Slide 1: Q4 FY25 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 06 November 2025 Q4 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: FY25 in context: A challenging year
FY25 in context A challenging year, marked by ongoing global economic weakness Operational Markets Annual highlights Adjusted EBITDA* Adjusted EPS* US$ million US cents 41 684 • Market conditions declined sharply after • Despite these challenges a strong start to the financial year • DWP and packagi
Slide 4: Q4 FY25 in context
Q4 FY25 in context Earnings improved quarter on quarter amid challenging market conditions Quarter Regional Profitability Adjusted EBITDA* Adjusted EPS* update US$ million US cents 226 15 • Market conditions remained challenging • Europe – excess capacity and weak • Sales volume increased q-o-q for
Slide 5: Adjusted EBITDA reconciliation Q4 FY24 to Q4 FY25
Adjusted EBITDA* reconciliation Q4 FY24 to Q4 FY25 240 Significant downward 200 pricing pressure across all product segments 160 US$ million 120 80 40 0 226 (7) (90) (14) (3) 2 (3) 111 5 116 Q4 FY24 Adjusted Sales volume Price & mix Variable & Fixed costs Other Currency Q4 FY25 Adjusted Plantation p
Slide 6: Cost inflation developments
Cost inflation developments Major variable input cost/ton impact since Q1 FY22 1.8 Quarter-on-quarter* 1.6 • Variable costs down across all raw material input costs categories, delivery cost/ton flat 1.4 • In Europe, variable cost per/ton down 3% 1.2 • In North America, variable cost per/ton down 6%
Slide 7: Net debt/Adjusted EBITDA development
Net debt/Adjusted EBITDA* development ~ capex cycle Covid pandemic, DWP expansion 2,600 at Saiccor Mill 7.0 2,400 6.0 European closures, 2,200 Somerset Mill PM2 5.0 conversion 2,000 Somerset Mill PM1 2,070 2,056 2,055 US$ million conversion, Cham and 4.0 1,977 1,957 1,947 1,946 Matane Mill acquisiti
Slide 8: Debt maturity profile
Debt maturity profile* Fiscal years Proactively engaged with our banks to maintain financial flexibility Liquidity Debt maturity 515 900 500 800 2028 includes EUR400m bond Includes 2032 700 EUR300m bond 400 352 600 US$ million We are making good 602 progress to term-out a 2032 500 300 large portion
Slide 9: Cash flow and capex
Cash flow and capex FY25 capex below previous guidance, FY26 capex estimated at US$290m Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 659 400 US$ million 643 Target: <US$300m 600 550 FY26 estimated at 472 506 US$290m US$ million 443 400 362 300 256 210 200 155 29 200 0 -200 1
Slide 10: FY25 financial health summary
FY25 financial health summary Leverage covenant levels successfully increased for the next 12 months Financial Short-term Debt reduction flexibility debt • Recent performance resulted in our • We are making good progress to term- • Primary focus in FY2026 will be on leverage ratio increasing close t
Slide 11: Thrive strategy
Thrive strategy The guiding principles of our Thrive strategy remains relevant, however, in the current environment our focus is ‘Back to Basics’ • Strengthen our safety-first culture Drive operational • Continuously improve our cost position • Continue to maximise the benefits of our global footpri
Slide 12: Our business strategy – Focus is 'Back to Basics'
Our business strategy – Focus is ‘Back to Basics’ Thrive consolidation phase (Back to Basics) Thrive investment phase 2026 – 2027/8 Thrive advance phase 2020 – 2025 • Driving operational excellence 2028 and beyond • Ramp-up of production • Major investments • Achieve production efficiency • When our
Slide 13: Four key messages to shareholders
Four key messages to shareholders Focus on reducing leverage Maximise earnings growth 1 2 • Target <US$1 billion net debt • EBITDA growth as we ramp-up Somerset Mill PM2 • Capex reduction of >US$200m vs FY2025 • ROCE target of WACC +2% consistently Capital allocation Strategic portfolio priorities E
Slide 14: Strategic initiatives to rationalise the European business
Strategic initiatives to rationalise the European business Adapting to market realities across our operations … 5 $60m* >500 units to reduce costs by … with reduction of … employees Alfeld Mill Ehingen Mill Kirkniemi Mill Gratkorn Mill Central organisation Consultation process completed in FQ1 Ongoi
Slide 15: Segmental overview
Segmental overview 15
Slide 16: Summary Q4 FY25 – Pulp
Summary Q4 FY25 Sales tons Selling price per ton EBITDA* margin +2% y-o-y -12% y-o-y 18.6% 450 40% 400 35% 30% EBITDA* margin 350 25% Tons (‘000) 300 20% 250 15% 200 10% 150 5% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4
Slide 17: Summary Q4 FY25 – Packaging and speciality papers
Summary Q4 FY25 Sales tons Selling price per ton EBITDA* margin +11% y-o-y -2% y-o-y 3.7% 450 24% 400 20% EBITDA* margin 350 16% Tons (‘000) 300 12% 250 8% 200 150 4% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Volume
Slide 18: Summary Q4 FY25 – Graphic papers
Summary Q4 FY25 Sales tons Selling price per ton EBITDA* margin -11% y-o-y -2% y-o-y 6.0% 1000 25% 900 800 20% EBITDA* margin 700 Tons (‘000) 15% 600 500 10% 400 300 5% 200 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25
Slide 19: Summary Q4 FY25 – Regional segments
Regional segments Summary Q4 FY25 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** -2% y-o-y -8% y-o-y +6% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -9% y-o-y -2% y-o-y -9% y-o-y Variable cost per ton (EUR) Vari
Slide 20: Our commitment to sustainable growth
ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth Validated Sappi Forests Science-Based 2025 Annual 2025 TCFD Report 2025 Group Sustainability Report 100% FSC- and GHG reduction Integrated Report PEFC-certified target Available from 12 December 2025 Rated
Slide 21: Outlook
Outlook 21
Slide 22: Outlook
Outlook Costs Demand Pricing • We anticipate DWP market conditions will • The significant differential between DWP • Prices for certain of our key raw materials remain stable through Q1 FY26 and paper pulp prices, together with remain relatively low at present; we will • Packaging and speciality pap
Slide 23: Outlook continued
Outlook continued Capital Guidance for Strategic allocation Q1 FY26 focus • Our ‘Back to Basics’ focus is to reduce • We have adjusted our capital expenditure • Taking into account : debt and strengthen the balance sheet downward to below US$300 million per • The confluence of market factors • Follo
Slide 24: Thank you
sappi Thank you
Slide 25: Supplementary information
Supplementary information 25
Slide 26: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit* 450 391 371 400 337 318 350 300 290 300 259 240 US$ 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 86 85 80 100 65 64 41 31 30 50 19 16 0 -5 -50 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY2
Slide 27: Plantation fair value price adjustment by segment
Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Pulp 9 - (5) (38) - (17) (16) - Packaging and speciality papers 14 3 9 5 (1) 1 6 4 Graphic papers 3 - (1) 2 - (1) 1 1 Group 26 3 3 (31) (1) (17) (9) 5 27
Slide 28: Planned shut schedule
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 o Q2 FY25 shut cost impact was US$78 million • US$58 million for Ngodwana and Saiccor Mills, and US$20 mil
Slide 29: Navigating market cycles: 10-year view of Returns vs. WACC
Navigating market cycles: A 10-year view of Returns vs. WACC 30% 25% Target ROCE = 2% above WACC 20% Covid pandemic, 15% DWP expansion at Saiccor Mill 10% 5% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10-year Average ROCE - Act WACC - Nominal Pre-tax Target ROCE 29
Slide 30: Tariffs: Evolving situation
Tariffs Evolving situation 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 reciprocal tariffs Graphic and packaging papers • The US is a ne
Slide 31: Tariffs continued: Evolving situation
Tariffs continued Evolving situation 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 these countries were to implement reciprocal tariffs • We could
Slide 32: 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 33: Packaging and speciality papers product split
Packaging and speciality papers Product split FY24 FY25 1% 0% 1% 0% 4% 4% 12% 11% 7% 7% 30% 33% 25% 29% 1% 11% 1% 11% 7% 7% Flexible packaging paper - 12% Label paper - 7% Flexible packaging paper - 11% Label paper - 7% Paperboard - 25% Silicone base paper - 7% Paperboard - 29% Silicone base paper -
Slide 34: 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 35: Sappi Europe
Sappi Europe In local currency (EUR) Q4 FY25 Q3 FY25 Q4 FY24 Sappi Europe Tons sold (‘000) 479 479 488 - Packaging and speciality papers 127 124 118 900 25% 800 20% - Graphic papers 352 355 370 700 600 15% 500 Revenue 483 503 541 400 10% 300 5% Price/Ton 1,008 1,050 1,109 200 0% 100 0 -5% Cost/Ton*
Slide 36: 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 37: Sappi Europe net pulp integration FY25
Net pulp integration FY25* 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. 37
Slide 38: Sappi North America
Sappi North America In local currency (USD) Q4 FY25 Q3 FY25 Q4 FY24 Sappi North America Tons sold (‘000) 359 326 389 - Pulp* 92 83 113 500 25% - Packaging and speciality papers 159 132 130 400 20% - Graphic papers 108 111 146 300 15% 200 10% Revenue 429 404 474 100 5% Price/Ton 1,195 1,239 1,219 0 0
Slide 39: 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 40: 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 Production Shipments
Slide 41: Sappi North America net pulp integration FY25
Net pulp integration FY25* Sappi North America 1,200 900 600 300 ‘000 Tons 0 (300) (600) (900) (1,200) North America Production capacity Pulp requirement * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. 41
Slide 42: Sappi Southern Africa
Sappi Southern Africa In local currency (ZAR) Q4 FY25 Q3 FY25 Q4 FY24 Sappi Southern Africa Tons sold* (‘000) 448 391 423 - Pulp 289 261 261 500 35% - Packaging and speciality papers 130 106 127 400 30% 25% - Graphic papers 29 24 35 300 20% 200 15% Revenue* 6,601 6,023 6,823 10% 100 Price/Ton* 14,73
Slide 43: 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 2-Mar-20 NBSK Europe (US$) NBSK Europe (EUR) 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 2-J
Slide 44: Dissolving pulp prices
US$/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 Oct 2021 I
Slide 45: Textile fibre prices
US$\ton 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 500 Jan 2018 Source: CCF Group. Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Textile fibre Prices Oct 2019 Cotton 328 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Cotton "A" Index Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 PSF 1.4 D Jul
Slide 46: Sappi Southern Africa net pulp integration FY25
Net pulp integration FY25* Sappi Southern Africa 1,800 1,500 1,200 900 ‘000 Tons 600 300 0 (300) (600) Southern Africa Production capacity Pulp requirement Net pulp sales * Based on pulp production capacity and includes annual production capacity of 370,000 tons of dissolving wood pulp. 46
Slide 47: Cash flow
Cash flow US$m Q4 FY25 Q3 FY25 Q4 FY24 Cash generated from operations 104 55 179 Movement in working capital 59 (22) 73 Closure and restructuring costs paid (3) - (43) Finance costs paid (29) (35) (16) Finance income received 4 3 6 Taxation (paid) refund (16) (4) (20) Dividend paid - - - Cash genera
Slide 48: Earnings reconciliation to reported operating profit
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q4 FY25 Q3 FY25 Q4 FY24 Adjusted EBITDA* 111 80 226 Plantation fair value price adjustment 5 (9) (31) EBITDA excluding special items 116 71 195 Depreciation and amortisation (86) (76) (75) Operating profit
Slide 49: 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 50: Summary of FY25 performance against sustainability targets
Summary of FY25 performance against sustainability targets FY25 snapshot of targets Group FY25 snapshot of targets Group ROCE/RONA Safety* LTIFR Governance Prosperity/ New products with sustainability benefits Safety* LTISR (SSA) People/ Gender diversity Social Sustainable forest growth (SSA) n/a Pa
Slide 51: 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 52: Our Thrive sustainability commitments
Our Thrive sustainability commitments Creating positive social impact B B T T T T T T T T T T T T T T 52
Slide 53: Sustainability targets aligned with UN SDGs: 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 54: Sustainability targets aligned with UN SDGs: 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 55: Sustainability targets aligned with UN SDGs: 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 56: 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 56
Slide 57: 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 57
Slide 58: 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 58
Slide 59: 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 60: 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 61: Thank you
sappi Thank you