Slide 1: Q2 FY26 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 07 May 2026 Q2 FY26 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: A quarter characterised by persistent macroeconomic headwinds
Q2 FY26 in context A quarter characterised by persistent macroeconomic headwinds Quarter Profitability Adjusted EBITDA* Adjusted EPS* US$ million US cents 1 107 • Adverse impacts weighing on earnings: 90 • Selling prices declined across all regions • DWP prices significantly lower than last year • E
Slide 4: Main drivers of earnings: DWP market prices and ZAR/US$
Q2 FY26 in context Main drivers of earnings: DWP market prices and ZAR/US$ ZAR/US$ exchange rate vs Average Pulp segment net selling price 20 1,000 19 950 18 900 17 850 US$ / ton US$ / ton 16 800 15 750 14 700 13 650 12 600 11 550 10 500 FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q
Slide 5: Main drivers of earnings: Somerset Mill PM2 ramp-up
Q2 FY26 in context Main drivers of earnings: Somerset Mill PM2 ramp-up Sappi North America Packaging and speciality papers SBS market price 180 1,600 160 1,550 140 1,500 Sales volumes - tons 120 1,450 1,400 US$ / ton 100 1,350 80 1,300 60 1,250 40 1,200 20 1,150 0 1,100 FY23 Q1 FY23 Q2 FY23 Q3 FY23
Slide 6: Adjusted EBITDA reconciliation Q2 FY25 to Q2 FY26
Adjusted EBITDA* reconciliation Q2 FY25 to Q2 FY26 Pricing declines across all product 120 Despite stable US$ hardwood timber export prices segments, particularly DWP from South Africa, the ZAR-denominated prices declined materially due to the stronger ZAR/US$, 100 resulting in a negative revaluatio
Slide 7: Cost inflation developments
Cost inflation developments Major variable input cost/ton impact since Q1 FY22 1.8 Quarter-on-quarter* 1.6 • Increasing energy, pulp, chemicals and delivery costs 1.4 • Stable wood costs • The translation of EUR- and ZAR-denominated costs into US$ has an 1.2 adverse impact on reported group costs 1.
Slide 8: Net debt/Adjusted EBITDA development
Net debt/Adjusted EBITDA* development We proactively negotiated a suspension of the leverage covenant testing until March 2027 2,600 6.1x 7.0 5.9x 2,400 6.0 2,200 5.0 2,000 2,070 2,056 2,055 US$ million 4.0 1,964 1,951 1,947 1,946 1,920 1,917 1,800 1,793 3.0 1,600 1,670 1,530 2.0 1,400 1,176 1,422 1
Slide 9: Debt maturity profile
Debt maturity profile* Fiscal years Liquidity remained well-managed during the quarter Liquidity Debt maturity 900 800 800 700 700 550 600 2028 includes EUR400m bond 600 US$ million 500 Includes 2032 EUR300m bond 632 500 400 344 2032 400 US$221m bond 248 300 221 300 200 143 200 115 87 66 66 100 192
Slide 10: Cash flow and capex
Cash flow and capex FY26 Capex further reduced to preserve cash Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 659 400 US$ million 643 Target: <US$275m 600 550 FY26 estimated at 472 506 US$250m US$ million 443 400 362 300 256 210 200 155 103 29 32 200 0 -56 -200 100 -400 -306
Slide 11: FY26 financial health summary
FY26 financial health summary Proactively engaging with our banks to maintain financial flexibility Financial Short-term ‘Back to Basics’ flexibility debt focus • Q2 FY26 Net debt/EBITDA leverage • In January 2026, the international RCF • Through our ‘Back to Basics’ focus, we covenant ratio 6.1x wa
Slide 12: Our Thrive strategy remains relevant, but current conditions call for a clear 'Back to Basics' focus
Thrive strategy Our Thrive strategy remains relevant, but current conditions call for a clear ‘Back to Basics’ focus • Strengthen our “safety-first” culture Drive operational • Continuously improve our cost position • Continue to maximise the benefits of our global footprint excellence • Best-in-cla
Slide 13: Proposed joint venture with UPM: Timeline
Proposed joint venture (JV) with UPM Timeline 04 December 2025 – Announcement of a non-binding letter of intent with UPM regarding the potential formation of a 50/50 JV for graphic paper in Europe Securing bank financing for the JV and signing of definitive agreements during the first half of 2026 A
Slide 14: European Commission Merger Control Process Flow
European Commission | Merger Control Process Flow • The European merger control process officially entered phase II on 28 April, which is part of the normal regulatory process where certain matters require further detailed assessment following the initial Phase I review • We remain confident in the
Slide 15: Segmental overview
Segmental overview 15
Slide 16: Pulp
Summary Q2 FY26 Pulp Sales tons Selling price per ton EBITDA* margin -2% y-o-y -12% y-o-y -0.4% 450 40% 400 35% 30% EBITDA* margin 350 25% Tons (‘000) 300 20% 250 15% 10% 200 5% 150 0% 100 -5% 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
Slide 17: Packaging and speciality papers
Summary Q2 FY26 Packaging and Sales tons Selling price per ton EBITDA* margin speciality papers 450 +10% y-o-y +2% y-o-y -0.6% 24% 400 20% EBITDA* margin 350 16% Tons (‘000) 300 12% 250 8% 200 4% 150 0% 100 -4% 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
Slide 18: Graphic papers
Summary Q2 FY26 Graphic Sales tons Selling price per ton EBITDA* margin papers 1000 -5% y-o-y flat y-o-y 9.1% 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
Slide 19: Regional segments
Regional segments Summary Q2 FY26 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** +2% y-o-y -3% y-o-y +1% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -7% y-o-y -2% y-o-y -17% y-o-y Variable cost per ton (EUR) Var
Slide 20: Our commitment to sustainable growth
ESG - Continuously rethinking what we do and how we do it Our commitment to sustainable growth Validated Science-Based GHG reduction target 2025 Annual 2025 TCFD Report 2025 TNFD Report 2025 Group Sustainability Report Integrated Report www.sappi.com/investors www.sappi.com/sustainable-purpose Rated
Slide 21: Outlook
Outlook 21
Slide 22: Outlook
Outlook Demand Pricing Costs • Demand for DWP is expected to remain • Hardwood DWP prices have increased • The Middle East conflict has further strong further in recent weeks, rising to increased uncertainty in global markets • In North America, sales volumes are approximately US$880 per ton and con
Slide 23: Outlook continued
Outlook continued Strategic Capital Guidance for focus allocation Q3 FY26 • We remain focused on executing the • Capital expenditure for FY2026 has been • We are adopting a cautious outlook due to: 'Back to Basics’ phase of our Thrive reduced by a further US$10 million to • Continued market uncertai
Slide 24: Thank you
Thank you 24
Slide 25: Supplementary information
Supplementary information 25
Slide 26: Adjusted EBITDA and operating profit
Adjusted EBITDA and operating profit* 500 391 371 400 337 318 300 290 259 300 240 226 225 203 US$ million 180 177 168 167 161 200 148 145 132 130 120 116 112 111 107 106 101 98 92 90 86 85 80 100 65 64 52 41 31 30 19 16 0 -1 -5 -100 -133 -200 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q
Slide 27: Plantation fair value price adjustment: segment split
Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Pulp - (17) (16) - (9) (91) Packaging and speciality papers (1) 1 6 4 - (10) Graphic papers - (1) 1 1 - - Group (1) (17) (9) 5 (9) (101) 27
Slide 28: Planned shut schedule FY25 and FY26
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 • Q2 FY25 shut cost impact was US$78 million • US$58 million for Ngodwana and Saiccor Mills, and US$20 mil
Slide 29: Packaging and speciality papers production facilities
Packaging and speciality papers Production facilities Alfeld Mill (Germany) Gratkorn Mill (Austria) Stanger Mill (South Africa) Flexible packaging paper, Label paper Tissue paper paperboard, containerboard, release liner, label paper, functional paper Carmignano Mill (Italy) Maastricht Mill (Netherl
Slide 30: Product portfolio
Product portfolio • Dissolving wood pulp • Flexible packaging • Label paper and • Coated woodfree • Fibrillated cellulose (DWP) release liner paper • Paperboard • Lignosulphonates • High-yield pulp (HYP) • Containerboard • Casting & release • Coated mechanical paper paper • Biochemicals • Dye sublim
Slide 31: Sappi Europe in local currency (EUR)
Sappi Europe In local currency (EUR) Q2 FY26 Q1 FY26 Q2 FY25 Sappi Europe Tons sold (‘000) 499 461 491 - Packaging and speciality papers 132 110 118 900 25% 800 20% - Graphic papers 367 351 373 700 600 15% 500 Revenue 492 457 523 400 10% 300 5% Price/Ton 986 991 1,065 200 0% 100 0 -5% Cost/Ton* 996
Slide 32: Coated paper deliveries and prices Western Europe
Coated paper Deliveries and prices Western Europe* 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 CWF demand MCR demand CWF 100 gsm sheets LWC 60 gsm offset reels * Western Europe shipments, including export. Source: Cepifine, Cepipr
Slide 33: Sappi North America in local currency (US$)
Sappi North America In local currency (US$) Q2 FY26 Q1 FY26 Q2 FY25 Sappi North America Tons sold (‘000) 352 335 362 - Pulp* 96 100 105 500 25% - Packaging and speciality papers 150 132 127 400 20% 15% - Graphic papers 106 103 130 300 10% 200 Revenue 420 395 440 5% 100 0% Price/Ton 1,193 1,179 1,215
Slide 34: Coated paper deliveries and prices United States
Coated paper Deliveries and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 Domestic CWF shipments Domestic CWF purchases RISI price CFS #3 60 lb rolls * US industry purchases are defined as industry shipments plus imports
Slide 35: SBS production, shipments and prices United States
SBS Production, shipments and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Producti
Slide 36: Sappi Southern Africa in local currency (ZAR)
Sappi Southern Africa In local currency (ZAR) Q2 FY26 Q1 FY26 Q2 FY25 Sappi Southern Africa Tons sold* (‘000) 389 416 386 - Pulp 250 279 249 500 35% - Packaging and speciality papers 107 101 110 400 30% 25% - Graphic papers 32 36 27 300 20% 200 15% Revenue* 5,227 5,873 6,283 10% 100 Price/Ton* 13,43
Slide 37: Paper pulp prices
US$/ton 1,000 1,200 1,400 1,600 1,800 400 600 800 2-Jan-19 2-Mar-19 2-May-19 2-Jul-19 Source: FOEX, CCF group, RISI. 2-Sep-19 2-Nov-19 2-Jan-20 2-Mar-20 Paper pulp Prices 2-May-20 2-Jul-20 2-Sep-20 2-Nov-20 2-Jan-21 NBSK Europe (US$) NBSK Europe (EUR) 2-Mar-21 2-May-21 2-Jul-21 2-Sep-21 2-Nov-21 2-J
Slide 38: Dissolving wood pulp prices
US$/ton 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 600 650 700 750 800 850 900 950 Jan 2019 Source: CCF Group. Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Imp SW DWP Dissolving wood pulp Prices Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 202
Slide 39: Textile fibre prices
CNY\ton 5,000 0 10,000 15,000 20,000 25,000 Jan 2019 Source: CCF Group. Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Textile fibre Prices Jul 2020 Oct 2020 Jan 2021 Cotton 3128 Apr 2021 Jul 2021 Oct 2021 Jan 2022 Apr 2022 Jul 2022 Oct 2022 VSF 1.5D*38mm Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 A
Slide 40: Cash flow
Cash flow US$m Q2 FY26 Q1 FY26 Q2 FY25 Cash generated from operations 40 63 78 Movement in working capital (7) 10 4 Closure and restructuring costs paid (10) (8) (2) Finance costs paid (35) (14) (2) Finance income received 2 3 4 Taxation (paid) refund 1 (1) (21) Dividend paid - - (85) Cash generated
Slide 41: Earnings reconciliation to reported operating profit
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q2 FY26 Q1 FY26 Q2 FY25 Adjusted EBITDA* 52 90 107 Plantation fair value price adjustment (101) (9) (17) EBITDA excluding special items (49) 81 90 Depreciation and amortisation (84) (82) (71) Operating pro
Slide 42: Four key messages to shareholders
Four key messages to shareholders Focus on reducing Maximise earnings leverage growth 1 2 • Target <US$1 billion net debt • EBITDA growth as we ramp-up Somerset Mill PM2 • Capex reduction of >US$200m vs FY25 • ROCE target of WACC +2% consistently Capital allocation Strategic portfolio priorities Enh
Slide 43: 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 44: Thank you
Thank you 44