Slide 1: Q3 FY25 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 07 August 2025 Q3 FY25 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: Q3 FY25 in context
Q3 FY25 in context A challenging quarter, marked by ongoing global economic weakness Quarter Operational Profitability Adjusted EBITDA* Adjusted EPS* update US$ million US cents 148 9 • Ongoing global economic weakness • Somerset Mill PM2 conversion and from trade and tariff tensions expansion proje
Slide 4: FY25 summary: strategic investment cycle completed
FY25 summary Strategic investment cycle completed Last 12 months Leverage & Strategic focus Cash generated from Net debt/Adjusted net debt operations EBITDA** US$ million 3.2 518 • Leverage ratio typically fluctuates in line • Our strategy is to target an absolute net with capex cycle debt level of
Slide 5: Adjusted EBITDA reconciliation Q3 FY24 to Q3 FY25
Adjusted EBITDA* reconciliation Q3 FY24 to Q3 FY25 160 140 120 US$ million 100 80 60 40 20 0 148 (22) (22) (17) 7 (13) (1) 80 (9) 71 Q3 FY24 Adjusted Somerset PM2 Price & mix Variable & Fixed costs Other Currency Q3 FY25 Adjusted Plantation price Q3 FY25 EBITDA* delivery costs conversion EBITDA* fai
Slide 6: Cost inflation developments
Cost inflation developments Major variable input cost/ton impact since Q1 FY22 Quarter-on-quarter* 1.4 • Unfavourable currency movements, specifically a significantly weaker US Dollar against the South African Rand and Euro, negatively 1.2 impacted the translation of input costs • Pulp costs lower i
Slide 7: Net debt and Adjusted EBITDA history
US$ million 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Q1 FY11 2,432 Q2 FY11 2,370 Q3 FY11 2,475 Q4 FY11 2,100 Q1 FY12 2,175 Q2 FY12 2,133 Q3 FY12 2,213 Q4 FY12 1,979 Q1 FY13 2,095 Q2 FY13 2,152 Q3 FY13 2,297 Q4 FY13 2,214 Q1 FY14 2,380 projects Q2 FY14 2,248 DWP expansion Q3 FY14 2,286 Q
Slide 8: Debt maturity profile
Debt maturity profile* Fiscal years Liquidity Debt maturity 515 900 500 2028 includes 800 EUR400m bond 700 Includes 2032 400 EUR300m bond 352 600 US$ million 2032 599 500 300 US$221m bond 257 221 400 232 200 300 117 200 84 100 53 46 46 203 100 34 34 21 21 17 0 0 Jun-25 2025 2026 2027 2028 2029 2030
Slide 9: Cash flow and capex
Cash flow and capex Non-essential capex has been deferred, FY25 capex reduced to US$510m Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 659 400 US$ million 643 600 550 Target: 472 506 US$ million US$300m 400 362 339 300 256 210 200 29 50 200 0 -200 100 -400 -306 -405 -600 0 20
Slide 10: Disciplined capital allocation strategy
Disciplined capital allocation strategy Priorities Targets High Regulatory & External regulatory and FY25 US$20 million for sustainability environmental environmental requirements Balance sheet sustainability: Sustaining Long-term net debt target <US$1 billion reducing debt Grow the label paper busi
Slide 11: Segmental overview
Segmental overview 11
Slide 12: Summary Q3 FY25: Dissolving wood pulp
Summary Q3 FY25 Sales tons Selling price per ton EBITDA* margin -4% y-o-y -1% y-o-y 13.9% 450 40% 400 35% 30% EBITDA* margin 350 25% Tons (‘000) 300 20% 250 15% 200 10% 150 5% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Vol
Slide 13: Summary Q3 FY25: Packaging and speciality papers
Summary Q3 FY25 Sales tons Selling price per ton EBITDA* margin flat y-o-y +1% y-o-y 0.9% 450 24% 400 20% EBITDA* margin 350 16% Tons (‘000) 300 12% 250 8% 200 150 4% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Volume EBITD
Slide 14: Summary Q3 FY25: Graphic papers
Summary Q3 FY25 Sales tons Selling price per ton EBITDA* margin -7% y-o-y +1% y-o-y 5.4% 1000 25% 900 800 20% EBITDA* margin 700 Tons (‘000) 15% 600 500 10% 400 300 5% 200 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Volume
Slide 15: Regional segments summary Q3 FY25
Regional segments Summary Q3 FY25 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** -3% y-o-y -4% y-o-y -5% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -4% y-o-y flat y-o-y -2% y-o-y Variable cost per ton (EUR) Var
Slide 16: Regional segments summary Q3 FY25
Regional segments Summary Q3 FY25 Sappi Europe Sappi North America Sappi Southern Africa 900 25% 500 25% 500 35% 800 30% 700 20% 400 20% 400 600 25% 15% 300 15% 300 20% 500 400 15% 10% 200 10% 200 300 10% 200 5% 100 5% 100 100 5% 0 0% 0 0% 0 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q
Slide 17: Thrive strategy
Thrive strategy • 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 production efficiencies • Improving our understanding of and proactively partnering with all stakeho
Slide 18: Immediate priorities
Immediate priorities Amid significant uncertainty in the international economic landscape • Optimise production and improve operational efficiencies across our mills • Aggressively pursue cost saving opportunities • Mitigate impacts of tariffs • In North America, prioritise commercial ramp-up of Som
Slide 19: Outlook
Outlook 19
Slide 20: Outlook
Outlook Somerset Mill Demand Costs PM2 • Outlook for global DWP demand remains • Trade tensions and overcapacity in global • As expected during the commercial positive; DWP market price recently risen paper pulp markets are exerting ramp-up phase, near term profitability will to US$810/ton downward
Slide 21: Outlook continued
Outlook continued Capital Guidance for Tariffs allocation Q4 FY25 • We are closely monitoring the escalating • Capital expenditure forecast for FY25 has • Taking into account: tariff-related developments and their reduced to US$510 million as we have • Current trading conditions potential adverse ef
Slide 22: Thank you
sappi Thank you
Slide 23: Supplementary information
Supplementary information 23
Slide 24: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit* 450 391 371 400 337 318 350 300 290 300 259 240 US$ million 226 225 250 203 180 177 168 167 200 161 148 145 132 130 120 150 116 112 107 106 101 98 92 86 85 80 100 65 64 41 31 50 19 16 0 -5 -50 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY
Slide 25: Planned shut schedule FY25
Planned shut schedule FY25* Unit Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Gratkorn Mill X Cloquet Mill X Somerset Mill (PM2 Project) X Ngodwana Mill X Saiccor Mill 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 pr
Slide 26: Returns consistently above WACC
Returns consistently above WACC 30% 25% 20% 15% Covid pandemic, DWP expansion at Saiccor Mill 10% 5% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10-year Average ROCE - Act WACC - Nominal Pre-tax 26
Slide 27: Tariffs: evolving situation
Tariffs Evolving situation ~ Currently no material direct impact on Sappi’s profitability US raw materials • 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 r
Slide 28: Tariffs continued
Tariffs continued Evolving situation ~ Currently no material direct impact on Sappi’s profitability Dissolving wood pulp • 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
Slide 29: 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 30: Packaging and speciality papers product split
Packaging and speciality papers Product split FY23 FY24 1% 0% 1% 0% 4% 4% 13% 12% 6% 7% 33% 36% 23% 25% 1% 7% 11% 10% 7% 1% Flexible packaging paper Label paper Paperboard Flexible packaging paper Label paper Paperboard Silicone base paper Functional paper Dye sublimation paper Silicone base paper F
Slide 31: Completion of Somerset Mill PM2 conversion and expansion
Successful completion of the conversion and expansion of Somerset Mill PM2 • Somerset Mill PM2 conversion and expansion from 235,000 tpa CWF to 470,000 tpa SBS successfully completed in May 2025 • Aligned with our Thrive strategy to reduce exposure to declining graphic papers markets and grow packag
Slide 32: 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 33: Sappi Europe
Sappi Europe Q3 FY25 Q2 FY25 Q3 FY24 Tons sold (‘000) 479 491 492 - Packaging and speciality papers 124 118 125 - Graphic papers 355 373 367 Revenue (EURm) 503 523 538 Price/Ton (EUR) 1,050 1,065 1,093 Cost/Ton* (EUR) 1,090 1,057 1,085 Operating profit excluding special items** (EURm) (19) 4 4 Adjus
Slide 34: 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 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 * Western
Slide 35: Sappi Europe net pulp integration FY24
Net pulp integration FY24* Sappi Europe 900 600 300 0 ‘000 Tons (300) (600) (900) (1,200) (1,500) Europe Production capacity Pulp requirement Net pulp purchases * Based on pulp production capacity. 35
Slide 36: Sappi North America
Sappi North America Q3 FY25 Q2 FY25 Q3 FY24 Tons sold (‘000) 326 362 340 - Pulp* 83 105 98 - Packaging and speciality papers 132 127 119 - Graphic papers 111 130 123 Revenue (US$m) 404 440 421 Price/Ton (US$) 1,239 1,215 1,238 Cost/Ton** (US$) 1,304 1,202 1,206 Operating profit excluding special ite
Slide 37: 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 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 * US indus
Slide 38: 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 Production Shipments RISI
Slide 39: Sappi North America net pulp integration FY24
Net pulp integration FY24* Sappi North America 1,200 900 600 300 ‘000 Tons 0 (300) (600) (900) (1,200) North America Production capacity Usage Net pulp sales * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. 39
Slide 40: Sappi Southern Africa
Sappi Southern Africa Q3 FY25 Q2 FY25 Q3 FY24 Tons sold* (‘000) 391 386 413 - Pulp 261 249 261 - Packaging and speciality papers 106 110 117 - Graphic papers 24 27 35 Revenue* (ZARm) 6,023 6,283 6,524 Price/Ton* (ZAR) 15,404 16,277 15,797 Cost/Ton** (ZAR) 13,997 15,894 12,828 Operating profit exclud
Slide 41: Paper pulp prices
US$/ton 1,000 1,400 1,600 1,800 1,200 400 600 800 2-Jan-18 2-Mar-18 2-May-18 2-Jul-18 Source: FOEX, CCF group, RISI. 2-Sep-18 2-Nov-18 2-Jan-19 2-Mar-19 2-May-19 Paper pulp Prices 2-Jul-19 2-Sep-19 2-Nov-19 2-Jan-20 NBSK Europe (US$) NBSK Europe (EUR) 2-Mar-20 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 2-J
Slide 42: Dissolving pulp prices
US$/ton 1,000 1,050 1,100 1,150 1,200 1,250 1,350 1,400 1,300 600 650 700 800 850 900 950 750 Oct 2017 Source: CCF Group. Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Dissolving pulp Prices Oct 2019 Jan 2020 Imp SW DP Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Imp HW DP
Slide 43: Textile fibre prices
US$\ton 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 500 Jan 2018 Source: CCF Group. Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Textile fibre Prices Jul 2019 Oct 2019 Cotton 328 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Cotton "A" Index Apr 2021 Jul 2021 Oct 2021 Jan 2022 PSF 1.4 D Apr 2022 Jul
Slide 44: Sappi Southern Africa net pulp integration FY24
Net pulp integration FY24* Sappi Southern Africa 1,800 1,500 1,200 900 ‘000 Tons 600 300 0 (300) (600) Southern Africa Production capacity Pulp requirement Net pulp sales * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. 44
Slide 45: Cash flow
Cash flow US$m Q3 FY25 Q2 FY25 Q3 FY24 Cash generated from operations 55 78 122 Movement in working capital (22) 4 44 Closure and restructuring costs paid - (2) (61) Finance costs paid (35) (2) (15) Finance income received 3 4 6 Taxation (paid) refund (4) (21) (3) Dividend paid - (85) - Cash generat
Slide 46: Earnings reconciliation to reported operating profit
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q3 FY25 Q2 FY25 Q3 FY24 Adjusted EBITDA* 80 107 148 Plantation fair value price adjustment (9) (17) 3 EBITDA excluding special items 71 90 151 Depreciation and amortisation (76) (71) (66) Operating profit
Slide 47: Who we are: sustainability at the core of our business
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 48: Our commitment to sustainable growth
ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth Awarded Platinum Level in sustainability performance by independent rating agency EcoVadis Sappi Forests 100% FSC- and PEFC-certified 2024 Annual 2024 TCFD Report 2024 Group Sustainability Report Integrate
Slide 49: Our approved science-based targets
Our approved science-based targets Logo Description automatically generated with medium confidence • Reduce Scope 1 • 44% of our and Scope 2 suppliers by GHG emissions spend will have by 41.5% per science-based ton of product targets by 2026. by 2030 from a 2019 base year.* * The target boundary inc
Slide 50: Our Thrive sustainability commitments
Our Thrive sustainability commitments Creating positive social impact SP S D D TW S PT T W T D D D T P T S PS P T D T DS T T WT P D T T D T S 50
Slide 51: 2025 Sustainability targets: Sappi Europe
2025 Sustainability targets are aligned with United Nation´s Sustainable Development Goals (SDGs) What we need to achieve in Sappi Europe between 2021–2025(1): 11% Pts increase share of renewable and clean energy 5% Improvement in specific total energy (GJ/adt) year-on-year improvement 10% Safety: A
Slide 52: 2025 Sustainability targets: Sappi North America
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): Within 5% of Share of renewable and clean baseline or higher energy Baseline = 79.1% 5% Improvement in specific total energy (GJ/adt)
Slide 53: 2025 Sustainability targets: Sappi Southern Africa
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): 7% Pts increase share of renewable and clean energy 9% Improvement in specific total energy (GJ/adt) year-on-year improvement 10% S
Slide 54: Energy self-sufficiency
Sustainability metrics Energy self-sufficiency 64.0% 63.8% 70% 61.6% 60.9% 60.5% 60% 50.1% 48.1% 47.7% 46.4% 45.9% 45.2% 44.8% 50% 42.9% 42.9% 42.9% 40% 25.1% 24.0% 30% 22.6% 22.0% 21.5% 20% 10% 0% EU NA SA Global 2020 2021 2022 2023 2024 54
Slide 55: Renewable and clean energy
Sustainability metrics Renewable and clean energy 82.2% 90% 79.9% 78.6% 78.2% 77.4% 80% 64.6% 63.3% 70% 58.0% 55.0% 54.9% 54.8% 52.7% 60% 50.3% 49.1% 48.3% 47.8% 44.2% 42.6% 42.6% 50% 39.7% 40% 30% 20% 10% 0% EU NA SA Global 2020 2021 2022 2023 2024 55
Slide 56: GHG emissions intensity
kg CO2e/adt 1,000 1,200 1,400 1,600 1,800 2,000 0 200 400 600 800 719.6 634.6 573.2 EU 545.1 362.3 Sustainability metrics GHG emissions intensity 504.0 403.5 413.5 NA 510.8 483.9 Scope 1 1,750.1 Scope 2 1,854.2 SA 1,799.0 1,716.3 1,638.1 932.6 878.0 Global 829.0 934.7 814.7 56
Slide 57: Absolute GHG emission
t CO2e 1,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2,000,000 0 1,924,021 1,850,684 1,813,655 EU 1,013,300 715,591 Sustainability metrics Absolute GHG emission 795,678 720,565 768,857 NA 729,585 730,619 Scope 1 2,667,448 Scope 2 2,957,973 SA 2,933,666 2,919,559 2,771,359 5,387,148 5,529,222 Glo
Slide 58: Innovative R&D focus: unlocking the full potential of each tree
Innovative R&D focus Unlocking the full potential of each tree Packaging papers Product packaging Paperboard Chemicals from lignin Speciality papers Binding agent Label papers Dispersion agent Dye sublimation papers Emulsion stabiliser Graphic papers Commercial print and publishing Dissolving wood p
Slide 59: Thank you
sappi Thank you