Europe

Shareholders are advised that the integrated report for the year ended September 2012 will be despatched to shareholders commencing on 19 December 2012. The integrated report will also be available online on 10 December 2012 on the Sappi website (www.sappi.com ).

The third financial quarter is seasonally our weakest, due to typically lower demand in Europe and North America and the scheduling of planned annual maintenance shuts at most of our major pulp mills.

2013 was an important transitional year for Sappi with the commissioning of major capital projects and further repositioning of the business. Our strategy to reposition Sappi for growth, higher margins and improved profitability is on track.

The Hunkeler Innovation days in Lucerne, Switzerland are coming up again in exciting times. The media mix is changing drastically and at the same time, new technologies are emerging, enabling great business opportunities for the print industry.

Sappi Fine Paper Europe has announced that it has joined forces with HP to develop coated papers for the high-speed inkjet market. As a result of this cooperation, the two companies are presenting JazTM silk at the Hunkeler Innovationdays in Lucerne, Switzerland between 14th and 17th February.

The group returned to positive earnings in the quarter with an EBITDA excluding special items of US$147 million, an operating profit excluding special items of US$60 million and a profit for the period of US$18 million.

The past quarter saw an improvement in the operating performance of all three of our operating regions, despite tough market conditions overall.

Sappi today confirmed that they have concluded the sale of Sappi’s Usutu Forest Products Company Limited to local Swaziland business Montigny Investments.

Six outstanding marketing campaigns by students from across Europe have won awards from Sappi Fine Paper Europe’s programme Ideas that Matter. For more than ten years, Sappi has supported graphic designers and the non-profit sector with its Ideas That Matter programme.

The Brussels based team at Sappi Fine Paper Europe has once again joined forces with the Agency for Forest and Nature (ANB); this time creating a green corridor that will help to counter commuter pollution.