div>

<div><font color="black" size="2" face="Calibri">- parties are considered to be related if one party directly or indirectly has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or is a member of the key management of Sappi Limited</font></div>

<div><font color="black" size="2" face="Calibri">- embossed paper used to impart design in polyurethane or polyvinyl chloride plastic films for the production of synthetic leather and other textured surfaces. The term also applies to backing paper for self adhesive labels</font></div>

<div><font color="black" size="2" face="Calibri">- return on average capital employed. Operating profit excluding special items divided by average capital employed</font></div>

<div><font color="black" size="2" face="Calibri">- return on average equity. Profit for the period divided by average shareholders’ equity</font></div>

<div><font color="black" size="2" face="Calibri">- return on average net operating assets. Operating profit excluding special items divided by average net operating assets</font></div>

<div><font color="black" size="2" face="Calibri">- kraft paper used to produce multiwall paper sacks</font></div>

<div>- The Green House Gas Protocol defines Scope 1 (direct) and Scope 2 (indirect) emissions as follows:</div> <ul> <li>Direct GHG emissions are emissions from sources that are owned or controlled by the reporting entity</li> <li>Indirect GHG emissions are emissions that are a<br />consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity</li></ul>

<div><font color="black" size="2" face="Calibri">- total assets (excluding deferred taxation and cash) less current liabilities (excluding interest-bearing borrowings and overdraft)</font></div>

<div><font color="black" size="2" face="Calibri">- selling, general and administrative expenses</font></div>

<div><font color="black" size="2" face="Calibri">- a transaction in which Sappi Limited issues shares or share options to group employees as compensation for services rendered</font></div>

<div><font color="black" size="2" face="Calibri">- the ability, directly or indirectly, to participate in, but not exercise control over, the financial and operating policy decisions of an entity so as to obtain economic benefit from its activities</font></div>

<div><font color="black" size="2" face="Calibri">- growing and tending costs of trees in forestry operations</font></div>

<div>- small, medium and micro enterprises</div>

<div>- dry organic and inorganic waste materials</div>

<div><font color="black" size="2" face="Calibri">- 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</font></div>

<div><font color="black" size="2" face="Calibri">- a generic term for a group of papers intended for commercial and industrial use such as flexible packaging, metallised base paper, coated bag paper, etc</font></div>

<div>- when data is expressed in specific form, this means that the actual quality consumed during the year indicated, whether energy, water, emissions or solid waste, is expressed in terms of a production parameter. For Sappi, as with other<br />pulp and paper companies, this parameter is air dry tons of<br />saleable product</div>

<div>- the SFI® programme is a comprehensive system of objectives and performance measures which integrate the sustained growing and harvesting of trees and the protection of plants and animals</div>

<div>- Technical Association of the Pulp and Paper Industry<br />– for the worldwide pulp, paper, packaging, and converting<br />industries</div>

<div><font color="black" size="2" face="Calibri">- pulp produced by processing wood fibres using heat and mechanical grinding or refining wood or wood chips</font></div>

<div><font color="black" size="2" face="Calibri">- term used on this website to denote a metric ton of 1,000kg</font></div>

<div>- refers to bleaching sequences in which no chlorine containing compounds such as chlorine dioxide are used</div>

<div><font color="black" size="2" face="Calibri">- ordinary number of shares in issue (excluding treasury shares held by the group) multiplied by the financial year-end closing prices on the JSE Limited converted to US cents using the closing financial year-end exchange rate</font></div>

<div>- refers to matter suspended or dissolved in effluent</div>

<div><font color="black" size="2" face="Calibri">- gross trade receivables, including receivables securitised, divided by sales multiplied by the number of days in the year</font></div>

<div><font color="black" size="2" face="Calibri">- printing and writing paper made from bleached chemical pulp used for general printing, photocopying and stationery, etc. Referred to as uncoated as it does not contain a layer of pigment to give it a coated surface</font></div>

<div><font color="black" size="2" face="Calibri">- paper made from chemical pulp</font></div>

<div>- the world’s largest conservation organisation, focused on supporting biological diversity</div>