Slides
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1 Steve Binnie Chief Executive Officer, Sappi Limited 04 February 2026 Q1 FY26 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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3 Q1 FY26 in context Market conditions remained challenging during the quarter * Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and Adjusted EPS. 203 111 90 Q1 FY25 Q4 FY25 Q1 FY26 Adjusted EBITDA* US$ million 14 -3 -3 Q1 FY25 Q4 FY25 Q1 FY26 Adjusted EPS* US cents Quarter • Adverse impacts weighing on earnings: • Depressed DWP price; y-o-y market price decline of ~$160/ton • Exchange rate movements; Stronger ZAR/USD • Weak paperboard markets in North America resulting in slower ramp-up of Somerset Mill PM2 • Production challenges in North America • Scheduled maintenance shut at Somerset Mill; earnings impact $17 million as guided • Ongoing group-wide strategic cost saving initiatives and the annual energy refunds in Europe partially offset adverse impacts Profitability
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4 Adjusted EBITDA* reconciliation Q1 FY25 to Q1 FY26 0 40 80 120 160 200 240 203 2 (124) 39 (20) (2) (8) 90 (9) 81 Q1 FY25 Adjusted EBITDA* Sales volume Price & mix Variable & delivery costs Fixed costs Other Currency conversion Q1 FY26 Adjusted EBITDA* Plantation price fair value adjustment Q1 FY26 EBITDA** 1. The following variances were calculated, excluding Sappi Forestry – Sales volume, price & mix, variable & delivery costs and fixed costs. 2. Currency conversion reflects translation effect on consolidation. * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. ** = Excluding special items. US$ million Pricing declines across all product segments, particularly DWP Driven largely by planned maintenance shut Functional currencies impacting costs
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5 Cost inflation developments Major variable input cost/ton impact since Q1 FY22 Indexed to Q1 FY22. * Q1 FY26 versus Q4 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 Q1 FY22 FY23 FY24 FY25 FY26 Energy Pulp Chemicals Wood Delivery Total variable costs • Increasing energy and wood costs • Chemical and pulp costs are relatively low • The translation of EUR and ZAR denominated costs into USD has an adverse impact on reported group costs Quarter-on-quarter*
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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 1,951 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 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*** Q1 FY26*** US$ million Net debt Net debt/LTM Adjusted EBITDA** 6 Net debt/Adjusted EBITDA* development * 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 (Q1 FY26 ~US$134m). 6.1x 5.0x
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183 21 46 516 21 21 53 352 221 242 90 36 36 18 117 0 100 200 300 400 500 600 700 800 2026 2027 2028 2029 2030 2031 2032-1 2032-2 Short-term SPH term debt Securitisation SSA RCF 7 Debt maturity profile* Fiscal years Liquidity was well-managed and remained satisfactory * Excludes US$134 million in IFRS 16 leases; average time to maturity of approximately four years. Liquidity Debt maturity 143 608 0 100 200 300 400 500 600 700 800 Dec-25 US$ million Cash Undrawn RCF 2028 includes EUR400m bond Includes 2032 EUR300m bond 2032 US$221m bond A new €200 million 5-year term loan was taken up to repay short-term debt, and funding of this new facility took place in early February 2026 This RCF maturity was extended to January 2031 after quarter-end, at a slightly increased level of €550 million
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472 1,267 659 550 443 63 256 761 643 362 155 3329 506 210 -306 -369 -3 -600 -400 -200 0 200 400 600 800 1,000 1,200 1,400 2021 2022 2023 2024 2025 Dec-25 US$ million Cash generated from operations Free cash flow** Net cash generated (utilised) 8 Cash flow and capex FY26 Capex further reduced to preserve cash 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 years, with no expansionary capex anticipated during this period. FY26 capex has reduced further from US$290 million to approximately US$260 million as we scale back spending to essential maintenance and regulatory activities only, to proactively manage the balance sheet and preserve cash. ** Free cash flow = Cash generated from operations less working capital, less maintenance and regulatory/environmental capex. 0 100 200 300 400 500 600 2021 2022 2023 2024 2025 2026E* 2027E* US$ million Target: <US$300m FY26 estimated at US$260m
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• Through our ‘Back to Basics’ focus we are targeting various initiatives to strengthen our balance sheet including: • Y-o-y Capex reduction of >$200 million to preserve cash • Strategic focus on reducing operational expenditures across all business units; targeted savings for FY26 ~US$120 million to offset lower selling prices and significant weakening of the USD against the ZAR and EUR 9 FY26 financial health summary Proactively engaging with our banks to maintain financial flexibility Short-term debt ‘Back to Basics’ focus • Q1 FY26 Net debt/EBITDA leverage covenant ratio 4.9x • Within the revised covenants agreed with the banks • Liquidity was well-managed • Cash on hand of US$143 million • RCF US$608 million • We are proactively engaging with our banks to maintain financial flexibility during this period of market weakness Financial flexibility • In January 2026, the international RCF was renewed for a new 5-year term, at a slightly increased level of €550 million • A new €200 million 5-year term loan was taken up to repay short-term debt, and funding of this new facility took place in early February 2026 • Liquidity improved further after quarter- end with the increased international RCF and the new term loan Short-term debt
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10 Thrive strategy Our Thrive strategy remains relevant, but current conditions call for a clear ‘Back to Basics’ focus • 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 • Reduce absolute debt level and improve EBITDA* • Target absolute net debt <US$1 billion • 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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11 Strategic initiatives to rationalise the European business * Savings are run-rate per annum savings. Restructuring cash cost is approximately US$40 million. Adapting to market realities across our operations … 5 units to reduce costs by … US$60m* with reduction of … >530 employees Closure of PM1 and PM4 completed Alfeld Mill FTEs 180 Shift and product adaptation completed Ehingen Mill FTEs 87 Closure of PM2 completed Kirkniemi Mill FTEs 87 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 109 Consultation process completed in FQ1 Ongoing through FY26
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Proposed joint venture (JV) with UPM Rationale The proposed transaction represents a significant step forward in Sappi’s Thrive strategy, unlocking the value of Sappi Europe’s graphic papers assets. • Reduces Sappi’s direct exposure to graphic papers markets • Sappi group graphic papers sales volumes post transaction <20% • Sappi’s share of the equity accounted income is anticipated to exceed the EBITDA of the standalone Sappi Europe graphic papers business • Cash proceeds from the transaction will be allocated to reducing debt • JV cash dividends over time will further reduce debt • JV will create a sustainable, standalone business that will provide divestment flexibility in the future Rationale for Sappi shareholders The proposed JV represents a fundamental and necessary step towards securing the long-term viability, competitiveness and resilience of the European graphic papers industry and ensuring security of supply for its customers. • Broader portfolio of assets and paper grades • Flexibility to allocate production to the most cost-efficient sites, leading to structurally leaner cost base – synergies of at least €100 million per annum • Optimised rationalisation of industry capacity • Ability to respond to market changes efficiently, maintaining customer security of supply • Competitive pricing through sharing of value gains • Superior service and geographic and delivery flexibility Rationale for the transaction
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04 December 2025 – Announcement of a non-binding letter of intent with UPM regarding the potential formation of a 50/50 JV for graphic paper in Europe Target completion of the proposed transaction by the end of 2026, subject to the fulfilment or waiver of various conditions precedent The approval of the transaction by various competition and regulatory authorities The applicable notification, negotiation, consultation and approvals in all impacted countries Securing bank financing for the JV and signing of definitive agreements during the first half of 2026 Approval of the circular by the JSE and the approval of the transaction by Sappi shareholders in a general meeting Proposed joint venture (JV) with UPM Timeline 13
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14 Segmental overview
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Pulp 15 Summary Q1 FY26 • Demand for DWP continued to be solid • Improved operational stability in South Africa; sales volumes +15% y-o-y • North American volumes +5% y-o-y • Hardwood DWP market pricing declined $33/ton during the quarter to ~$785/ton; y-o-y decline in DWP market pricing ~$160/ton • Stronger ZAR/USD exchange rate and materially lower prices reduced profitability Sales tons +10% y-o-y Selling price per ton -12% y-o-y EBITDA* margin 9.6% 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 Q1 26 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 25 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA.
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Packaging and speciality papers Summary Q1 FY26 16 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 25 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. Sales tons +6% y-o-y Selling price per ton -4% y-o-y EBITDA* margin 0% 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 Q1 26 EBITDA* margin Tons (‘000) Volume EBITDA* margin • Volume growth in all three regions • Underlying demand for containerboard in South Africa remained healthy • Paperboard markets in North America and Europe continue to be challenged by weak demand • Profitability negatively impacted by lower pricing; higher costs in NA due to planned shut and operational disruptions, and low fixed cost absorption on Somerset PM2
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Graphic papers Summary Q1 FY26 17 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 25 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. Sales tons -9% y-o-y Selling price per ton -2% y-o-y EBITDA* margin 10.1% • Market continued to face significant headwinds with structural decline in demand and overcapacity • Sales volumes declined primarily due to capacity reduction in North America post the conversion of Somerset PM2 to paperboard • North American pricing proved more resilient due to a tighter regional supply- demand balance • Production disruptions in North America impacted margins 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 Q1 26 EBITDA* margin Tons (‘000) Volume EBITDA* margin
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18 Regional segments Summary Q1 FY26 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 25 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA. ** Sales tons and price per ton excludes forestry operations. Sappi North America Sappi Southern Africa Sales tons -1% y-o-y Selling price per ton (EUR) -11% y-o-y EBITDA* margin 7.2% Sales tons -10% y-o-y Selling price per ton (US$) -4% y-o-y EBITDA* margin -0.3% Sales tons** +12% y-o-y Selling price per ton (ZAR) -12% y-o-y EBITDA* margin 13.1% Variable cost per ton (EUR) -6% y-o-y Variable cost per ton (US$) +11% y-o-y Variable cost per ton (ZAR) +3% y-o-y Sappi Europe
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19 ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth 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) MSCI rating BBB 2025 TCFD Report 2025 Group Sustainability Report2025 Annual Integrated Report 2025 TNFD Report https://www.sappi.com/en-za/investors https://www.sappi.com/en-za/sustainable-purpose Climate change A- (2024 B) Forests A (2024 A-) Water B (2024 B)
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20 Outlook
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• We remain focused on closely monitoring external developments while prioritising strong cost discipline • A maintenance shut is scheduled for Saiccor Mill in Q2 FY26; earnings reduction ~US$15 million • Demand for Sappi’s DWP remains robust • Containerboard demand in South Africa is anticipated to be strong in Q2 FY26 • Packaging and speciality papers markets in Europe and North America remain challenging • Graphic papers market conditions are expected to remain steady during the quarter • Seasonal slow-down in China’s textile industry typically creates DWP pricing pressure • However, rising paper pulp prices have narrowed the differential with DWP, while a stronger Renminbi has supported US$ pricing, driving a recent DWP market price recovery to ~US$805/ton • Containerboard selling prices in South Africa are likely to be constrained by soft international markets • Highly competitive pricing environment in North American and European packaging and speciality papers markets Demand Pricing Costs Outlook 21
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• We remain focused on executing the 'Back to Basics’ phase of our Thrive strategy, to reduce debt and strengthen the balance sheet • We are targeting operational efficiency improvements to maintain agility during this period of market weakness • We continue to work towards the completion of the proposed European graphic paper joint venture with UPM • We have further reduced our capital expenditure from US$290 million to approximately US$260 million as we scale back spending to essential maintenance and regulatory activities only, to proactively manage the balance sheet and preserve cash 22 Outlook continued * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. Capital allocation Strategic focus • Taking into account: • The challenging macroeconomic environment • Exchange rate headwinds • Depressed DWP pricing • We anticipate that Adjusted EBITDA* for the second quarter of FY26 will be below that of the first quarter of FY26 Guidance for Q2 FY26
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23 Thank you
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24 Supplementary information
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25 Adjusted EBITDA and operating profit* * Operating profit excluding special items. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 25 & 26 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. 98 112 145 177 240 337 371 391 290 167 106 168 130 180 148 226 203 107 80 111 90 16 31 64 92 161 259 300 318 225 101 41 65 86 116 85 120 132 19 -5 30 -1 -50 0 50 100 150 200 250 300 350 400 450 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 US$ million Adjusted EBITDA* Operating profit excluding special items
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26 Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Pulp - (17) (16) - (9) Packaging and speciality papers (1) 1 6 4 - Graphic papers - (1) 1 1 - Group (1) (17) (9) 5 (9)
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27 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 • 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 • 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 • Q1 FY26 shut cost impact for Somerset Mill was US$17 million • Q2 FY26 estimated shut cost impact for Saiccor Mill is approximately US$15 million
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28 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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29 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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30 Sappi Europe In local currency (EUR) Q1 FY26 Q4 FY25 Q1 FY25 Tons sold (‘000) 461 479 465 - Packaging and speciality papers 110 127 107 - Graphic papers 351 352 358 Revenue 457 483 517 Price/Ton 991 1,008 1,112 Cost/Ton* 970 1,073 1,084 Operating profit excluding special items** 10 (31) 13 Adjusted EBITDA** 33 (6) 35 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 25 & 26 in our Q1 FY26 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 Q1 26 Volume EBITDA* margin
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31 Coated paper Deliveries and prices Western Europe* * Western Europe shipments, including export. Source: Cepifine, Cepiprint and RISI indexed to calendar Q1 19. 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 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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32 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 Q1 FY26 – 31 Kt, Q4 FY25 – 34 Kt and Q1 FY25 – 38 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 25 & 26 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q1 FY26 Q4 FY25 Q1 FY25 Tons sold (‘000) 335 359 371 - Pulp* 100 92 104 - Packaging and speciality papers 132 159 131 - Graphic papers 103 108 136 Revenue 395 429 458 Price/Ton 1,179 1,195 1,235 Cost/Ton** 1,269 1,203 1,108 Operating profit excluding special items*** (30) (3) 47 Adjusted EBITDA*** (1) 28 71 Sappi North America -5% 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 Q1 26 Volume EBITDA* margin
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33 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 19. 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 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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34 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 Q1 26 Production Shipments RISI price - 16 pt folding carton
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35 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 25 & 26 in our Q1 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q1 FY26 Q4 FY25 Q1 FY25 Tons sold* (‘000) 416 448 371 - Pulp 279 289 242 - Packaging and speciality papers 101 130 87 - Graphic papers 36 29 42 Revenue* 5,873 6,601 5,972 Price/Ton* 14,118 14,734 16,097 Cost/Ton** 13,625 12,232 12,771 Operating profit excluding special items*** 205 1,121 1,234 Adjusted EBITDA*** 805 1,486 1,663 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 Q1 26 Volume EBITDA* margin
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36 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-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 2-Nov-25 2-Jan-26 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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37 Dissolving wood 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 1,450 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$/ton Imp SW DWP Imp HW DWP China origin DWP
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38 Textile fibre Prices Source: CCF Group. 0 5,000 10,000 15,000 20,000 25,000 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 Apr 2025 Jul 2025 Oct 2025 CNY\ton Cotton 3128 VSF 1.5D*38mm PSF 1.4D * 38mm
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39 Cash flow US$m Q1 FY26 Q4 FY25 Q1 FY25 Cash generated from operations 63 104 206 Movement in working capital 10 59 (130) Closure and restructuring costs paid (8) (3) (2) Finance costs paid (14) (29) (34) Finance income received 3 4 5 Taxation (paid) refund (1) (16) (49) Cash generated from operating activities 53 119 (4) Cash utilised in investing activities (56) (83) (58) Capital expenditure (56) (84) (101) Insurance proceeds received - 1 - Proceeds on disposal of assets - - 4 Proceeds on held-for-sale assets - 2 43 Movements to non-current and intangible assets - (2) (4) Net cash generated (utilised) (3) 36 (62)
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40 Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q1 FY26 Q4 FY25 Q1 FY25 Adjusted EBITDA* 90 111 203 Plantation fair value price adjustment (9) 5 (1) EBITDA excluding special items 81 116 202 Depreciation and amortisation (82) (86) (70) Operating profit excluding special items* (1) 30 132 Special items* – gains (losses) (17) (140) (11) Net restructuring charge (1) (39) - Profit (loss) on disposal and written off assets (1) (10) 2 Goodwill impairment - (6) - Asset (impairments) impairment reversal - (68) (1) Write down of held-for-sale assets - - (4) Written off other assets and expenses (6) (8) - Fire, flood, storm and other events (9) (9) (8) Operating profit (18) (110) 121 * Refer to pages 25 & 26 in our Q1 FY26 results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items.
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41 Capital allocation priorities % • Target <US$1 billion net debt • Capex reduction of >US$200m vs FY25 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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4242 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. See our 2030 sustainability commitments and targets https://www.sappi.com/en-za/sustainable-purpose/our- commitment-and-targets
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43 Thank you