Slide 1: Q1 FY26 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 04 February 2026 Q1 FY26 financial results 1
Slide 2: Forward-looking statements and Regulation G disclosure
Forward-looking statements and Regulation G disclosure 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 indicat
Slide 3: Q1 FY26 in context: Market conditions remained challenging
Q1 FY26 in context Market conditions remained challenging during the quarter Profitability Quarter Adjusted EBITDA* Adjusted EPS* US$ million US cents • Adverse impacts weighing on earnings: 203 14 • Depressed DWP price; y-o-y market price decline of ~$160/ton • Exchange rate movements; Stronger ZAR
Slide 4: Adjusted EBITDA reconciliation Q1 FY25 to Q1 FY26
Adjusted EBITDA* reconciliation Q1 FY25 to Q1 FY26 240 Pricing declines across all product 200 segments, particularly DWP 160 Driven largely by planned US$ million maintenance shut 120 80 Functional currencies impacting costs 40 0 203 2 (124) 39 (20) (2) (8) 90 (9) 81 Q1 FY25 Adjusted Sales volume P
Slide 5: Cost inflation developments
Cost inflation developments Major variable input cost/ton impact since Q1 FY22 1.8 Quarter-on-quarter* 1.6 • Increasing energy and wood costs 1.4 • Chemical and pulp costs are relatively low • The translation of EUR and ZAR denominated costs into USD has an 1.2 adverse impact on reported group costs
Slide 6: Net debt/Adjusted EBITDA development
Net debt/Adjusted EBITDA* development 6.1x 2,600 7.0 2,400 6.0 5.0x 2,200 5.0 2,000 2,070 2,056 2,055 US$ million 4.0 1,951 1,947 1,946 1,920 1,917 1,800 1,793 3.0 1,600 1,670 2.0 1,530 1,400 1,176 1,422 1,163 1,406 1,366 1,085 1,340 1,200 1.0 1,241 1,225 1,216 1,000 0.0 Q1 FY21*** Q2 FY21*** Q3 FY2
Slide 7: Debt maturity profile and liquidity
Debt maturity profile* Fiscal years Liquidity was well-managed and remained satisfactory Liquidity Debt maturity 800 800 700 700 600 600 2028 includes 516 EUR400m bond A new €200 million US$ million 500 500 5-year term loan was Includes 2032 taken up to repay EUR300m bond 608 short-term debt, and 35
Slide 8: Cash flow and capex
Cash flow and capex FY26 Capex further reduced to preserve cash Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 659 400 US$ million 643 Target: <US$300m 600 550 FY26 estimated at 472 506 US$260m US$ million 443 400 362 300 256 210 200 155 29 63 33 200 0 -3 -200 100 -400 -306 -3
Slide 9: FY26 financial health summary
FY26 financial health summary Proactively engaging with our banks to maintain financial flexibility Financial Short-term Short-term ‘Back to Basics’ flexibility debt debt focus • Q1 FY26 Net debt/EBITDA leverage • In January 2026, the international RCF • Through our ‘Back to Basics’ focus we covenan
Slide 10: Thrive strategy: 'Back to Basics' focus
Thrive strategy Our Thrive strategy remains relevant, but current conditions call for a clear ‘Back to Basics’ focus • Strengthen our safety-first culture Drive operational • Continuously improve our cost position • Continue to maximise the benefits of our global footprint excellence • Best-in-class
Slide 11: Strategic initiatives to rationalise the European business
Strategic initiatives to rationalise the European business Adapting to market realities across our operations … 5 US$60m* >530 units to reduce costs by … with reduction of … employees Alfeld Mill Ehingen Mill Kirkniemi Mill Gratkorn Mill Central organisation Consultation process completed in FQ1 Ong
Slide 12: Proposed joint venture with UPM: Rationale
Proposed joint venture (JV) with UPM Rationale Rationale for the Rationale for Sappi transaction shareholders The proposed JV represents a fundamental and necessary step The proposed transaction represents a significant step forward towards securing the long-term viability, competitiveness and in Sa
Slide 13: Proposed joint venture with UPM: Timeline
Proposed joint venture (JV) with UPM Timeline 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 Securing bank financing for the JV and signing of definitive agreements during the first half of 2026 A
Slide 14: Segmental overview
Segmental overview 14
Slide 15: Pulp: Summary Q1 FY26
Summary Q1 FY26 Pulp Sales tons Selling price per ton EBITDA* margin +10% y-o-y -12% y-o-y 9.6% 450 40% 400 35% 30% EBITDA* margin 350 25% Tons (‘000) 300 20% 250 15% 200 10% 150 5% 100 0% 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
Slide 16: Packaging and speciality papers: Summary Q1 FY26
Summary Q1 FY26 Packaging and Sales tons Selling price per ton EBITDA* margin speciality papers +6% y-o-y -4% y-o-y 0% 450 24% 400 20% EBITDA* margin 350 16% Tons (‘000) 300 12% 250 8% 200 150 4% 100 0% 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 Q
Slide 17: Graphic papers: Summary Q1 FY26
Summary Q1 FY26 Graphic Sales tons Selling price per ton EBITDA* margin papers -9% y-o-y -2% y-o-y 10.1% 1000 25% 900 800 20% EBITDA* margin 700 Tons (‘000) 15% 600 500 10% 400 300 5% 200 100 0% 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
Slide 18: Regional segments: Summary Q1 FY26
Regional segments Summary Q1 FY26 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** -1% y-o-y -10% y-o-y +12% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -11% y-o-y -4% y-o-y -12% y-o-y Variable cost per ton (EUR)
Slide 19: ESG: Our commitment to sustainable growth
ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth Validated Science-Based GHG reduction target 2025 Annual 2025 TCFD Report 2025 TNFD Report 2025 Group Sustainability Report Integrated Report https://www.sappi.com/en-za/investors https://www.sappi.com/en-
Slide 20: Outlook
Outlook 20
Slide 21: Outlook
Outlook Demand Pricing Costs • Demand for Sappi’s DWP remains robust • Seasonal slow-down in China’s textile • We remain focused on closely monitoring • Containerboard demand in South Africa is industry typically creates DWP pricing external developments while prioritising anticipated to be strong i
Slide 22: Outlook continued
Outlook continued Strategic Capital Guidance for focus allocation Q2 FY26 • We remain focused on executing the • We have further reduced our capital • Taking into account: 'Back to Basics’ phase of our Thrive expenditure from US$290 million to • The challenging macroeconomic strategy, to reduce debt
Slide 23: Thank you
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Slide 24: Supplementary information
Supplementary information 24
Slide 25: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit* 450 391 371 400 337 318 350 300 290 300 259 240 US$ million 226 225 250 203 180 177 168 167 200 161 148 145 132 130 120 150 116 112 111 107 106 101 98 92 90 86 85 80 100 65 64 41 31 30 50 19 16 0 -1 -5 -50 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22
Slide 26: Plantation fair value price adjustment: Segment split
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) 26
Slide 27: Planned shut schedule FY25 and FY26
Planned shut schedule* FY25 and FY26 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 mil
Slide 28: Packaging and speciality papers production facilities
Packaging and speciality papers Production facilities Alfeld Mill (Germany) Ehingen Mill (Germany) Rockwell Solutions (Scotland) Flexible packaging paper, label Containerboard Functional paper, flexible packaging paper, paperboard, silicone base paper, coated barrier film paper, functional paper Bil
Slide 29: Product portfolio
Product portfolio • Paperboard • Label & self-adhesive • Coated woodfree • Dissolving wood pulp • Biochemicals • Flexible packaging • Casting & release • Coated mechanical • High-yield pulp • Fibrillated cellulose • Containerboard • Dye sublimation • Newsprint • Kraft pulp • Lignin • Tissue • Office
Slide 30: Sappi Europe in local currency (EUR)
Sappi Europe In local currency (EUR) Q1 FY26 Q4 FY25 Q1 FY25 Sappi Europe Tons sold (‘000) 461 479 465 - Packaging and speciality papers 110 127 107 900 25% 800 20% - Graphic papers 351 352 358 700 600 15% 500 Revenue 457 483 517 400 10% 300 5% Price/Ton 991 1,008 1,112 200 0% 100 0 -5% Cost/Ton* 97
Slide 31: Coated paper deliveries and prices Western Europe
Coated paper Deliveries and prices Western Europe* 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 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 * Western Europe shipments, including export. Source: Cepifine, Cepiprint an
Slide 32: Sappi North America in local currency (USD)
Sappi North America In local currency (USD) Q1 FY26 Q4 FY25 Q1 FY25 Sappi North America Tons sold (‘000) 335 359 371 - Pulp* 100 92 104 500 25% - Packaging and speciality papers 132 159 131 400 20% 15% - Graphic papers 103 108 136 300 10% 200 Revenue 395 429 458 5% 100 0% Price/Ton 1,179 1,195 1,235
Slide 33: Coated paper deliveries and prices United States
Coated paper Deliveries and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 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 * US industry purchases are defined as industry shipments plus imports, less
Slide 34: SBS production, shipments and prices United States
SBS Production, shipments and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 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 Shi
Slide 35: Sappi Southern Africa in local currency (ZAR)
Sappi Southern Africa In local currency (ZAR) Q1 FY26 Q4 FY25 Q1 FY25 Sappi Southern Africa Tons sold* (‘000) 416 448 371 - Pulp 279 289 242 500 35% - Packaging and speciality papers 101 130 87 400 30% 25% - Graphic papers 36 29 42 300 20% 200 15% Revenue* 5,873 6,601 5,972 10% 100 Price/Ton* 14,118
Slide 36: Paper pulp prices
US$/ton 1,000 1,400 1,600 1,800 1,200 400 600 800 2-Jan-19 2-Mar-19 2-May-19 2-Jul-19 Source: FOEX, CCF group, RISI. 2-Sep-19 2-Nov-19 2-Jan-20 2-Mar-20 Paper pulp Prices 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 NBSK Europe (US$) NBSK Europe (EUR) 2-Jan-21 2-Mar-21 2-May-21 2-Jul-21 2-Sep-21 2-Nov-21 2-J
Slide 37: Dissolving wood pulp prices
US$/ton 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 600 650 700 750 800 850 900 950 Jan 2019 Source: CCF Group. Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Imp SW DWP Apr 2021 Dissolving wood pulp Prices Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Imp HW
Slide 38: Textile fibre prices
CNY\ton 5,000 0 10,000 15,000 20,000 25,000 Jan 2019 Source: CCF Group. Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Textile fibre Prices Jul 2020 Oct 2020 Jan 2021 Cotton 3128 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 VSF 1.5D*38mm Oct 2022 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 A
Slide 39: Cash flow
Cash flow US$m Q1 FY26 Q4 FY25 Q1 FY25 Cash generated from operations 63 104 206 Movement in working capital 10 59 (130) Closure and restructuring costs paid (8) (3) (2) Finance costs paid (14) (29) (34) Finance income received 3 4 5 Taxation (paid) refund (1) (16) (49) Cash generated from operating
Slide 40: Earnings reconciliation to reported operating profit
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$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
Slide 41: Four key messages to shareholders
Four key messages to shareholders Focus on reducing Maximise earnings leverage growth 1 2 • Target <US$1 billion net debt • EBITDA growth as we ramp-up Somerset Mill PM2 • Capex reduction of >US$200m vs FY25 • ROCE target of WACC +2% consistently Capital allocation Strategic portfolio priorities Enh
Slide 42: Who we are
Who we are Sustainability is at the core of our business and work culture. 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
Slide 43: Thank you
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