Slide 1: Interim results presentation for the six months ended June 2025
2025 Interim results presentation for the six months ended June
Slide 2: Period in context
Period in context
Slide 3: Period in context
Period in context Good volume growth in containerboard and fruit packaging, offset by lower industrial sales volumes and lower margins • Benefits of alignment to growth sectors and competitiveness of Felixton mill following recently completed projects • Industrial sales volumes down due to portfolio
Slide 4: Delivering on our strategy – Investing for the future
Delivering on our strategy – Investing for the future
Slide 5: Mkhondo mill upgrade project, Mpumalanga
Mkhondo mill upgrade project, Mpumalanga Mkhondo mill upgrade project Capex budget R1.30 billion New SLS spray dryer commissioned, to be optimised after pulp mill shut. New Project chipping line and turbo vacuum pumps fully operational. Paper machine shut progress complete. Pulp mill construction an
Slide 6: Mpact renewable energy – June 2025 update
Mpact renewable energy – June 2025 update • Purpose: Sustainable energy generation, security of supply, cost saving and carbon emissions saving Completed In Construction: Capacity Capacity • Other benefits: Reduction of CO2e Scope 2 Location Location MWp MWp emissions; reduction of diesel usage in b
Slide 7: Financial review
Financial review
Slide 8: Financial review
Financial review Group revenue • Revenue up 3.2% to R6.4bn 13,291 14,000 12,823 • Sales volumes increased 1.5% 12,000 • Good growth in containerboard, citrus 10,000 7,118 6,583 cartons, jumbo bins and agricultural crates R million 8,000 • Offset by declines in FMCG Wadeville, 6,000 cartonboard, and
Slide 9: Operating review
Operating review
Slide 10: Paper Business
Paper Business Segment Revenue • Revenue up 6.9% to R5.4bn 12,000 10 715 11 008 • Sales volumes up 6% 10,000 • Growth in containerboard and citrus R million 8,000 5 446 5 911 cartons offset by declines in cartonboard and industrial cartons 6,000 4,000 • Average selling price increased 1%, with 5,269
Slide 11: Plastics Business
Plastics Business Segment Revenue • Revenue of R936m, down 14.7% 2,500 2,334 • Volume down 47% due primarily to portfolio 2,161 optimisation at FMCG Wadeville, which was 2,000 anticipated, and decline in bottling crates R million 1237 1,500 1168 • Vinegar shortage also affected mayonnaise jar and cl
Slide 12: Financial performance
Financial performance
Slide 13: Variable costs from continuing operations
Variable costs from continuing operations Variable cost up 7.2% in absolute terms (up 5.7% per ton) +7.2% • Paper raw material up 6.3% 4,500 3 945 3 679 • Higher OCC prices due to increased export demand, especially 561 3% 3,500 539 7% from India 461 494 4% • Increase in external paper purchases in
Slide 14: Fixed costs from continuing operations
Fixed costs from continuing operations +1.9% 2,500 • Fixed costs up 1.9% 2 110 2 071 • Personnel cost up 3.4% 2,000 310 0.7% • Less downtime at paper mills compared to H1-2024 308 395 8% • Net operating expenses increased by 2.1%, excluding an 366 1,500 unfavourable forex movement in the current per
Slide 15: Financial review
Financial review (Restated)1 June 2025 June 2024 change Underlying operating profit from continuing operations 314 423 (25.5%) Net finance costs (119) (148) (19.3%) Earnings from equity accounted investees and other 9 12 (24.8%) Underlying profit before tax from continuing operations 204 287 (28.6%)
Slide 16: Net debt and facilities
Net debt and facilities Net debt H1-2025 H1-2024 change FY-2024 3,500 3 230 294 2 985 3,000 Net debt close 2,985 3,230 (7.6%) 2,371 272 2,500 2 371 Net debt average 3,284 3,251 1.0% 3,311 270 R million 2,000 Net finance costs 119 148 (19.3%) 297 1,500 Gearing 33.7% 36.9% (3.2) 28.8% 2,936 2,713 2,10
Slide 17: Movements in net debt
Movements in net debt 2,000 1,500 1,000 635 500 1 0 -58 -111 -33 -22 -500 -165 R million -462 -399 -1,000 -1,500 -2,000 -2,500 -2,371 -3,000 -2,985 -3,500 Net debt at Cash Working Capital Net interest Income tax Dividend Repayment Purchase of Other Net debt at December generated capital expenditure
Slide 18: Working capital and ROCE
Working capital and ROCE Working capital Return on Capital Employed (ROCE)¹ 2 988 2 860 25% 5,000 2 448 76 73 20% 4,000 65 2,894 2,624 2,394 15% 13.5% ROCE % 3,000 11.7% 10% 9.3% 2,000 R million 2,156 2,326 5% 1,000 2,317 0% 0 2024 2025 HY1 Full Year -1,000 -2,223 -2,102 -2,090 • ROCE, excluding cap
Slide 19: Capital expenditure cash flows
Capital expenditure cash flows 1,200 1 003 1,000 56 800 241 • H1-2025 includes R218 million of capex related to Mkhondo project R million 600 • we expect to spend a further R185 million 399 in H2-2025 on the project 10 400 31 • Total capital commitments of R1.0bn expected to 706 be spent in the next
Slide 20: Dividends
Dividends • Interim dividend per share of 30 cents per share (June 2024: 150 30 cps) • Reflects the importance of shareholder returns and our 120 continued confidence in the future of the business 105 • Continue to focus on: 100 • driving long-term value for shareholders; cents per share 75 • pruden
Slide 21: Outlook
Outlook
Slide 22: Outlook
Outlook • Trading conditions are expected to remain difficult in the second half of the year, with a corresponding impact on profitability • Based on current projections, no commercial downtime is anticipated at the containerboard mills, • but continued pressure on selling prices is expected to offs
Slide 23: Thank you
Thank you Bruce Strong Chief Executive Officer Hannes Snyman Chief Financial Officer For any further Investor Relations questions please contact: Keyter Rech Investor Solutions Marlize Keyter mkeyter@kris.co.za | +27 83 701 2021 | 23