Slide 1: 2025 Results Presentation for the year ended 31 December 2025
2025 RESULTS PRESENTATION for the year ended 31 December 2025
Slide 2: 2025 in context
2025 in context
Slide 3: Context: Operating Environment in 2025
Context: Operating Environment in 2025 Subdued domestic backdrop • SA GDP growth remained below 1%, with manufacturing output and sales declining year-on-year in Q4 • Infrastructure constraints - electricity and water disruptions continued to raise costs, reduce stability, and impede manufacturing e
Slide 4: Delivering on our strategy
Delivering on our strategy
Slide 5: Strategic Projects and Portfolio Actions
Strategic Projects and Portfolio Actions Mkhondo Mill upgrade • Substantially completed; upgraded pulp digester and SLS plant commissioned and capitalised. Improved pulp mill efficiency already visible; SLS ramp-up slower than initially anticipated Versapak disposal • Versapak business sold end 2024
Slide 6: Financial review
Financial review
Slide 7: Financial review
Financial review Group revenue • Revenue up 5% to R14bn 13,955 13,291 14,000 12,823 • Increase in sales volumes in the Paper business 12,000 (containerboard and fruit packaging) offset by 10,000 6,583 7,118 7,585 declines in certain Plastics segments R million 8,000 • Sales volumes up 2.4% with a 6,
Slide 8: Operating review
Operating review
Slide 9: Paper Business
Paper Business Segment Revenue 11,824 • Revenue up 7.4% to R11.8bn 12,000 10,715 11,008 • Sales volumes increased by 5% 10,000 • Good growth in containerboard volumes partially R million 6,378 8,000 5,446 5,911 offset by a decline in cartonboard 6,000 • Strong growth in Paper converting fruit sector
Slide 10: Plastics Business
Plastics Business Segment Revenue 2,334 • Revenue down 7.5% to R2.2bn 2,500 2,161 2,160 • Sales volumes decline at FMCG Wadeville, as 2,000 anticipated, and a decrease in demand for beverage R million 1237 1,500 1168 1224 crates 1,000 • Partially offset by good growth in other FMCG operations and hi
Slide 11: Financial performance
Financial performance
Slide 12: Movement in underlying EBITDA from continuing operations
Movement in underlying EBITDA from continuing operations • Improved performance by Paper Converting more than offset by Paper Manufacturing and Recycling • Satisfactory performance by Bins & Crates and FMCG Pinetown and Atlantis • Weak demand from beverage sector and slow project start-ups hampered
Slide 13: Variable costs from continuing operations
Variable costs from continuing operations +6.3% 10,000 8 693 • Variable cost up 4.5% per ton (up 6.3% in absolute terms) 8 182 7% 8,000 1,126 1,208 • Paper raw materials up 8% in absolute terms 5% 1,035 984 2% • Higher OCC prices, especially in 1H-2025, due to export 6,000 1,107 1,133 demand R milli
Slide 14: Fixed costs from continuing operations
Fixed costs from continuing operations +3.7% • Fixed costs up 3.7% 4,000 3,607 3,741 • Increase of 2.7%, excluding additional 3,500 fixed costs from Seyfert acquisition, 629 5% 660 unfavourable FX movements, and other 3,000 once-off items 822 4% R million 2,500 794 • Personnel costs up 6.4% 2,000 •
Slide 15: Financial review from continuing operations
Financial review from continuing operations R million FY2025 FY2024 % change • EBITDA up by 1.2% EBITDA 1,519 1,501 1.2% • Depreciation increased as we capitalised Mkhondo assets in 4Q2025 Depreciation and (606) (578) 4.7% amortisation • FY2026: additional depreciation estimated at between Underlyin
Slide 16: Net debt and bank facilities
Net debt and bank facilities 3,000 December December % 2 514 2024 2025 change 2 371 2,500 273 Net debt close 2,371 2,514 6.0% 270 Net debt average 3,311 3,296 (0.5%) 2,000 Net finance costs 297 245 (17.8%) R million 1,500 Gearing 28.8% 28.7% (0.1) Bank covenant ratios (times) 2,241 1,000 2,101 Inter
Slide 17: Treasury activity
Treasury activity • The Group's primary bank debt facilities of R4.0 billion were refinanced in November Bank facilities 2025 under a common terms agreement, which includes the following: 1 500 1 500 • R1.5 billion five-year revolving credit facility • R1.5 billion three-year revolving credit facili
Slide 18: Movement in net debt
Movement in net debt R855 million cash inflow | 18
Slide 19: Working capital and ROCE
Working capital and ROCE 5,000 Return on Capital Employed (ROCE)¹ 4,000 22.6% 21.9% 20% 18.7% 2,518 16.6% 2,639 2,719 2,394 3,000 15% 18.4% 19.3% 13.7% 2,000 11.3% 10% 10.9% 11.7% R million 1,000 1,999 2,150 2,161 1,979 0 5% -1,000 -1,842 -1,914 -2,102 -1,982 0% FY2023 FY2024 FY2025 -2,000 2022 2023
Slide 20: Capital expenditure cash flows
Capital expenditure cash flows 1200 1 003 • R315 million of 2025 Paper capex relates 1000 56 to Mkhondo upgrade ~850 • 2026 capex cash flow estimated to 241 744 800 be between R800 million and R900 million, of which ~R330 million relates to 79 prior year capital commitments R million 64 600 600 • Mk
Slide 21: Capex returning to normal levels following significant investments
Capex returning to normal levels following significant investments in the business Investments in property, plant and equipment 1,800 350% 1,600 300% 1,400 344 250% 1,200 R million 200% 1,000 800 424 150% 600 1,192 315 1,006 100% 400 687 592 579 518 50% 200 429 - 0% 2019 2020 2021 2022 2023 2024 202
Slide 22: Capex projects focused on Felixton, Bins & Crates and Corrugated
Capex projects focused on Felixton, Bins & Crates and Corrugated agricultural plants yielding good returns • Expansion projects, excluding the Mkhondo upgrade, includes the following: Investments in property, plant and equipment 1,800 o Felixton mill upgrade o Bins & Crates acquisition of Nampak 1,6
Slide 23: Springs mill update
Springs mill update • Announced the contemplated Extract of key financial information discontinuation of the Springs mill in Feb- (R million) 2024 2025 2026 • At this stage, subject to consultations which Balance sheet are underway, we expect the mill to run Plant, equipment and capital spares 186 2
Slide 24: Dividends
Dividends 120 • Final dividend per share of 30 cents (2024: 75 cps) • Although the Board targets a return of approximately 100 three times cover on underlying HEPS, it was decided to reduce the pay-out ratio for this period to reflect 30 the current trading environment, which includes the 80 followi
Slide 25: Outlook
Outlook
Slide 26: Outlook
Outlook Operating environment remains tough • SA economy subdued; consumers under pressure; infrastructure constraints (power/water) continue to add costs • Global paper industry still facing oversupply and pricing pressure Shift from investment to returns • Major investment cycle largely complete -
Slide 27: 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 | 27