FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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, 2007

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

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

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

No

X

-------

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

connection with Rule 12g3-2(b): 82-

INCORPORATION BY REFERENCE

Sappi Limited’s report for the conformedthird quarter results ended June 2007, 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 and December 15, 2004 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 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” 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 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 highly cyclical nature of the pulp and paper industry; pulp and paper production,
production capacity, input costs including ra w material, energy and employee costs, and
pricing levels in North America, Europe, Asia and southern Africa; any major disruption in
production at the Group’s key facilities; changes in environmental, tax and other laws and
regulations; adverse changes in the markets for the Group’s products; any delays, unexpected
costs or other problems experienced with any business acquired or to be acquired;
consequences of the Group’s leverage; adverse changes in the South African political situation
and economy or the effect of governmental efforts to address present or future economic or
social problems; and the impact of future investments, acquisitions and dispositions (including
the financing of investments and acquisitions) and any delays, unexpected costs or other
problems experienced in connection with dispositions. 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

quarter results and nine months

ended June 2007

3rd

Form S-8 version

* for the nine months ended June 2007

** estimate as at 30 June 2007

† Rest of World

Sales by product group *

Sales: where the product is manufactured *

Sales: where the product is sold *

Geographic ownership **

■

Coated fine paper

63%

■

Uncoated fine paper

5%

■

Coated specialities

9%

■

Packaging and newsprint

8%

■

Pulp

14%

■

Other

1%

■

North America

29%

■

Europe

40%

■

Southern Africa

15%

■

Asia and other

16%

■

South Africa

66%

■

North America

26%

■

Europe and ROW †

8%

■

North America

28%

■

Europe

46%

■

Southern Africa

26%

Sappi is the world’s leading
producer of coated fine paper

●

EPS 23 US cents

●

Strong Forest Products performance

●

European price realisation disappointing

●

Input cost pressure

●

Underlying operating profit improvement continues

financial highlights

summary

Quarter

Nine months

ended

ended

June

March

June

June

June

2007

2007

2006

2007

2006

Sales (US$ million)

1,297

1,318

1,214

3,882

3,645

Operating profit (US$ million)

87

117

(34)

296

74

Operating profit to sales (%)

6.7

8.9

(2.8)

7.6

2.0

EBITDA (US$ million) *

182

211

62

580

366

EPS (US cents)

23

25

(23)

62

(19)

* Refer to note 1, additional information in Supplemental Information for the reconciliation of EBITDA to profit.

The performance of the business improved significantly in the quarter compared to a year earlier in a

quarter which is usually slower than our second and fourth fiscal quarters. Pulp prices strengthened further,

supporting the strong performance of our Forest Products business. We did not realise the full benefit of

the higher coated fine paper prices in Europe partly as a result of an increase in the volume we exported

from Europe. The North American business had a further recovery in margin for the quarter.

Group sales for the quarter were US$1.3 billion, a 7% increase compared to a year earlier with

improvements from each of the regions.

As a result of storm damage, wood prices in Europe were lower than the previous quarter. Other raw

material input costs and energy costs remained high during the quarter. Our efforts to offset these high

input costs through process and product innovation has helped reduce the impact on our unit costs.

Operating profit for the quarter was US$87 million, compared to a loss of US$34 million a year ago. Our

operating profit margin was 6.7% in the quarter compared to a loss last year and improved on the previous

quarter (excluding the Nash sale in the previous quarter). Tight control of fixed manufacturing costs and

Selling, General and Administration costs and better pricing contributed to this improvement.

We reported a plantation fair value gain of US$15 million before tax in the quarter (last year a loss of

US$23 million) as a result of an increase in wood prices, which was partly offset by increased costs to

delivery of the wood to market following fuel price increases.

During the quarter plantation fires exacerbated by severe weather conditions destroyed large tracts of

timber land in South Africa and approximately 5,000 hectares of timber in our Southern African plantations.

We recorded an after insurance charge of US$7 million before tax for this damage during the quarter.

A charge of US$2 million before tax was taken for damage caused by flooding at Westbrook Mill, USA.

Net finance costs were US$37 million, up US$2 million from a year ago. Net interest paid increased as a

result of higher interest rates and debt levels and an unfavourable change in the value of financial

instruments, partly offset by the capitalisation of interest in respect of the Saiccor expansion project and

favourable foreign exchange gains.

The effective tax rate has reduced as a result of the reduction of deferred tax liabilities by US$14 million

following the German tax rate reduction from 38% to 30%.

Earnings per share for the quarter was 23 US cents compared to a loss of 23 US cents a year ago.

comment

sappi limited – third quarter page 2

sappi limited – third quarter page 3

cash flow

Cash generated by operations improved to US$177 million for the quarter, an increase of US$110 million

compared to a year ago. Working capital increased US$36 million during the quarter compared to a

reduction in working capital of US$16 million during the equivalent quarter last year. We expect a reduction

in working capital during the fourth quarter. Other items impacting cash flow in the quarter were the

US Dollar bonds bi-annual interest payment of US$26 million, pension fund payments of US$34 million and

a German tax settlement payment of US$15 million.

Capital expenditure of US$116 million was US$40 million higher than the previous quarter, as a result of

increased capital expenditure on the Saiccor expansion project. We remain confident we will be able to

finance the Saiccor project from internal cash flow and therefore expect to end the year with a similar level

of debt as at September 2006, excluding the impact of currency movements.

operating review for the quarter

Sappi Fine Paper

Quarter

Quarter

ended

ended

June 2007

June 2006

%

March 2007

US$ million

US$ million

change

US$ million

Sales

1,037

968

7.1

1,057

Operating profit (loss)

25

(18)

–

49

Operating profit (loss) to sales (%)

2.4

(1.9)

–

4.6

Sales volumes increased by 4% compared to a year ago. In Dollar terms prices increased significantly as

a result of the relatively weak US Dollar. In local currency terms average prices realised in the quarter were

slightly down compared to last year’s level in Europe and North America. Margins continued to improve

compared to both a year ago and the previous quarter (excluding the Nash sale in the previous quarter).

Europe

Quarter

Quarter

ended

ended

%

%

June 2007

June 2006

change

change

March 2007

US$ million

US$ million

(US$)

(Euro)

US$ million

Sales

584

536

9.0

1.5

597

Operating profit

14

1

–

–

44

Operating profit to sales (%)

2.4

0.2

–

–

7.4

Sales volumes improved 4% year on year. Our geographic sales mix changed with a greater proportion of
sales to overseas markets and reflected a loss of market share in the European markets.

Average prices realised were affected by the change in geographic mix. Within Western Europe we
achieved higher coated fine paper prices during the quarter, but towards the end of the quarter prices
started to erode.

The European cost reduction programme is progressing well with the reductions helping to offset the high
wood and pulp prices.

North America

Quarter

Quarter

ended

ended

June 2007

June 2006

%

March 2007

US$ million

US$ million

change

US$ million

Sales

362

354

2.3

371

Operating profit (loss)

8

(14)

–

3

Operating profit (loss) to sales (%)

2.2

(4.0)

–

0.8

Apparent consumption in North America for the quarter shows a decline of 13% compared to a year ago
largely as a result of reduced imports. Shipments from local suppliers were about 2% lower.

Our sales volume increased 3% including strong pulp sales in the quarter compared to a year ago.
Average paper prices realised were marginally lower than a year ago mainly as a result of product mix and
slower demand, but pulp prices were substantially higher.

The operating profit margin has continued to recover as a result of improved operating efficiency, but is still
far from an acceptable level. Further plans to improve margins through process and product innovation
are being implemented.

Some price increases were realised on certain grades of coated fine paper and pulp during the quarter.
Further general coated fine paper price increases have been announced for July.

operating review for the quarter (continued)

sappi limited – third quarter page 4

sappi limited – third quarter page 5

South Africa

Quarter

Quarter

ended

ended

%

%

June 2007

June 2006

change

change

March 2007

US$ million

US$ million

(US$)

(Rand)

US$ million

Sales

91

78

16.7

28.3

89

Operating profit (loss)

3

(5)

–

–

2

Operating profit (loss) to sales (%)

3.3

(6.4)

–

–

2.2

The business had a strong sales performance in the quarter. Margins improved slightly but remain under

pressure from the high cost of pulp purchases.

Forest Products

Quarter

Quarter

ended

ended

%

%

June 2007

June 2006

change

change

March 2007

US$ million

US$ million

(US$)

(Rand)

US$ million

Sales

260

246

5.7

16.2

261

Operating profit (loss)

65

(16)

–

–

69

Operating profit (loss) to sales (%)

25.0

(6.5)

–

–

26.4

Plantation fair value gain (loss)

15

(23)

–

–

12

The sales volume of pulp and paper was 3% below a year ago mainly as a result of a major maintenance

shut at Usutu. Prices were strong and sales increased 5% in Dollar terms.

Global demand for pulp, including chemical cellulose and unbleached pulp, was strong. Demand in the

South African economy remains strong for our containerboard and newsprint.

The result for the quarter included the plantation fair value gain of US$15 million. In the equivalent quarter

last year a loss of US$23 million was recorded.

The Saiccor expansion project is progressing well. The expected start-up date for the expansion is

May 2008.

directors

Ralph Boëttger was appointed to the board as Chief Executive Officer of Sappi Limited from July 2007.

He has completed a brief hand over period and will take executive responsibility for the group after this

results announcement.

Wolfgang Pfarl retired as a non-executive director in June 2007 following his retirement as Chief Executive

Officer of Sappi Fine Paper Europe at the end of March 2007.

post balance sheet event

During the weekend of 27 July to 29 July 2007 fires destroyed further large tracts of timber land in

South Africa and Swaziland. The extent of the fire damage to our plantations is being determined and

could be of a similar magnitude to the previous quarter’s fire, which destroyed approximately 2% of our

plantations.

outlook

We see good demand for our products on a global basis and an improving supply demand balance in our

major markets.

The preliminary introduction of countervailing and anti-dumping duties in the USA against certain Asian

importers last quarter is likely to alter the trade flows and to provide some support for improved price levels

in the USA.

The extent of our price increases in Europe has not met our initial expectation and still does not

compensate for the increases in input costs; however, the end of the downward pricing trend and the

continued growth of demand provide the opportunity for further coated fine paper increases. Most of the

industry has announced coated fine paper price increases for September.

We expect the trend of improving underlying earnings to continue next quarter.

On behalf of the Board

E van As

M R Thompson

Director

Director

06 August 2007

sappi limited

(Registration number 1936/008963/06)

Issuer Code: SAVVI

JSE Code: SAP

ISIN Code: ZAE 000006284

operating review for the quarter (continued)

sappi limited – third quarter page 6

forward-looking statements

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. Undue reliance should not be

placed on such statements because, by their nature, they are subject to known and unknown risks and

uncertainties and can be affected by other factors, that could cause actual results and company plans and

objectives to differ materially from those expressed or implied in the forward-looking statements (or from

past results). Such risks, uncertainties and factors 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), adverse changes in the markets for the group’s products, consequences of substantial leverage,

changing regulatory requirements, unanticipated production disruptions, economic and political conditions

in international markets, the impact of investments, acquisitions and dispositions (including related

financing), any delays, unexpected costs or other problems experienced with integrating acquisitions and

achieving expected savings and synergies and currency fluctuations. 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 – third quarter page 7

notes

sappi limited – third quarter page 8

conformed financial results

for the quarter and nine months ended June 2007

sappi limited – third quarter page 9

Form S-8 Version

group income statement

sappi limited – third quarter page 10

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

%

June 2007

June 2006

%

US$ million

US$ million

change

US$ million

US$ million

change

Sales

1,297

1,214

6.8

3,882

3,645

6.5

Cost of sales

1,116

1,142

3,349

3,282

Gross profit

181

72

151.4

533

363

46.8

Selling, general and

administrative expenses

87

98

268

268

Share of (profit) loss from

associates and joint ventures

(2)

–

(6)

1

Other operating expenses

(income)

9

8

(25)

20

Operating profit (loss)

87

(34)

–

296

74

300.0

Net finance costs

37

35

107

93

Net paid

39

35

112

100

Capitalised

(4)

–

(8)

(1)

Net foreign exchange gains

(3)

(1)

(9)

(5)

Change in fair value

of financial instruments

5

1

12

(1)

Profit (loss) before tax

50

(69)

–

189

(19)

–

Taxation – current

17

1

32

16

– deferred

(20)

(17)

16

9

Profit (loss) for the period

53

(53)

–

141

(44)

–

Basic earnings (loss)

per share (US cents)

23

(23)

62

(19)

Weighted average

number of shares

in issue (millions)

227.9

226.3

227.5

226.1

Diluted earnings (loss)

per share (US cents)

23

(23)

61

(19)

Weighted average

number of shares

on fully diluted

basis (millions)

231.4

228.4

230.4

227.9

group balance sheet

June 2007

Sept 2006

US$ million

US$ million

ASSETS

Non-current assets

4,424

3,997

Property, plant and equipment

3,352

3,129

Plantations

628

520

Deferred taxation

57

74

Other non-current assets

387

274

Current assets

1,559

1,500

Inventories

772

699

Trade and other receivables

600

577

Cash and cash equivalents

187

224

Assets held for sale

–

20

Total assets

5,983

5,517

EQUITY AND LIABILITIES

Shareholders’ equity

Ordinary shareholders’ interest

1,635

1,386

Non-current liabilities

2,505

2,465

Interest-bearing borrowings

1,623

1,634

Deferred taxation

370

336

Other non-current liabilities

512

495

Current liabilities

1,843

1,666

Interest-bearing borrowings

854

694

Bank overdraft

23

9

Other current liabilities

842

862

Taxation payable

124

101

Total equity and liabilities

5,983

5,517

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

228.5

227.0

sappi limited – third quarter page 11

group cash flow statement

sappi limited – third quarter page 12

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

Operating profit (loss)

87

(34)

296

74

Depreciation, fellings and other amortisation

113

116

336

347

Other non-cash items (including impairment

charges)

(23)

(15)

(128)

(115)

Cash generated by operations

177

67

504

306

Movement in working capital

(36)

16

(80)

(97)

Net finance costs

(42)

(48)

(110)

(116)

Taxation paid

(15)

–

(18)

(12)

Dividends paid *

–

–

(68)

(68)

Cash retained from operating activities

84

35

228

13

Cash effects of investing activities

(154)

(94)

(345)

(246)

(70)

(59)

(117)

(233)

Cash effects of financing activities

19

31

74

34

Net movement in cash and cash equivalents

(51)

(28)

(43)

(199)

* Dividend number 83: 30 US cents per share (2006: 30 US cents per share)

group statement of recognised income and expense

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

Pension fund asset recognised

(not recognised)

48

(2)

44

(6)

Actuarial losses on pension and

other post employment benefit liabilities

–

(5)

–

(5)

Deferred taxation on above items

(13)

–

(14)

1

Valuation allowance against deferred

tax asset and actuarial losses recognised

–

–

5

–

Exchange differences on translation of

foreign operations

45

(142)

123

(122)

Net income (expense) recorded directly

in equity

80

(149)

158

(132)

Profit (loss) for the period

53

(53)

141

(44)

Total recognised income (expense) for

the period

133

(202)

299

(176)

notes to the group results

sappi limited – third quarter page 13

1.

Basis of preparation

The condensed financial statements have been prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting. The accounting policies and methods of computation used in the
preparation of the results are consistent, in all material respects, with those used in the annual financial
statements for September 2006 which are compliant with the English language version of International
Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board.
These results are unaudited.

2.

Reconciliation of movement in shareholders’ equity

Nine months

Nine months

ended

ended

June 2007

June 2006

US$ million

US$ million

Balance – beginning of year

1,386

1,589

Total recognised income (expense) for the period

299

(176)

Dividends paid

(68)

(68)

Transfers to participants of the share purchase trust

14

2

Share Based Payment Reserve

4

7

Balance – end of period

1,635

1,354

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

3.

Operating profit

Included in operating profit are the following

non-cash items:

Depreciation and amortisation

Depreciation of property,

plant and equipment

95

96

283

291

Other amortisation

–

–

1

1

95

96

284

292

Fair value adjustment on plantations

(included in cost of sales)

Changes in volume

Fellings

18

20

52

55

Growth

(22)

(21)

(57)

(56)

(4)

(1)

(5)

(1)

Changes in fair value

(15)

23

(56)

(44)

(19)

22

(61)

(45)

Included in other operating expenses

(income) are the following:

Asset impairments

–

2

1

8

Restructuring provision (released) raised

(1)

–

(11)

3

Profit on sale of assets

–

–

(25)

(2)

Written off assets

1

7

1

7

Flood and fire damage

9

–

9

–

notes to the group results (continued)

sappi limited – third quarter page 14

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

4.

Capital expenditure

Property, plant and equipment

116

74

330

213

June 2007

Sept 2006

US$ million

US$ million

5.

Capital commitments

Contracted but not provided

241

294

Approved but not contracted

171

255

412

549

6.

Contingent liabilities

Guarantees and suretyships

53

52

Other contingent liabilities

16

11

supplemental information

additional information

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

1. Profit (loss) for the period to EBITDA

(1)

reconciliation

Profit (loss) for the period

53

(53)

141

(44)

Net finance costs

37

35

107

93

Taxation – current

17

1

32

16

– deferred

(20)

(17)

16

9

Depreciation

95

96

283

291

Amortisation

–

–

1

1

EBITDA

(1) (2)

182

62

580

366

June 2007

Sept 2006

US$ million

US$ million

Net debt (US$ million)

(3)

2,313

2,113

Net debt to total capitalisation (%)

(3)

46.1

46.4

Net asset value per share (US$)

(3)

8.53

7.26

(1)

In connection with the U.S. Securities Exchange Commission (“SEC”) rules relating to “Conditions for Use of Non-GAAP
Financial Measures”, we have reconciled EBITDA to net profit rather than operating profit. As a result our definition retains
non-trading profit/loss and minority interest as part of EBITDA. EBITDA represents earnings before interest (net finance
costs), taxation, depreciation and amortisation. Net finance costs includes: gross interest paid; interest received; interest
capitalised; net foreign exchange gains; and net fair value adjustments on interest rate financial instruments. See the Group
income statement for an explanation of the computation of net finance costs. We use EBITDA as an internal measure of
performance to benchmark and compare performance, both between our own operations and as against other companies.
EBITDA is a measure used by the group, together with measures of performance under IFRS and US GAAP, to compare
the relative performance of operations in planning, budgeting and reviewing the performances of various businesses. We
believe EBITDA is a useful and commonly used measure of financial performance in addition to net profit, operating profit
and other profitability measures under IFRS or US GAAP because it facilitates operating performance comparisons from
period to period and company to company. By eliminating potential differences in results of operations between periods or
companies caused by factors such as depreciation and amortisation methods, historic cost and age of assets, financing
and capital structures and taxation positions or regimes, we believe EBITDA can provide a useful additional basis for
comparing the current performance of the underlying operations being evaluated. For these reasons, we believe EBITDA
and similar measures are regularly used by the investment community as a means of comp arison of companies in our
industry. Different companies and analysts may calculate EBITDA differently, so making comparisons among companies on
this basis should be done very carefully. EBITDA is not a measure of performance under IFRS or US GAAP and should not
be considered in isolation or construed as a substitute for operating profit or net profit as an indicator of the company’s
operations in accordance with IFRS or US GAAP.

(2)

The EBITDA calculation was amended at the beginning of the financial year to eliminate the adjustment for fellings which
previously resulted in fellings being added back in the calculation as part of amortisation. Given the current accounting
treatment of plantations, management has concluded that eliminating such an adjustment would be more appropriate in
determining the EBITDA performance measure in future both for internal and reporting purposes. Prior year figures have
been recalculated for comparison purposes as follows: June 2006 quarter: decreased by US$20 million; June 2006 year
to date: decreased by US$55 million.

sappi limited – third quarter page 15

supplemental information

sappi limited – third quarter page 16

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

US$ million

US$ million

US$ million

US$ million

2. Calculation of Headline earnings (loss) *

Profit (loss) for the period

53

(53)

141

(44)

Profit on disposal of business and property,

plant and equipment

(1)

–

(20)

(2)

Write-off of assets

1

5

1

7

Impairment of property, plant and equipment

1

3

1

8

Headline earnings (loss)

54

(45)

123

(31)

Headline earnings (loss) per share

Headline earnings (loss) per share

(US cents) *

24

(20)

54

(14)

Weighted average number of shares

in issue (millions)

227.9

226.3

227.5

226.1

Diluted headline earnings (loss) per share

(US cents) *

23

(20)

53

(14)

Weighted average number of shares

on fully diluted basis (millions)

231.4

228.4

230.4

227.9

* Headline earnings disclosure is required by the JSE Limited.

3. Exchange rates

June

March

Dec

Sept

June

2007

2007

2006

2006

2006

Exchange rates:

Period end rate: US$1 = ZAR

7.0393

7.2650

7.0076

7.7738

7.1700

Average rate for the Quarter: US$1 = ZAR

7.1095

7.1532

7.3358

7.2475

6.4658

Average rate for the YTD: US$1 = ZAR

7.2121

7.2783

7.3358

6.6039

6.4031

Period end rate: EUR 1 = US$

1.3542

1.3358

1.3199

1.2672

1.2789

Average rate for the Quarter: EUR 1 = US$

1.3498

1.3160

1.2926

1.2744

1.2570

Average rate for the YTD: EUR 1 = US$

1.3178

1.3021

1.2926

1.2315

1.2191

The financial results of entities with reporting currencies other than the US Dollar are translated into 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.

supplemental information

sappi limited – third quarter page 17

regional information

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

June 2007

June 2006

Metric tons

Metric tons

%

Metric tons

Metric tons

%

(000’s)

(000’s) change

(000’s)

(000’s) change

Sales volumes

Fine Paper –

North America

360

349

3.2

1,108

1,058

4.7

Europe

599

576

4.0

1,860

1,824

2.0

Southern Africa

86

79

8.9

260

237

9.7

Total

1,045

1,004

4.1

3,228

3,119

3.5

Forest Products – Pulp and paper

operations

358

368

(2.7)

1,067

1,070

(0.3)

Forestry operations

259

394

(34.3)

788

1,142

(31.0)

Total

1,662

1,766

(5.9)

5,083

5,331

(4.7)

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

%

June 2007

June 2006

%

US$ million

US$ million

change

US$ million

US$ million change

Sales

Fine Paper –

North America

362

354

2.3

1,107

1,066

3.8

Europe

584

536

9.0

1,768

1,625

8.8

Southern Africa

91

78

16.7

263

238

10.5

Total

1,037

968

7.1

3,138

2,929

7.1

Forest Products – Pulp and paper

operations

242

224

8.0

694

651

6.6

Forestry operations

18

22

(18.2)

50

65

(23.1)

Total

1,297

1,214

6.8

3,882

3,645

6.5

supplemental information

sappi limited – third quarter page 18

Quarter

Quarter

Nine months

Nine months

ended

ended

ended

ended

June 2007

June 2006

%

June 2007

June 2006

%

US$ million

US$ million

change

US$ million

US$ million change

Operating profit

Fine Paper –

North America

8

(14)

–

13

(23)

–

Europe

14

1

–

71

21

238.1

Southern Africa

3

(5)

–

6

(7)

–

Total

25

(18)

–

90

(9)

–

Forest Products

65

(16)

–

212

90

135.6

Corporate

(3)

–

–

(6)

(7)

–

Total

87

(34)

–

296

74

300.0

sappi ordinary shares

ADR price (NYSE TICKER: SPP)

note : (1ADR = 1 sappi share)

ZAR

140

120

100

80

60

40

20

0

1 Jul
2003

1 Oct

2003

1 Jan

2004

1 Apr

2004

1 Jul
2004

1 Oct

2004

1 Jan

2005

1 Apr

2005

1 Jul
2005

1 Oct

2005

1 Jan

2006

1 Apr

2006

1 Jul
2006

1 Oct

2006

1 Jan

2007

1 Apr

2007

1 Jul
2007

26 Jul

2007

1 Jul
2003

1 Oct

2003

1 Jan

2004

1 Apr

2004

1 Jul
2004

1 Oct

2004

1 Jan

2005

1 Apr

2005

1 Jul
2005

1 Oct

2005

1 Jan

2006

1 Apr

2006

1 Jul
2006

1 Oct

2006

1 Jan

2007

1 Apr

2007

1 Jul
2007

26 Jul

2007

US$

20

18

16

14

12

10

8

6

4

2

0

sappi limited – third quarter page 19

this report is available on the Sappi website

www.sappi.com

Other interested parties can obtain printed copies of this report from:

South Africa:

United States

United Kingdom:

Computershare Investor

ADR Depository:

Capita Registrars

Services 2004 Limited

The Bank of New York

The Registry

70 Marshall Street

Investor Relations

34 Beckenham Road

Johannesburg 2001

PO Box 11258

Beckenham, Kent

PO Box 61051

Church Street Station

BR3 4TU, DX 91750

Marshalltown 2107

New York, NY 10286-1258

Beckenham West

Tel +27 (0)11 370 5000

Tel +1 610 382 7836

Tel +44 (0)208 639 2157

Printed on Magno Matt Satin 250g/m

2

and 150g/m

2

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: August 9, 2007

SAPPI LIMITED,

by

: /s/ M. R. Thompson

Title:

Chief Financial Officer

Name: M. R. Thompson