Slides
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1 Steve Binnie Chief Executive Officer, Sappi Limited 06 November 2025 Q4 FY25 financial results
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2 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. 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 and which do not relate to historical matters, identify forward-looking statements. In addition, this document includes forward-looking statements relating to our potential exposure to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity price risk. 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 adverse changes in global economic conditions; • 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 restructurings or other strategic initiatives, and achieving expected savings and synergies; • currency fluctuations. We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events, circumstances, or otherwise. Regulation G disclosure Certain non-GAAP financial information is contained in this presentation that management believes may be useful in comparing the company’s operating results from period to period. Reconciliations of certain of the non-GAAP measures to the corresponding GAAP measures can be found in the quarterly results booklet for the relevant period. These booklets are available on our website: https://www.sappi.com/quarterly-reports Forward-looking statements and Regulation G disclosure
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• Market conditions declined sharply after a strong start to the financial year • Downward pressure on selling prices across all our market segments • Global paper markets remained oversupplied • Despite these challenges • DWP and packaging and speciality papers volumes increased y-o-y • Market share gains achieved in graphic papers, even as broader market contracted • Completion of the Somerset Mill PM2 conversion and expansion project in North America • In Europe, further progress made towards our strategic rationalisation objectives to improve capacity utilisation 3 FY25 in context A challenging year, marked by ongoing global economic weakness * Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and Adjusted EPS. Operational highlights Markets 684 501 FY24 FY25 Adjusted EBITDA* US$ million 41 8 FY24 FY25 Adjusted EPS* US cents Annual
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4 • Market conditions remained challenging • Sales volume increased q-o-q for Pulp and Packaging and speciality papers • Q-o-q performance benefited from the absence of maintenance shuts • Europe – excess capacity and weak demand • Strategic initiatives to rationalise the business is progressing • North America – modest improvement in profitability q-o-q • South Africa – satisfactory performance amid challenging market conditions Q4 FY25 in context Earnings improved quarter on quarter amid challenging market conditions * Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and Adjusted EPS. Regional update Profitability 226 80 111 Q4 FY24 Q3 FY25 Q4 FY25 Adjusted EBITDA* US$ million 15 -4 -3 Q4 FY24 Q3 FY25 Q4 FY25 Adjusted EPS* US cents Quarter
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5 Adjusted EBITDA* reconciliation Q4 FY24 to Q4 FY25 0 40 80 120 160 200 240 226 (7) (90) (14) (3) 2 (3) 111 5 116 Q4 FY24 Adjusted EBITDA* Sales volume Price & mix Variable & delivery costs Fixed costs Other Currency conversion Q4 FY25 Adjusted EBITDA* Plantation price fair value adjustment Q4 FY25 EBITDA** 1. The following variances were calculated, excluding Sappi Forestry – Sales volume, price & mix, variable & delivery costs and fixed costs. 2. Currency conversion reflects translation and transactional effect on consolidation. * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. ** = Excluding special items. US$ million Significant downward pricing pressure across all product segments
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6 Cost inflation developments Major variable input cost/ton impact since Q1 FY22 Indexed to Q1 FY22. * Q3 FY25 versus Q2 FY25. 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY23 FY24 FY25 Energy Pulp Chemicals Wood Delivery Total variable costs • Variable costs down across all raw material input costs categories, delivery cost/ton flat • In Europe, variable cost per/ton down 3% • In North America, variable cost per/ton down 6% • In South Africa, variable cost per/ton down 6% Quarter-on-quarter*
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1,349 1,632 1,603 1,568 1,557 1,680 1,728 1,501 1,916 1,879 1,977 1,957 2,056 2,070 2,055 1,946 1,917 1,793 1,530 1,163 1,241 1,225 1,176 1,085 1,216 1,366 1,340 1,422 1,406 1,670 1,947 1,920 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20*** Q2 FY20*** Q3 FY20*** Q4 FY20*** Q1 FY21*** Q2 FY21*** Q3 FY21*** Q4 FY21*** Q1 FY22*** Q2 FY22*** Q3 FY22*** Q4 FY22*** Q1 FY23*** Q2 FY23*** Q3 FY23*** Q4 FY23*** Q1 FY24*** Q2 FY24*** Q3 FY24*** Q4 FY24*** Q1 FY25*** Q2 FY25*** Q3 FY25*** Q4 FY25*** US$ million Net debt Net debt/LTM Adjusted EBITDA** 7 Net debt/Adjusted EBITDA* development ~ capex cycle * Adjusted EBITDA = EBITDA excluding special items and Plantation fair value price adjustment. ** The covenant Net debt/LTM Adjusted EBITDA calculation has adjustments and therefore differs from that shown above. *** Quarters impacted by IFRS 16 leases (Q4 FY25 ~US$122m) and Matane Mill acquisition (Q1 FY20 US$158m). Somerset Mill PM1 conversion, Cham and Matane Mill acquisitions Covid pandemic, DWP expansion at Saiccor Mill European closures, Somerset Mill PM2 conversion
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224 46 46 515 21 21 53 352 221 243 87 35 35 17 117 0 100 200 300 400 500 2026 2027 2028 2029 2030 2031 2032-1 2032-2 Short-term SPH term debt Securitisation SSA RCF 8 Debt maturity profile* Fiscal years Proactively engaged with our banks to maintain financial flexibility * Excludes US$122 million in IFRS 16 leases; average time to maturity of approximately four years. Liquidity Debt maturity 219 602 0 100 200 300 400 500 600 700 800 900 Sep-26 US$ million Cash Undrawn RCF 2028 includes EUR400m bond Includes 2032 EUR300m bond 2032 US$221m bond We are making good progress to term-out a large portion of our short-term debt with a new 5-year term facility
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472 1,267 659 550 443 256 761 643 362 155 29 506 210 -306 -369 -600 -400 -200 0 200 400 600 800 1,000 1,200 1,400 2021 2022 2023 2024 2025 US$ million Cash generated from operations Free cash flow** Net cash generated (utilised) 9 Cash flow and capex FY25 capex below previous guidance, FY26 capex estimated at US$290m Cash flow Capital expenditure * To support our commitment to reducing debt, we have adjusted our capital expenditure downward to below US$300 million per annum for the next two year, with no expansionary capex anticipated during this period and FY2026 capex expected to be in the region of US$290 million. ** Free cash flow = Cash generated from operations less working capital, less maintenance and regulatory/environmental capex. 0 100 200 300 400 500 600 2021 2022 2023 2024 2025E* 2026E* 2027E* US$ million Target: <US$300m FY26 estimated at US$290m
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• We are making good progress to term- out a large portion of our short-term debt with a new 5-year term facility • Primary focus in FY2026 will be on accelerating debt reduction • Through our ‘Back to Basics’ focus we are targeting various initiatives to strengthen our balance sheet • Capex reduction of >$200 million vs FY25 • Dividend suspension to preserve cash (FY25 $85 million) • Annual run-rate savings on European initiatives ~$60 million • Strategic focus on reducing operational expenditures across all business units 10 FY25 financial health summary Leverage covenant levels successfully increased for the next 12 months Short-term debt Debt reduction • Recent performance resulted in our leverage ratio increasing close to covenant levels of 4x • Our banking group unanimously supported increasing our leverage covenant levels • Liquidity remains healthy with cash on hand of $219 million and US$602 million from the RCF Financial flexibility
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11 Thrive strategy The guiding principles of our Thrive strategy remains relevant, however, in the current environment our focus is ‘Back to Basics’ • Strengthen our safety-first culture • Continuously improve our cost position • Continue to maximise the benefits of our global footprint • Best-in-class production efficiencies • Improving our understanding of and proactively partnering with all stakeholders • Driving sustainability solutions • Meeting the changing needs of every Sappi employee • Grow dissolving wood pulp capacity to match market demand • Continue to grow packaging and speciality papers in all regions • Further commercialisation of biotech opportunities • Reduce exposure to declining graphic papers business • Target absolute net debt <US$1 billion • Reduce absolute debt level and improve EBITDA* • Optimise capital management • Optimise debt maturity profile and finance charges Drive operational excellence Enhance trust Grow our business Sustain our financial health * Earnings before interest, tax, depreciation and amortisation. ** EBITDA excluding special items.
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12 Our business strategy – Focus is ‘Back to Basics’ • Major investments • Saiccor Mill expansion • Gratkorn Mill PM9 (labels) • Somerset Mill PM2 (SBS) • Graphic capacity closures • Stockstadt Mill closure • Lanaken Mill closure • Various cost improvement projects Thrive investment phase 2020 – 2025 • Driving operational excellence • Ramp-up of production • Achieve production efficiency • Cost savings • Fixed and variable cost savings • European rationalisation $60m* • Group-wide cost savings • Capex management • >$200m reduction vs FY25 • Sustaining our financial health • Net debt reduction • Working capital optimisation • 11% of Net revenue Thrive consolidation phase (Back to Basics) 2026 – 2027/8 • When our stated targets are managed at sustained levels • Dividend payments will resume • Share buy-back opportunities revisited • Growth opportunities explored Thrive advance phase 2028 and beyond * Savings are run-rate per annum savings.
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13 Capital allocation priorities % • Target <US$1 billion net debt • Capex reduction of >US$200m vs FY2025 Focus on reducing leverage • EBITDA growth as we ramp-up Somerset Mill PM2 • ROCE target of WACC +2% consistently • Portfolio optimisation • Sustainability opportunities explored • Match graphic paper capacity to market demand Strategic portfolio optimisation • Re-evaluate dividend once debt target met • Consider share buybacks as a return mechanism dependent on share price Maximise earnings growth Enhanced shareholder return post de-gearing 1 2 4 3 Four key messages to shareholders
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14 Strategic initiatives to rationalise the European business * Savings are run-rate per annum savings. Restructuring cash cost is approximately US$40 million. Closure of PM1 and PM4 Alfeld Mill FTEs 185 Shift and product adaptation Ehingen Mill FTEs 95 Closure of PM2 Kirkniemi Mill FTEs 90 Reflection of the market changes to our manufacturing base Central organisation FTEs 70 Overall profit improvement process underway across the full business spectrum Gratkorn Mill FTEs 100 Consultation process completed in FQ1 Adapting to market realities across our operations … 5 units to reduce costs by … $60m* with reduction of … >500 employees Ongoing through FY26
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15 Segmental overview
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16 Summary Q4 FY25 • Demand for DWP strengthened during the quarter • North American volumes were intentionally reduced • Improved operational stability in South Africa; sales volumes +11% y-o-y • Materially lower prices reduced profitability for the segment Sales tons +2% y-o-y Selling price per ton -12% y-o-y EBITDA* margin 18.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 100 150 200 250 300 350 400 450 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 EBITDA* margin Tons (‘000) Volume EBITDA* margin * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA.
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Summary Q4 FY25 17 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. Sales tons +11% y-o-y Selling price per ton -2% y-o-y EBITDA* margin 3.7% 0% 4% 8% 12% 16% 20% 24% 100 150 200 250 300 350 400 450 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 EBITDA* margin Tons (‘000) Volume EBITDA* margin • Modest recovery in Europe, sales volumes +8% y-o-y • Sales volumes +22% y-o-y in North America; incremental paperboard sales following Somerset PM2 start-up • Strong seasonal demand from citrus market in South Africa • Profitability declined y-o-y due to significant pricing headwinds in all markets
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Summary Q4 FY25 18 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. Sales tons -11% y-o-y Selling price per ton -2% y-o-y EBITDA* margin 6.0% • The North American domestic market tightened, supporting stable prices and healthy graphic paper margins • Europe remained substantially oversupplied • Significant drop in prices y-o-y had a negative impact on profitability 0% 5% 10% 15% 20% 25% 100 200 300 400 500 600 700 800 900 1000 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 EBITDA* margin Tons (‘000) Volume EBITDA* margin
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19 Regional segments Summary Q4 FY25 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. ** Sales tons and price per ton excludes forestry operations. Sappi Europe Sappi North America Sappi Southern Africa Sales tons -2% y-o-y Selling price per ton (EUR) -9% y-o-y EBITDA* margin -1.2% Sales tons -8% y-o-y Selling price per ton (US$) -2% y-o-y EBITDA* margin 6.5% Sales tons** +6% y-o-y Selling price per ton (ZAR) -9% y-o-y EBITDA* margin 21.4% Variable cost per ton (EUR) -7% y-o-y Variable cost per ton (US$) +6% y-o-y Variable cost per ton (ZAR) +3% y-o-y
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20 ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth 2025 TCFD Report Sappi Forests 100% FSC- and PEFC-certified Validated Science-Based GHG reduction target Rated ‘Prime’ by Oekom Research, B- Sappi Southern Africa is a Level 1 broad-based black economic empowerment contributor 2025 Group Sustainability Report2025 Annual Integrated Report MSCI rating BBB Report to the CDP (www.cdp.net/en) under its climate change (2024 B), forest (2024 A-) and water (2024 B) programmes making our responses publicly available on www.sappi.com Available from 12 December 2025 on www.sappi.com/annual-reports
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21 Outlook
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• We anticipate DWP market conditions will remain stable through Q1 FY26 • Packaging and speciality papers sales volumes expected to increase steadily through FY2026 as Somerset Mill PM2 ramp-up progresses in North America • Our strategic focus in the graphic papers segment remains to proactively manage capacity utilisation 22 • Prices for certain of our key raw materials remain relatively low at present; we will actively pursue opportunities for further cost savings • Ongoing trade tensions continue to pose a risk due to their potential impact on global inflation • A maintenance shut is scheduled for Somerset Mill in Q1 FY26; earnings reduction approximately US$20 million • The significant differential between DWP and paper pulp prices, together with subdued textile fibre pricing, could slow the recovery of DWP prices • The continued weakness in global packaging markets present a risk to regional pricing dynamics Demand Pricing Costs Outlook
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23 Outlook continued * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. • Our ‘Back to Basics’ focus is to reduce debt and strengthen the balance sheet • Following the successful conversion of Somerset Mill PM2 in North America and the anticipated capacity reductions in Europe, we are well positioned to meet our customers’ needs while fully utilising our assets to maximise cash generation • The conclusion of restructuring initiatives in Europe is anticipated to occur in Q2 FY26 • We have adjusted our capital expenditure downward to below US$300 million per annum for the next two year, with no expansionary capex anticipated during this period • Capital expenditure for FY2026 is estimated to be ~US$290 million • The board of directors made the decision in FQ3 to suspend the dividend for fiscal 2025 to preserve cash Capital allocationStrategic focus • Taking into account : • The confluence of market factors • The scheduled maintenance shut at Somerset Mill • We anticipate that Adjusted EBITDA* for the first quarter of FY2026 will be below that of the fourth quarter of FY2025 Guidance for Q1 FY26
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24 Thank you
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25 Supplementary information
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26 Adjusted EBITDA and operating profit* * Operating profit excluding special items. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 & 29 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. 98 112 145 177 240 337 371 391 290 167 106 168 130 180 148 226 203 107 80 111 16 31 64 92 161 259 300 318 225 101 41 65 86 116 85 120 132 19 -5 30 -50 0 50 100 150 200 250 300 350 400 450 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 US$ million Adjusted EBITDA* Operating profit excluding special items
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27 Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Pulp 9 - (5) (38) - (17) (16) - Packaging and speciality papers 14 3 9 5 (1) 1 6 4 Graphic papers 3 - (1) 2 - (1) 1 1 Group 26 3 3 (31) (1) (17) (9) 5
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28 Planned shut schedule* FY25 and FY26 * Only major shuts with an EBITDA impact of more than US$5 million. Unit Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Gratkorn Mill X Cloquet Mill X Somerset Mill X X Ngodwana Mill X X Saiccor Mill X X X X o Q2 FY25 shut cost impact was US$78 million • US$58 million for Ngodwana and Saiccor Mills, and US$20 million for Somerset Mill which was project related o Q3 FY25 shut cost impact for Cloquet, Saiccor and Gratkorn Mills was US$30 million, and US$22 million for Somerset Mill which was project related o Q1 FY26 estimated shut cost impact for Somerset Mill is approximately US$20 million
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29 Navigating market cycles: A 10-year view of Returns vs. WACC 0% 5% 10% 15% 20% 25% 30% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10-year Average ROCE - Act WACC - Nominal Pre-tax Target ROCE Target ROCE = 2% above WACC Covid pandemic, DWP expansion at Saiccor Mill
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30 Tariffs Evolving situation • Pulp and chemical purchases from Canada are exempt from tariffs under the USMCA free trade agreement • We purchase a small volume of chemicals from other countries which could be exposed to reciprocal tariffs US raw materials • The US is a net importer of graphic papers and tariffs may create opportunities for Sappi as a domestic producer • Our European business exports approximately 60,000 tons of graphic papers to the US Graphic and packaging papers • Tariffs may create opportunities for Sappi as a domestic producer • The timing of the tariff announcement is also useful as we ramp-up SBS production on PM2 at Somerset Mill • Our European business exports approximately 30,000 tons of packaging and speciality papers to the US Packaging papers ~ SBS
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31 Tariffs continued Evolving situation • Our South African business exports approximately 30,000 tons of DWP to the US • Our US business exports approximately 200,000 tons to other countries, which could be at risk if these countries were to implement reciprocal tariffs • We could mitigate potential impacts by swinging some DWP production at the Cloquet Mill to paper pulp and integrating into our paper operations in the US Dissolving wood pulp • The indirect impact of tariffs on global inflation and the disruption of trade flows could materially weaken consumer demand across all our key markets • In particular, tariffs imposed by the US on textile and apparel manufacturers in China is impacting demand and pricing for DWP Indirect impact
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32 Packaging and speciality papers Production facilities Alfeld Mill (Germany) Flexible packaging paper, label paper, paperboard, silicone base paper, functional paper Carmignano Mill (Italy) Flexible packaging paper, label paper, dye sublimation paper Condino Mill (Italy) Flexible packaging paper, silicone base paper, dye sublimation paper Cloquet Mill (United States) Label paper Bildergebnis für CHAM carmignano Bildergebnis für CHAM Condino Rockwell Solutions (Scotland) Functional paper, flexible packaging paper, coated barrier film Somerset Mill (United States) Label paper, paperboard, flexible packaging paper Tugela Mill (South Africa) Containerboard Westbrook Mill (United States) Casting and release paper Maastricht Mill (Netherlands) Paperboard Ngodwana Mill (South Africa) Containerboard fotomaa Ehingen Mill (Germany) Containerboard Gratkorn Mill (Austria) Label paper
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33 Packaging and speciality papers Product split 12% 7% 25% 7%11%1% 33% 0% 1% 4% FY24 Flexible packaging paper - 12% Label paper - 7% Paperboard - 25% Silicone base paper - 7% Functional paper - 11% Dye sublimation paper - 1% Containerboard - 33% Coated barrier film - 0% Casting and release paper - 1% Other - 4% 11% 7% 29% 7% 11% 1% 30% 0% 1% 4% FY25 Flexible packaging paper - 11% Label paper - 7% Paperboard - 29% Silicone base paper - 7% Functional paper - 11% Dye sublimation paper - 1% Containerboard - 30% Coated barrier film - 0% Casting and release paper - 1% Other - 4%
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34 Product portfolio • Paperboard • Flexible packaging • Containerboard • Dissolving wood pulp • High-yield pulp • Kraft pulp • Biochemicals • Fibrillated cellulose • Lignin • Label & self-adhesive • Casting & release • Dye sublimation • Tissue • Coated woodfree • Coated mechanical • Newsprint • Office
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35 Sappi Europe In local currency (EUR) Q4 FY25 Q3 FY25 Q4 FY24 Tons sold (‘000) 479 479 488 - Packaging and speciality papers 127 124 118 - Graphic papers 352 355 370 Revenue 483 503 541 Price/Ton 1,008 1,050 1,109 Cost/Ton* 1,073 1,090 1,080 Operating profit excluding special items** (31) (19) 14 Adjusted EBITDA** (6) 4 36 Note: The above table is in EUR million and EUR/ton, * Sales less operating profit excluding special items divided by tons sold. ** Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 & 29 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Sappi Europe -5% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 800 900 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Volume EBITDA* margin
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36 Coated paper Deliveries and prices Western Europe* * Western Europe shipments, including export. Source: Cepifine, Cepiprint and RISI indexed to Q1 08. 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 CWF demand MCR demand CWF 100 gsm sheets LWC 60 gsm offset reels
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37 Net pulp integration FY25* Sappi Europe * Based on pulp production capacity. (1,500) (1,200) (900) (600) (300) 0 300 600 900 Europe ‘000 Tons Production capacity Pulp requirement Net pulp purchases
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38 Sappi North America In local currency (USD) Note: The above table is in USD million and USD/ton. * Included in pulp volumes are BCTMP and kraft market pulp volumes of Q4 FY25 – 34 Kt, Q3 FY25 – 25 Kt and Q4 FY24 – 41 Kt. ** Sales less operating profit excluding special items divided by tons sold. *** Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 & 29 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q4 FY25 Q3 FY25 Q4 FY24 Tons sold (‘000) 359 326 389 - Pulp* 92 83 113 - Packaging and speciality papers 159 132 130 - Graphic papers 108 111 146 Revenue 429 404 474 Price/Ton 1,195 1,239 1,219 Cost/Ton** 1,203 1,304 1,098 Operating profit excluding special items*** (3) (21) 47 Adjusted EBITDA*** 28 5 71 Sappi North America 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Volume EBITDA* margin
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39 Coated paper Deliveries and prices United States* * US industry purchases are defined as industry shipments plus imports, less exports. Source: AF&PA and RISI indexed to Q1 08. 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Domestic CWF shipments Domestic CWF purchases RISI price CFS #3 60 lb rolls
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40 SBS Production, shipments and prices United States* Source: AF&PA and RISI indexed to Q1 18. 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Production Shipments RISI price - 16 pt Folding Carton
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41 Net pulp integration FY25* Sappi North America * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. (1,200) (900) (600) (300) 0 300 600 900 1,200 North America ‘000 Tons Production capacity Pulp requirement
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42 Sappi Southern Africa In local currency (ZAR) Note: The above table is in ZAR million and ZAR/ton. * Tons sold, sales and price per ton exclude forestry operations. ** Sales less operating profit excluding special items divided by tons sold. *** Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 28 & 29 in our Q4 FY25 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q4 FY25 Q3 FY25 Q4 FY24 Tons sold* (‘000) 448 391 423 - Pulp 289 261 261 - Packaging and speciality papers 130 106 127 - Graphic papers 29 24 35 Revenue* 6,601 6,023 6,823 Price/Ton* 14,734 15,404 16,130 Cost/Ton** 12,232 13,997 13,853 Operating profit excluding special items*** 1,121 550 963 Adjusted EBITDA*** 1,486 1,172 2,033 Sappi Southern Africa 0% 5% 10% 15% 20% 25% 30% 35% 0 100 200 300 400 500 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Volume EBITDA* margin
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43 Paper pulp Prices Source: FOEX, CCF group, RISI. 400 600 800 1,000 1,200 1,400 1,600 400 600 800 1,000 1,200 1,400 1,600 1,800 2-Jan-18 2-Mar-18 2-May-18 2-Jul-18 2-Sep-18 2-Nov-18 2-Jan-19 2-Mar-19 2-May-19 2-Jul-19 2-Sep-19 2-Nov-19 2-Jan-20 2-Mar-20 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 2-Jan-21 2-Mar-21 2-May-21 2-Jul-21 2-Sep-21 2-Nov-21 2-Jan-22 2-Mar-22 2-May-22 2-Jul-22 2-Sep-22 2-Nov-22 2-Jan-23 2-Mar-23 2-May-23 2-Jul-23 2-Sep-23 2-Nov-23 2-Jan-24 2-Mar-24 2-May-24 2-Jul-24 2-Sep-24 2-Nov-24 2-Jan-25 2-Mar-25 2-May-25 2-Jul-25 2-Sep-25 EUR/ton US$/ton NBSK Europe (US$) BHKP Europe (US$) Net BHKP China (US$) NBSK Europe (EUR) BHKP Europe (EUR) BCTMP, HW, Imports China (US$)
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44 Dissolving pulp Prices Source: CCF Group. 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 Oct 2017 Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 Apr 2025 Jul 2025 US$/ton Imp SW DP Imp HW DP China origin DP
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45 Textile fibre Prices Source: CCF Group. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 Apr 2025 Jul 2025 Oct 2025 US$\ton Cotton 328 Cotton "A" Index PSF 1.4 D VSF 1.2 D VSF 1.5 D
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46 Net pulp integration FY25* Sappi Southern Africa * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. (600) (300) 0 300 600 900 1,200 1,500 1,800 Southern Africa ‘000 Tons Production capacity Pulp requirement Net pulp sales
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47 Cash flow US$m Q4 FY25 Q3 FY25 Q4 FY24 Cash generated from operations 104 55 179 Movement in working capital 59 (22) 73 Closure and restructuring costs paid (3) - (43) Finance costs paid (29) (35) (16) Finance income received 4 3 6 Taxation (paid) refund (16) (4) (20) Dividend paid - - - Cash generated from operating activities 119 (3) 179 Cash utilised in investing activities (83) (133) (214) Capital expenditure (84) (129) (210) Insurance proceeds received 1 - - Proceeds on disposal of assets - - - Proceeds on held-for-sale assets 2 1 - Movements to non-current and intangible assets (2) (5) (4) Net cash generated (utilised) 36 (136) (35)
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48 Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q4 FY25 Q3 FY25 Q4 FY24 Adjusted EBITDA* 111 80 226 Plantation fair value price adjustment 5 (9) (31) EBITDA excluding special items 116 71 195 Depreciation and amortisation (86) (76) (75) Operating profit excluding special items* 30 (5) 120 Special items* – gains (losses) (140) (2) 3 Net restructuring charge (39) (1) 8 Profit (loss) on disposal and written off assets (10) (1) (12) Goodwill impairment (6) - - Asset (impairments) impairment reversal (68) (1) 26 Write down of held-for-sale assets - - - Profit (loss) on disposal of held-for-sale assets - - 10 Written off other assets and expenses (8) - - Insurance - 3 3 Fire, flood, storm and other events (9) (2) (32) Operating profit (110) (7) 123 * Refer to pages 28 & 29 in our Q4 FY25 results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items.
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4949 Sustainability is at the core of our business and work culture. Who we are Every solution we create supports our goal to make everyday products more sustainable. We know that the long-term sustainability of our business will only be ensured by delivering sustained value for our stakeholders. We will be a sustainable business with an exciting future in woodfibre that provides relevant solutions, delivers enhanced value and is a trusted partner to all our stakeholders.
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Summary of FY25 performance against sustainability targets 50 * KPIs included in Sappi’s sustainability linked finance framework. ** SBTi decarbonisation targets included in long term performance share scheme (PSP) from 2024. FY25 snapshot of targets Group People/ Social Safety* LTIFR Safety* LTISR (SSA) Gender diversity Participation in employment survey (PES) % Engaged employees BBBEE (SSA) n/a Principles % Procurement spend with declared Supplier Code of Conduct FY25 snapshot of targets Group Prosperity/ Governance ROCE/RONA New products with sustainability benefits Sustainable forest growth (SSA) n/a Planet/ Environment Specific process water usage (SSA)* n/a Share of renewable energy Energy intensity Specific GHG emission* Specific landfilled solid waste* Certified fibre (%)* Biodiversity (SSA) n/a SBTi targets Scope 1+2** Scope 3 engagement
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51 Logo Description automatically generated with medium confidence • Reduce Scope 1 and Scope 2 GHG emissions by 41.5% per ton of product by 2030 from a 2019 base year.* • 44% of our suppliers by spend will have science-based targets by 2026. * The target boundary includes biogenic emissions and removals from bioenergy feedstocks. Our approved science-based targets
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52 Our Thrive sustainability commitments Creating positive social impact T T T T B T T T T B T T T T T T
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53 2025 Sustainability targets are aligned with United Nation´s Sustainable Development Goals (SDGs) (1) Our baseline year is FY19. What we need to achieve in Sappi Europe between 2021–2025(1): 5.8% Pts increase in the proportion of women in management roles >75% Employees engaged with the business 5% Improvement in specific total energy (GJ/adt) 80% Declared compliance with Sappi Supplier Code of Conduct >85% Participation in employee engagement survey 5% Reduction in solid waste to landfill (ton/adt) Pts increase share of renewable and clean energy 10% year-on-year improvement Safety: Achieve zero harm in the workplace (LTIFR) WACC+2% Return on net operating assets (RONOA) 15 Products launched with defined sustainability benefits 25% Reduction in GHG emissions (ton CO2eq/adt) (Scope 1+2 combined) >78% Certified fibre input 11%
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54 2025 Sustainability targets are aligned with United Nation´s Sustainable Development Goals (SDGs) What we need to achieve in Sappi North America between 2021–2025(1): 4% Pts increase in the proportion of women in management roles >75% Employees engaged with the business 5% Improvement in specific total energy (GJ/adt) 80% Declared compliance with Sappi Supplier Code of Conduct >85% Participation in employee engagement survey 10% Reduction in solid waste to landfill (ton/adt) Share of renewable and clean energy Baseline = 79.1% 10% year-on-year improvement Safety: Achieve zero harm in the workplace (LTIFR) WACC+2% Return on net operating assets (RONOA) 5 Products launched with defined sustainability benefits 5% Reduction in GHG emissions (ton CO2eq/adt) (Scope 1+2 combined) >55% Certified fibre input Within 5% of baseline or higher (1) Our baseline year is FY19.
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55 2025 Sustainability targets are aligned with United Nation´s Sustainable Development Goals (SDGs) What we need to achieve in Sappi Southern Africa between 2021–2025(1): >4 Mt Sustainable annual growth in our plantations 10% Biodiversity improvement on our own forestry landholdings 23% Reduction in specific water use Level 1 BBBEE contributor status 3.1% Pts increase in the proportion of women in management roles >75% Employees engaged with the business 9% Improvement in specific total energy (GJ/adt) 80% Declared compliance with Sappi Supplier Code of Conduct >85% Participation in employee engagement survey 24% Reduction in solid waste to landfill (ton/adt) 7% Pts increase share of renewable and clean energy 10% year-on-year improvement Safety: Achieve zero harm in the workplace (LTIFR) WACC+2% Return on net operating assets (RONOA) 5 Products launched with defined sustainability benefits 20% Reduction in GHG emissions (ton CO2eq/adt) (Scope 1+2 combined) >82% Certified fibre input 21% Reduction in specific purchased fossil energy (1) Our baseline year is FY19.
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56 Sustainability metrics Energy self-sufficiency 25.1% 64.0% 47.7% 45.2% 24.0% 63.8% 42.9% 42.9% 22.6% 61.6% 46.4% 42.9% 22.0% 60.9% 48.1% 44.8% 21.5% 60.5% 50.1% 45.9% 0% 10% 20% 30% 40% 50% 60% 70% EU NA SA Global 2020 2021 2022 2023 2024
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57 Sustainability metrics Renewable and clean energy 39.7% 79.9% 47.8% 54.8% 42.6% 82.2% 44.2% 54.9% 42.6% 78.6% 48.3% 55.0% 49.1% 78.2% 50.3% 58.0% 64.6% 77.4% 52.7% 63.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% EU NA SA Global 2020 2021 2022 2023 2024
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58 Sustainability metrics GHG emissions intensity 719.6 634.6 573.2 545.1 362.3 504.0 403.5 413.5 510.8 483.9 1,750.1 1,854.2 1,799.0 1,716.3 1,638.1 932.6 878.0 829.0 934.7 814.7 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 EU NA SA Global kg CO2e/adt Scope 1 Scope 2
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59 Sustainability metrics Absolute GHG emission 1,924,021 1,850,684 1,813,655 1,013,300 715,591 795,678 720,565 768,857 729,585 730,619 2,667,448 2,957,973 2,933,666 2,919,559 2,771,359 5,387,148 5,529,222 5,516,178 4,662,444 4,217,568 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 EU NA SA Global t CO2e Scope 1 Scope 2
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60 Innovative R&D focus Unlocking the full potential of each tree Chemicals from lignin Binding agent Dispersion agent Emulsion stabiliser Extraction and beneficiation of C5 sugars Xylose Furfural Dissolving wood pulp Textiles Pharmaceuticals Foodstuffs Nanocellulose Reinforcing agent Control release agent Viscosity modifier Casting & release papers Textures for materials Functional films Automotive wraps Packaging papers Product packaging Paperboard Speciality papers Label papers Dye sublimation papers Graphic papers Commercial print and publishing
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61 Thank you