Slide 1: Q2 FY25 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 08 May 2025 Q2 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: Q2 in context
Q2 in context Challenging market conditions across all segments Quarter Demand Demand Shut impact Adjusted EBITDA* Adjusted EPS* US$ million US cents 180 12 • Overall volumes stable with modest • Issues that arose during the 107 recovery in packaging and speciality scheduled maintenance shuts papers
Slide 4: Summary FY25 Leverage in line with expectations
Summary FY25 Leverage in line with expectations Markets Last twelve months Leverage Cash generated from Net debt/Adjusted operations EBITDA US$ million Leverage ratio broadly in line with expectations and the prior year 585 2.4 2.3 466 Refinancing Successfully completed a €300 million Q2 FY24 Q2 FY2
Slide 5: EBITDA reconciliation Q2 FY24 to Q2 FY25
EBITDA* reconciliation Q2 FY24 to Q2 FY25 Largely driven by Sales revenue personnel cost inflation, maintenance 200 shut impact, inventory movement and other fixed costs 160 120 US$ million 80 40 0 180 (1) 7 (10) (68) 2 (3) 107 (17) 90 Q2 FY24 Adjusted Sales volume Price & mix Variable & delivery Fi
Slide 6: Cost inflation developments
Cost inflation developments Major variable input cost/ton impact quarter-on-quarter Energy Pulp Wood Chemicals Delivery • Energy costs up • Benefit of • Wood costs • Chemical costs • Logistics costs in Europe and in decline in pulp decreased in decreased in marginally up South Africa due prices Euro
Slide 7: Net debt trend
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 Q2 FY14 2,248 Q3 FY14 2,286 Q4 FY14 1,946 DWP expans
Slide 8: Debt maturity profile
Debt maturity profile* Fiscal years Liquidity Debt maturity 2028 includes 900 EUR400m bond 476 500 800 Includes 2032 700 EUR300m bond 400 2032 US$221m bond 600 326 US$ million 500 300 259 612 221 400 200 300 200 81 100 54 49 43 43 100 33 33 156 72 19 19 16 0 0 Mar-25 2025 2026 2027 2028 2029 2030 20
Slide 9: Cash flow and capex
Cash flow and capex Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 400 659 643 US$ million 550 US$ million 600 506 472 300 400 362 256 284 210 200 200 29 59 0 100 -200 -269 -400 -306 0 2021 2022 2023 2024 Mar-25 YTD 2021 2022 2023 2024 2025E* 2026E* 2027E* Cash generated from
Slide 10: Returns consistently above WACC
Returns consistently above WACC 30% 25% 20% Covid pandemic, DWP expansion at Saiccor Mill 15% 10% 5% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10-year Average ROCE - Act WACC - Nominal Pre-tax 10
Slide 11: Disciplined capital allocation strategy
Disciplined capital allocation strategy Priorities Targets High Regulatory & External regulatory and FY25 < US$50 million for sustainability environmental environmental requirements Balance sheet sustainability: Sustaining Long-term net debt target ~US$1 billion reducing debt Protect against future
Slide 12: Successful completion of the conversion and expansion of Somerset Mill PM2
Successful completion of the conversion and expansion of Somerset Mill PM2 • Somerset Mill PM2 conversion and expansion from 235,000 tpa CWF to 470,000 tpa SBS successfully completed in early May 2025 and commissioning is in progress • Aligned with our Thrive strategy to reduce exposure to declining
Slide 13: Segmental overview
Segmental overview 13
Slide 14: Pulp
Summary Q2 FY25 Pulp Sales tons -6% y-o-y Selling price per ton +8% y-o-y EBITDA* margin 16.8% 450 40% 400 35% 30% EBITDA* margin 350 25% Tons (‘000) 300 20% 250 15% 200 10% 150 5% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Volu
Slide 15: Packaging and speciality papers
Summary Q2 FY25 Packaging and Sales tons Selling price per ton EBITDA* margin speciality papers +9% y-o-y -4% y-o-y 1.8% 450 24% 400 20% EBITDA* margin 350 16% Tons (‘000) 300 12% 250 8% 200 150 4% 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24
Slide 16: Graphic papers
Summary Q2 FY25 Graphic Sales tons Selling price per ton EBITDA* margin papers -1% y-o-y -4% y-o-y 7.5% 1000 25% 900 800 20% EBITDA* margin 700 15% Tons (‘000) 600 500 10% 400 300 5% 200 100 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 2
Slide 17: Regional segments
Regional segments Summary Q2 FY25 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** -1% y-o-y flat y-o-y +1% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -1% y-o-y flat y-o-y +4% y-o-y Variable cost per ton (EUR) Va
Slide 18: Regional segments continued
Regional segments continued Summary Q2 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
Slide 19: Thrive strategy
Thrive strategy Drive operational Enhance trust excellence • Strengthen our safety-first culture • Improving our understanding of • Continuously improve our cost and proactively partnering with all position stakeholders • Continue to maximise the benefits of • Driving sustainability solutions our gl
Slide 20: Tariffs
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 21: Tariffs continued
Tariffs continued Evolving situation ~ currently no material 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 these c
Slide 22: Outlook
Outlook 22
Slide 23: Outlook
Outlook Demand Costs Somerset Mill PM2 • The disruption of trade flows • Despite current raw material • The conversion and expansion related to tariff actions could costs being relatively low, project was successfully contribute to global inflationary potential global inflationary completed in early
Slide 24: Outlook continued
Outlook continued Capital Guidance allocation for Q3 FY25 • Capital expenditure forecast for • Given the uncertainty in our FY25 has risen to US$550 million markets due to tariffs and their due to the delay in the start-up and broader indirect effects on global substantially increased labour costs m
Slide 25: Thank you
sappi Thank you
Slide 26: Supplementary information
Supplementary information 26
Slide 27: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit* 450 391 400 371 337 350 318 300 290 300 259 US$ million 240 226 225 250 203 180 177 200 168 167 161 148 145 132 130 150 120 116 112 107 106 101 98 92 86 85 100 65 64 41 50 31 19 16 0 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
Slide 28: 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 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 is project related •
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 Car
Slide 30: 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: 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 32: Sappi Europe
Sappi Europe Q2 FY25 Q1 FY25 Q2 FY24 Tons sold (‘000) 491 465 495 - Packaging and speciality papers 118 107 120 - Graphic papers 373 358 375 Revenue (EURm) 523 517 534 Price/Ton (EUR) 1,065 1,112 1,079 Cost/Ton* (EUR) 1,057 1,084 1,059 Operating profit excluding special items** (EURm) 4 13 10 Adjust
Slide 33: 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 34: Net pulp integration FY24 Sappi Europe
Net pulp integration FY24 Sappi Europe ‘000 tons 900 600 300 0 (300) (600) (900) (1,200) (1,500) Europe Production capacity Pulp requirement Net pulp purchases Based on pulp production capacity 34
Slide 35: Sappi North America
Sappi North America Q2 FY25 Q1 FY25 Q2 FY24 Tons sold (‘000) 362 371 361 - Pulp* 105 104 122 - Packaging and speciality papers 127 131 112 - Graphic papers 130 136 127 Revenue (US$m) 440 458 439 Price/Ton (US$) 1,215 1,235 1,216 Cost/Ton** (US$) 1,202 1,108 1,136 Operating profit excluding special i
Slide 36: 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 37: 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 Production Shipments RISI price
Slide 38: Net pulp integration FY24 Sappi North America
Net pulp integration FY24 Sappi North America ‘000 tons 1,200 900 600 300 0 (300) (600) (900) (1,200) North America 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. 38
Slide 39: Sappi Southern Africa
Sappi Southern Africa Q2 FY25 Q1 FY25 Q2 FY24 Tons sold* (‘000) 386 371 384 - Pulp 249 242 255 - Packaging and speciality papers 110 87 95 - Graphic papers 27 42 34 Revenue* (ZARm) 6,283 5,972 6,021 Price/Ton* (ZAR) 16,277 16,097 15,680 Cost/Ton** (ZAR) 15,894 12,771 12,143 Operating profit excludin
Slide 40: Paper pulp Prices
US$/ton 1,000 1,200 1,400 1,600 1,800 400 600 800 2-Jan-18 2-Mar-18 2-May-18 2-Jul-18 Source: FOEX, CCF group, RISI. 2-Sep-18 2-Nov-18 2-Jan-19 2-Mar-19 Paper pulp Prices 2-May-19 2-Jul-19 2-Sep-19 2-Nov-19 2-Jan-20 NBSK Europe (US$) NBSK Europe (EUR) 2-Mar-20 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 2-J
Slide 41: Dissolving pulp Prices
US$/ton 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 600 650 700 750 800 850 900 950 Oct 2017 Source: CCF Group. Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Dissolving pulp Prices Oct 2019 Jan 2020 Imp SW DP Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021 Imp HW DP
Slide 42: Textile fibre Prices
US$\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 PSF 1.4 D Jan 2022 Apr 2022 Jul
Slide 43: Net pulp integration FY24 Sappi Southern Africa
Net pulp integration FY24 Sappi Southern Africa ‘000 tons 1,800 1,500 1,200 900 600 300 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. 43
Slide 44: Cash flow
Cash flow US$m Q2 FY25 Q1 FY25 Q2 FY24 Cash generated from operations 78 206 128 Movement in working capital 4 (130) (45) Closure and restructuring costs paid (2) (2) (133) Finance costs paid (2) (34) (25) Finance income received 4 5 7 Taxation (paid) refund (21) (49) (17) Dividend paid (85) - (84)
Slide 45: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q2 FY25 Q1 FY25 Q2 FY24 Adjusted EBITDA* 107 203 180 Plantation fair value price adjustment (17) (1) 3 EBITDA excluding special items 90 202 183 Depreciation and amortisation (71) (70) (67) Operating profi
Slide 46: 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 47: ESG - Continuously rethinking what we do and how we do it
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 48: Our approved science-based targets
Our approved science-based targets * The target boundary includes biogenic emissions and removals from bioenergy feedstocks. • Reduce Scope 1 and Scope 2 GHG • 44% of our emissions suppliers by by 41.5% per spend will have ton of product science-based by 2030 from a targets by 2026. 2019 base year.*
Slide 49: Our Thrive sustainability commitments
Our Thrive sustainability commitments Creating positive social impact RESPONSIBLE AFFORDABLE DECENT WORK CONSUMPTION NO QUALITY CLEAN WATER AND AND ECONOMIC AND CLIMATE LIFE PARTNERSHIPS POVERTY EDUCATION AND SANITA TION CLEAN ENERGY GROWTH PRODUCTION ACTION ON LAND FOR THE GOALS 49
Slide 50: 2025 Sustainability targets aligned with UN SDGs
2025 Sustainability targets are aligned with United Nation´s Sustainable Development Goals (SDGs) What we need to achieve in Sappi Europe between 2021–2025*: Pts increase share 11% 5% Improvement in specific AFFORDABLE AND CLEAN ENERGY of renewable and total energy (GJ/adt) clean energy year-on-year
Slide 51: 2025 Sustainability targets aligned with UN SDGs
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*: Within 5% Share of renewable and 5% Improvement in specific AFFORDABLE AND CLEAN ENERGY of baseline clean energy total energy (GJ/adt)
Slide 52: 2025 Sustainability targets aligned with UN SDGs
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*: Pts increase share 7% 9% Improvement in specific AFFORDABLE AND CLEAN ENERGY of renewable and total energy (GJ/adt) clean energy year
Slide 53: Sustainability metrics Energy self-sufficiency
Sustainability metrics Energy self-sufficiency 64.0% 63.8% 61.6% 70% 60.9% 60.5% 60% 50.1% 48.1% 47.7% 46.4% 45.9% 45.2% 44.8% 42.9% 42.9% 42.9% 50% 40% 25.1% 24.0% 22.6% 22.0% 21.5% 30% 20% 10% 0% EU NA SA Global 2020 2021 2022 2023 2024 53
Slide 54: Sustainability metrics Renewable and clean energy
Sustainability metrics Renewable and clean energy 82.2% 79.9% 90% 78.6% 78.2% 77.4% 80% 64.6% 63.3% 70% 58.0% 54.8% 55.0% 54.9% 52.7% 50.3% 60% 49.1% 47.8% 48.3% 44.2% 42.6% 42.6% 39.7% 50% 40% 30% 20% 10% 0% EU NA SA Global 2020 2021 2022 2023 2024 54
Slide 55: Sustainability metrics GHG emissions intensity
Sustainability metrics GHG emissions intensity 1,854.2 1,799.0 1,750.1 2,000.0 1,716.3 1,638.1 1,800.0 1,600.0 1,400.0 1,200.0 kg CO2e/adt 934.7 932.6 878.0 814.7 1,000.0 829.0 719.6 634.6 800.0 573.2 545.1 504.0 510.8 483.9 413.5 403.5 600.0 362.3 400.0 200.0 0.0 EU NA SA Global Scope 1 Scope 2 55
Slide 56: Sustainability metrics Absolute GHG emission
t CO2e 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 0 1,924,021 1,850,684 1,813,655 EU 1,013,300 Sustainability metrics 715,591 Absolute GHG emission 795,678 720,565 768,857 NA 729,585 730,619 Scope 1 Scope 2 2,667,448 2,957,973 SA 2,933,666 2,919,559 2,771,359 5,387,148 5,529,222 Glo
Slide 57: 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 58: Thank you
sappi Thank you