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Steve Binnie Chief Executive Officer , Sappi Limited 06 August 2026 Q3 FY26 financial results و sappi
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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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• Adjusted EBITDA of US$53 million in line with updated guidance • North America delivered improved profitability and operational performance • Pricing pressure, cost inflation and the Ngodwana Mill annual maintenance shut weighed on earnings • The stronger ZAR/US$ exchange rate significantly lowered the profitability of the South African business • US$152 million forestry fair value loss driven by currency movements and higher fuel costs Q3 FY26 in context Improved North American performance partially offset significant market and cost headwinds * Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 29 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and Adjusted EPS. 80 52 53 Q3 FY25 Q2 FY26 Q3 FY26 Adjusted EBITDA* US$ million 6.1 3.9 4.0 Q3 FY25 Q2 FY26 Q3 FY26 Adjusted EBITDA* margin % Quarter Profitability 3
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4 Q3 FY26 in context Earnings headwind: DWP market prices and ZAR/US$ • Realised DWP pricing down versus a year ago • ZAR strengthened 10% against the US$ y-o-y • 1% change in DWP prices has an impact of ~US$11 million on group revenue per annum • 10 cents change in ZAR/US$ exchange rate has an impact of ~US$4 million on group earnings per annum • In South Africa, the pulp segment’s lower US Dollar selling prices and adverse US$/ZAR exchange rate movements continued to create significant headwinds for the business ZAR/US$ exchange rate vs Pulp segment average net selling price 500 550 600 650 700 750 800 850 900 950 1,000 10 11 12 13 14 15 16 17 18 19 20 FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY26 Q1 FY26 Q2 FY26 Q3 US$ / ton US$ / ZAR Exchange rate Pulp segment average NSP
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5 Q3 FY26 in context Dissolving wood pulp market pricing dynamics • Favourable VSF fibre market dynamics driven by strong demand for cellulosic fibres, supported by higher petrochemical costs linked to the Middle East conflict, which placed pressure on competing polyester fibres • High VSF operating rates, strong backlog orders, and low inventories across the value chain sustained the positive DWP pricing momentum from the previous quarter • The hardwood DWP market price increased by US$53 per ton during the quarter, reaching US$898 per ton at quarter end Textile fibre market price Source: CCF Group. 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 Apr 2025 Jul 2025 Oct 2025 Jan 2026 Apr 2026 US$/ton Imp SW DWP Imp HW DWP China origin DWP Source: CCF Group. 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 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 Jan 2026 Apr 2026 CNY\ton Cotton 3128 VSF 1.5D*38mm PSF 1.4D * 38mm Dissolving wood pulp market prices
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6 Q3 FY26 in context Earnings driver: Somerset Mill PM2 ramp-up • Ramp-up of Somerset Mill PM2 continued to gain momentum during the quarter; paperboard sales volumes +63% y-o-y • The machine was able to operate continuously throughout the quarter, albeit at a slower speed than design capacity, enabling operational efficiency improvements • Improving market conditions enabled Sappi and most major domestic competitors to announce paperboard price increases during June and July 2026 • The resulting positive earnings impact is expected to be realised progressively over the coming quarters 0 20 40 60 80 100 120 140 160 180 200 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY26 Q1 FY26 Q2 FY26 Q3 Sales volumes - tons 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY26 Q1 FY26 Q2 FY26 Q3 US$ / ton US$40 – US$60/ton price increase from July Source: AF&PA and Fastmarkets. Record volumes in the quarter SBS market priceSappi North America packaging and speciality papers
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7 Q3 FY26 in context Graphic paper market pricing dynamics • The capacity reduction associated with Somerset Mill PM2 conversion has contributed to a more balanced market in North America, resulting in more stable and resilient coated paper pricing in the region • Industry-wide price increases implemented during the quarter in response to rising input costs helped offset inflationary pressures and supported margins * Western Europe, including export. Source: Cepifine, Cepiprint and Fastmarkets indexed to calendar Q1 19. 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 CWF 100 gsm sheets LWC 60 gsm offset reels * US industry purchases are defined as industry shipments plus imports, less exports. Source: AF&PA and Fastmarkets indexed to Q1 19. 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 RISI price CFS #3 60 lb rolls Western Europe* coated paper pricesUnited States* coated paper prices
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8 Adjusted EBITDA* reconciliation Q3 FY25 to Q3 FY26 (60) (40) (20) 0 20 40 60 80 100 120 80 6 (28) 7 9 (5) (16) 53 Q3 FY25 Adjusted EBITDA* Sales volume Price & mix Variable & delivery costs Fixed costs Other Currency conversion Q3 FY26 Adjusted EBITDA* 1. The following variances were calculated, excluding Sappi Forestry – Sales volume, price & mix, variable & delivery costs and fixed costs. 2. Currency conversion reflects the translation effect on consolidation. * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. US$ million Depressed selling prices across many of our product categories, particularly DWP
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9 Cost inflation developments Major variable input cost/ton impact since Q1 FY22 Indexed to Q1 FY22. * Q3 FY26 versus Q2 FY26. ** In absolute terms. 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 Q2 Q3 FY22 FY23 FY24 FY25 FY26 Energy Pulp Chemicals Wood Delivery Total variable costs • Increasing wood, chemicals and delivery costs • Purchased pulp costs were relatively stable, and energy costs were lower Quarter-on-quarter* Cost outlook • Elevated geopolitical tensions have sustained pressure on energy, chemical and logistics costs, increasing the risk of broader inflationary impacts across our value chains • Relative to Q3 FY26, we anticipate:** • Sulphur +74% • Caustic soda +8% • Latex +4% • Delivery costs +3%
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10 Cost inflation developments Escalating Sulphur costs adversely impacting South African business Sulphur market outlook • The market has tightened severely due to the Strait of Hormuz; 58% of global export volume comes from the Arab Gulf • Sulphur market prices have increased ~330% since the start of FY26 • Latest spot offers are ranging between US$1,100 – US$1,200/ton • Estimated impact of Sulphur price cost escalation on our South African business for FY26 is ~ZAR350 million 0 200 400 600 800 1,000 1,200 1,400 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25 Apr-25 Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26 Aug-26 US$ / metric ton Sulphur market*: Middle East * Import crude Sulphur free on board spot prices.
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11 Cost inflation developments Logistics cost escalation Logistics costs update • The increased fuel shipping surcharges heavily impact our South African logistics costs due to the ongoing Middle East crisis • Substantial increases in diesel prices impact domestic logistics costs • Estimated impact of delivery cost escalation on our South African business for FY26 is ~ZAR106 million World shipping container index Source: Drewry.
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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 1,964 1,997 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 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*** Q2 FY26*** Q3 FY26*** US$ million Net debt Net debt/LTM Adjusted EBITDA** 12 Net debt/Adjusted EBITDA* development Leverage covenant testing remains suspended until March 2027 * 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 (Q3 FY26 ~US$125m). 6.1x 6.5x
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69 45 548 66 66 143 343 221 240 88 37 37 18 171 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 13 Debt maturity profile* Fiscal years Liquidity remained healthy during the quarter * Excludes US$125 million in IFRS 16 leases; average time to maturity of approximately four years. Liquidity Debt maturity 204 579 0 100 200 300 400 500 600 700 800 Jun-26 US$ million Cash Undrawn RCF 2028 includes €400m bond Includes 2032 €300m bond 2032 US$221m bond
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0 100 200 300 400 500 600 2021 2022 2023 2024 2025 2026E* 2027E* US$ million 472 1,267 659 550 443 138 256 761 643 362 155 2929 506 210 -306 -369 -86 -600 -400 -200 0 200 400 600 800 1,000 1,200 1,400 2021 2022 2023 2024 2025 Jun26 - YTD US$ million Cash generated from operations Free cash flow** Net cash generated (utilised) 14 Cash flow and capex Maintaining a disciplined approach to capital allocation 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. Capital expenditure for FY2026 is expected to be approximately US$240 million, which is slightly below our previous guidance of US$250 million. Our disciplined approach to capital allocation remains focused on essential maintenance, regulatory requirements and projects that support operational reliability. This disciplined capital allocation framework, together with our continued focus on cash generation, balance sheet management and liquidity preservation, remains our top priority in the current operating environment. ** Free cash flow = Cash generated from operations less working capital, less maintenance and regulatory/environmental capex. Target: <US$275m FY26 estimated at US$240m
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15 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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Capex • FY26 ~US$240 million < US$275 million target • No expansionary capex for the next two years as asset base is well-invested Working capital discipline • US$19 million inflow in Q3 FY26 Operating discipline through multiple avenues, including ‘Back to Basics’ strategy OpEx savings delivered year-to-date • ~US$120 million as at June 2026 (YTD) European fixed-cost saving initiatives through strategic rationalisation • US$29 million savings as at June 2026 (YTD) Quantified self-help pillars Deleveraging Somerset Mill PM2 ramp-up • PM2 is a world-class asset and the ramp-up is progressing well • Sales traction has been stronger than anticipated • Customer qualifications are ongoing Completing the 50/50 European graphic paper JV with UPM, with target completion by the end of 2026, is a meaningful lever to enhance stability • JV is a structural solution to overcapacity/declining demand – improves resilience and reduces exposure to declining assets Pricing actions/price increases will help deliver growth and capture recovery upside • Hardwood DWP prices currently US$896 per ton • Consumer board market prices in North America also increased by ~US$40-60 per ton Optimise portfolio Disciplined capital allocation 16 Multi-year deleveraging path to restore balance sheet flexibility and expand capacity for reinvestment Reducing absolute debt to achieve the target remains a key priority • Targeting absolute net debt of <US$1bn Net debt/Adjusted EBITDA - 6.5x in Q3 FY26 • Covenant leverage ratio – 6.9x in Q3 FY26 Covenant testing has been suspended until March 2027 Proposed JV with UPM will deliver €90 million in cash Sufficient liquidity for the near- and medium-term underpinned by robust cash balances and an undrawn RCF • Cash - US$204 million • Undrawn RCF - US$579 million
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17 Where Sappi can win through the cycle Leveraging advantaged assets, growth markets and portfolio optimisation to drive resilient earnings growth • Strong packaging and speciality paper assets in North America and South Africa, positioned in structurally growing end markets • Somerset Mill PM2 ramp-up and mix optimisation expected to drive meaningful earnings growth and enhance portfolio quality • Non-integrated supplier model provides customers with flexibility and diversification of supply • South African containerboard demand supported by long-term growth in agricultural exports and fresh produce markets Packaging & speciality papers (Advantaged assets in growing markets driving mix improvement and earnings growth) • South African DWP business benefits from forestry backward integration, creating a durable cost and supply advantage • Leading position in a growing market supported by increasing demand for textile fibres • Non-integrated supplier model provides customers with flexibility and diversification of supply Dissolving wood pulp (Globally competitive, forestry integrated asset base) • Global graphic paper markets remain in structural decline with significant industry overcapacity • Proposed JV with UPM reduces exposure to a shrinking market while preserving value of European assets • Creates a larger, more resilient platform with enhanced scale, cost competitiveness and earnings potential • Enables Sappi to focus capital and management attention on higher-growth businesses while preserving flexibility for potential upside divestment Graphic papers (Reducing exposure to structural decline while maximising value extraction from our assets) ‘Back to Basics’
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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 End of 2026 Target fulfilment or waiver of various conditions precedent 2H 2026 The approval of the transaction by various competition and regulatory authorities; the European merger control process officially entered phase II on 28 April 2026 2H 2026 The applicable notification, negotiation, consultation and approvals in all impacted countries 28 May 2026 Signed transaction agreements and secured bank financing of €600 million for the JV 23 July 2026 Approval of the transaction by Sappi shareholders; strong support with >98% approval Proposed joint venture (JV) with UPM Status – progressing to plan 18
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19 Segmental overview
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Pulp 20 Summary Q3 FY26 • Demand for DWP remained robust • Sales volumes broadly stable y-o-y; average US Dollar selling prices -4% y-o-y • ZAR denominated selling prices in South Africa –11% y-o-y • Hardwood DWP market pricing increased US$53/ton during the quarter, reaching US$898/ton at quarter end • Profitability improved versus the previous quarter Sales tons -1% y-o-y Selling price per ton -4% y-o-y EBITDA* margin 8.3% -5% 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 Q2 26 Q3 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 29 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA.
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Packaging and speciality papers Summary Q3 FY26 21 Sales tons +14% y-o-y Selling price per ton flat y-o-y EBITDA* margin -0.6% -4% 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 Q2 26 Q3 26 EBITDA* margin Tons (‘000) Volume EBITDA* margin • Sales volumes increased by 14% y-o-y; continued commercial ramp-up of Somerset Mill PM2 • Segment profitability declined y-o-y; depressed pricing, higher operating costs and Ngodwana Mill maintenance shut impact • North American paperboard demand improved & stronger Europe label paper sales • South African containerboard prices impacted by low-cost imports and stronger ZAR * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 29 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA.
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Graphic papers Summary Q3 FY26 22 Sales tons -6% y-o-y Selling price per ton flat y-o-y EBITDA* margin 5.4% • Ongoing structural demand weakness and industry overcapacity • Profitability marginally lower y-o-y; lower volumes partially offset by fixed cost savings in Europe and resilient pricing in North America • The Somerset Mill PM2 conversion has contributed to a more balanced North American market, supporting pricing stability in the region • Industry-wide price increases implemented in response to rising input costs helped offset inflationary pressures and supported 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 Q2 26 Q3 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 29 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA.
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23 Regional segments Summary Q3 FY26 * Adjusted EBITDA margin. Refer to the supplementary information in this presentation for a reconciliation of Adjusted EBITDA to reported operating profit and page 29 in our Q3 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 -6% y-o-y Selling price per ton (EUR) -2% y-o-y EBITDA* margin 2.6% Sales tons +17% y-o-y Selling price per ton (US$) -4% y-o-y EBITDA* margin 4.8% Sales tons** -3% y-o-y Selling price per ton (ZAR) -10% y-o-y EBITDA* margin 3.5% Variable cost per ton (EUR) +1% y-o-y Variable cost per ton (US$) -3% y-o-y Variable cost per ton (ZAR) -1% y-o-y Sappi Europe
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24 Outlook
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• Elevated geopolitical tensions have sustained pressure on energy, chemical and logistics costs, increasing the risk of broader inflationary impacts across our value chains • A maintenance shut is scheduled for one of the lines at Saiccor Mill in Q4 FY26; earnings reduction ~US$7 million • Healthy VSF market fundamentals continue to underpin DWP demand • Sentiment in global packaging and speciality paper markets is slowly improving • We remain focused on optimising capacity utilisation and product allocation across our graphic papers asset base • The lag benefit of hardwood DWP price increases realised during the third quarter is expected to support profitability in the fourth quarter • The packaging and speciality papers segment is expected to benefit progressively over coming quarters from recent paperboard price increases in North America Demand Pricing Costs Outlook 25
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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 fixed cost reductions and 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 • Capital expenditure for FY2026 is expected to be ~US$240 million; slightly below previous guidance ~US$250 million • Our disciplined approach to capital allocation remains focused on essential maintenance, regulatory requirements and projects that support operational reliability 26 Outlook continued * Adjusted EBITDA = EBITDA excluding special items and plantation fair value price adjustment. • Q4 FY26 Adjusted EBITDA is expected to be materially above Q3 FY26 • Continued Somerset Mill PM2 ramp-up is expected to support earnings growth • Lower planned maintenance costs anticipated in the quarter • Outlook remains subject to geopolitical uncertainty and global market volatility Strategic focus Capital allocation Guidance for Q4 FY26
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27 Thank you
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28 Supplementary information
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29 Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Pulp - (17) (16) - (9) (91) (104) Packaging and speciality papers (1) 1 6 4 - (10) (46) Graphic papers - (1) 1 1 - - (2) Group (1) (17) (9) 5 (9) (101) (152)
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30 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 shut cost impact for Saiccor Mill was US$10 million • Q3 FY26 shut cost impact for Ngodwana Mill was US$22 million • Q4 FY26 estimated shut cost impact for Saiccor Mill is expected to be approximately US$7 million
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31 Packaging and speciality papers Production facilities Alfeld Mill (Germany) Flexible packaging paper, paperboard, containerboard, release liner, label paper, functional paper Carmignano Mill (Italy) Dye sublimation paper, flexible packaging paper, inkjet paper, label paper Condino Mill (Italy) Dye sublimation paper, flexible packaging paper, inkjet paper, silicone-base paper Cloquet Mill (United States) Label paper Tugela Mill (South Africa) Corrugating medium Westbrook Mill (United States) Converting for speciality casting & release paper Maastricht Mill (Netherlands) Paperboard Ngodwana Mill (South Africa) Kraft linerboard, kraft paper Somerset Mill (United States) Paperboard, label paper Ehingen Mill (Germany) Containerboard Gratkorn Mill (Austria) Label paper Stanger Mill (South Africa) Tissue paper
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32 Product portfolio • Flexible packaging • Paperboard • Containerboard • Dissolving wood pulp (DWP) • High-yield pulp (HYP) • Fibrillated cellulose • Lignosulphonates • Biochemicals • Bioenergy • Label paper and release liner • Casting & release paper • Dye sublimation paper • Tissue paper • Coated woodfree paper • Coated mechanical paper • Uncoated woodfree paper • Newsprint
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33 Sappi Europe In local currency (EUR) Q3 FY26 Q2 FY26 Q3 FY25 Tons sold (‘000) 452 499 479 - Packaging and speciality papers 126 132 124 - Graphic papers 326 367 355 Revenue 466 492 503 Price/Ton 1,031 986 1,050 Cost/Ton* 1,049 996 1,090 Operating profit excluding special items** (8) (5) (19) Adjusted EBITDA** 12 17 4 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 pages 29 & 30 in our Q3 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 Q2 26 Q3 26 Volume EBITDA* margin
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34 Coated paper Deliveries and prices Western Europe* * Western Europe shipments, including export. Source: Cepifine, Cepiprint and Fastmarkets 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 Q1 26 CWF demand MCR demand CWF 100 gsm sheets LWC 60 gsm offset reels
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35 Sappi North America In local currency (US$) Note: The above table is in US$ million and US$/ton. * Included in pulp volumes are BCTMP and kraft market pulp volumes of Q3 FY26 – 34 Kt, Q2 FY26 – 39 Kt and Q3 FY25 – 25 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 pages 29 & 30 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q3 FY26 Q2 FY26 Q3 FY25 Tons sold (‘000) 380 352 326 - Pulp* 89 96 83 - Packaging and speciality papers 186 150 132 - Graphic papers 105 106 111 Revenue 454 420 404 Price/Ton 1,195 1,193 1,239 Cost/Ton** 1,208 1,261 1,304 Operating profit excluding special items*** (5) (24) (21) Adjusted EBITDA*** 22 7 5 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 Q2 26 Q3 26 Volume EBITDA* margin
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36 Coated paper Deliveries and prices United States* * US industry purchases are defined as industry shipments plus imports, less exports. Source: AF&PA and Fastmarkets 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 Q1 26 Domestic CWF shipments Domestic CWF purchases RISI price CFS #3 60 lb rolls
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37 SBS Production, shipments and prices United States* Source: AF&PA and Fastmarkets 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 Q2 26 Q3 26 Production Shipments RISI price - 16 pt folding carton
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38 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 pages 29 & 30 in our Q3 FY26 financial results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items. Q3 FY26 Q2 FY26 Q3 FY25 Tons sold* (‘000) 381 389 391 - Pulp 250 250 261 - Packaging and speciality papers 102 107 106 - Graphic papers 29 32 24 Revenue* 5,277 5,227 6,023 Price/Ton* 13,850 13,437 15,404 Cost/Ton** 21,131 18,054 13,997 Operating profit excluding special items*** (2,774) (1,796) 550 Adjusted EBITDA*** 194 334 1,172 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 Q2 26 Q3 26 Volume EBITDA* margin
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39 Paper pulp Prices Source: FOEX, CCF group, Fastmarkets. 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 2-Mar-26 2-May-26 2-Jul-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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40 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 Jan 2026 Apr 2026 US$/ton Imp SW DWP Imp HW DWP China origin DWP
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41 Textile fibre Prices Source: CCF Group. 0 5,000 10,000 15,000 20,000 25,000 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Jul 2024 Oct 2024 Jan 2025 Apr 2025 Jul 2025 Oct 2025 Jan 2026 Apr 2026 CNY\ton Cotton 3128 VSF 1.5D*38mm PSF 1.4D * 38mm
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42 Cash flow US$m Q3 FY26 Q2 FY26 Q3 FY25 Cash generated from operations 35 40 55 Movement in working capital 19 (7) (22) Closure and restructuring costs paid (11) (10) - Finance costs paid (19) (35) (35) Finance income received 2 2 3 Taxation (paid) refund - 1 (4) Cash generated from operating activities 26 (9) (3) Cash utilised in investing activities (56) (44) (133) Capital expenditure (62) (44) (129) Insurance proceeds received 3 - - Proceeds on disposal of assets - - - Proceeds on held-for-sale assets 3 - 1 Movements to non-current and intangible assets - - (5) Net cash generated (utilised) (30) (53) (136)
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43 Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q3 FY26 Q2 FY26 Q3 FY25 Adjusted EBITDA* 53 52 80 Plantation fair value price adjustment (152) (101) (9) EBITDA excluding special items (99) (49) 71 Depreciation and amortisation (78) (84) (76) Operating profit excluding special items* (177) (133) (5) Special items* – gains (losses) (26) (289) (2) Net restructuring release (charge) - (2) (1) Profit (loss) on disposal and written off assets (1) (2) (1) Goodwill impairment - (48) - Asset (impairments) impairment reversal (15) (219) (1) Profit (loss) on disposal of held-for-sale assets (7) - - Equity accounted investees impairment - (9) - Insurance - - 3 Fire, flood, storm and other events (3) (9) (2) Operating profit (loss) (203) (422) (7) * Refer to pages 29 & 30 in our Q3 FY26 results booklet (available on www.sappi.com) for a definition of Adjusted EBITDA and special items.
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44 • 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 Capital allocation priorities % 1 2 4 3 Four key messages to shareholders
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4545 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 commitment and targets: https://www.sappi.com/sustainable-purpose/our-commitment-and-targets
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46 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 (2026) MSCI rating BBB 2025 TNFD Report 2025 TCFD Report2025 Annual Integrated Report www.sappi.com/investors 2025 Group Sustainability Report www.sappi.com/sustainable-purpose Climate change A- (2024 B) Forests A (2024 A-) Water B (2024 B)
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47 Thank you