Slide 1: Q3 FY26 financial results
Steve Binnie Chief Executive Officer, Sappi Limited 06 August 2026 Q3 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: Q3 FY26 in context: improved North American performance offset by headwinds
Q3 FY26 in context Improved North American performance partially offset significant market and cost headwinds Quarter Profitability Adjusted EBITDA* Adjusted EBITDA* margin US$ million % 80 6.1 • Adjusted EBITDA of US$53 million in line with updated guidance • North America delivered improved profit
Slide 4: Earnings headwind: DWP market prices and ZAR/US$
Q3 FY26 in context Earnings headwind: DWP market prices and ZAR/US$ ZAR/US$ exchange rate vs Pulp segment average net selling price 20 1,000 19 950 18 900 17 850 US$ / ZAR 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 Q4 FY17
Slide 5: Dissolving wood pulp market pricing dynamics
Q3 FY26 in context Dissolving wood pulp market pricing dynamics Dissolving wood pulp market prices Textile fibre market price 1,250 20,000 1,200 1,150 18,000 1,100 16,000 1,050 1,000 14,000 CNY\ton US$/ton 950 900 12,000 850 10,000 800 750 8,000 700 6,000 650 600 4,000 Apr 2023 Apr 2024 Apr 2025 Apr
Slide 6: Earnings driver: Somerset Mill PM2 ramp-up
Q3 FY26 in context Earnings driver: Somerset Mill PM2 ramp-up Sappi North America packaging and speciality papers SBS market price 200 1,600 Record volumes 180 1,550 US$40 – US$60/ton price increase from July in the quarter 1,500 160 Sales volumes - tons 1,450 140 1,400 120 US$ / ton 1,350 100 1,300
Slide 7: Graphic paper market pricing dynamics
Q3 FY26 in context Graphic paper market pricing dynamics United States* coated paper prices Western Europe* coated paper prices 1.8 1.8 1.7 1.7 1.6 1.6 1.5 1.5 1.4 1.4 1.3 1.3 1.2 1.2 1.1 1.1 1.0 1 0.9 0.9 0.8 0.8 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1
Slide 8: Adjusted EBITDA reconciliation Q3 FY25 to Q3 FY26
Adjusted EBITDA* reconciliation Q3 FY25 to Q3 FY26 120 Depressed selling prices across many of our product categories, particularly DWP 100 80 60 US$ million 40 20 0 (20) (40) (60) 80 6 (28) 7 9 (5) (16) 53 Q3 FY25 Adjusted Sales volume Price & mix Variable & delivery Fixed costs Other Currency conv
Slide 9: Cost inflation developments: major variable input costs
Cost inflation developments Major variable input cost/ton impact since Q1 FY22 1.8 Quarter-on-quarter* 1.6 • Increasing wood, chemicals and delivery costs • Purchased pulp costs were relatively stable, and energy costs were 1.4 lower 1.2 Cost outlook 1.0 • Elevated geopolitical tensions have sustain
Slide 10: Escalating sulphur costs adversely impacting South African business
Cost inflation developments Escalating Sulphur costs adversely impacting South African business Sulphur market*: Middle East Sulphur market outlook 1,400 • The market has tightened severely due to the Strait of Hormuz; 1,200 58% of global export volume comes from the Arab Gulf • Sulphur market price
Slide 11: Logistics cost escalation
Cost inflation developments Logistics cost escalation World shipping container index Logistics costs update • The increased fuel shipping surcharges heavily impact our South African logistics costs due to the ongoing Middle East crisis • Substantial increases in diesel prices impact domestic logisti
Slide 12: Net debt/Adjusted EBITDA development
Net debt/Adjusted EBITDA* development Leverage covenant testing remains suspended until March 2027 2,400 8.0 6.1x 6.5x 2,200 7.0 6.0 2,070 2,000 2,056 2,055 1,997 1,964 1,951 1,947 1,946 5.0 1,920 1,917 1,800 US$ million 1,793 4.0 1,670 1,600 3.0 1,530 1,400 1,422 2.0 1,406 1,176 1,163 1,366 1,340 1
Slide 13: Debt maturity profile and liquidity
Debt maturity profile* Fiscal years Liquidity remained healthy during the quarter Liquidity Debt maturity 800 800 700 700 548 600 600 2028 includes €400m bond US$ million Includes 2032 579 500 500 €300m bond 2032 343 400 400 US$221m bond 300 300 240 221 171 143 200 200 88 204 66 66 100 100 45 37 37
Slide 14: Cash flow and capex: disciplined capital allocation
Cash flow and capex Maintaining a disciplined approach to capital allocation Cash flow Capital expenditure 1,400 600 1,267 1,200 500 1,000 800 761 659 400 643 Target: <US$275m US$ million US$ million 600 550 FY26 estimated at 472 506 US$240m 443 400 362 300 256 210 200 155 138 29 29 200 0 -86 -200 1
Slide 15: Thrive strategy: '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 16: Quantified self-help pillars
Quantified self-help pillars Disciplined Optimise capital Deleveraging portfolio allocation Somerset Mill PM2 ramp-up Capex Multi-year deleveraging path to restore balance • PM2 is a world-class asset and the ramp-up is • FY26 ~US$240 million < US$275 million target sheet flexibility and expand capa
Slide 17: Where Sappi can win through the cycle
Where Sappi can win through the cycle Leveraging advantaged assets, growth markets and portfolio optimisation to drive resilient earnings growth • Strong packaging and speciality paper assets in North America and Packaging & speciality South Africa, positioned in structurally growing end markets pap
Slide 18: Proposed joint venture with UPM: status
Proposed joint venture (JV) with UPM Status – progressing to plan 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 28 May 2026 Signed transaction agreements and secured bank financing of €600 million
Slide 19: Segmental overview
Segmental overview 19
Slide 20: Pulp: Summary Q3 FY26
Summary Q3 FY26 Pulp Sales tons Selling price per ton EBITDA* margin -1% y-o-y -4% y-o-y 8.3% 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 Q
Slide 21: Packaging and speciality papers: Summary Q3 FY26
Summary Q3 FY26 Packaging and Sales tons Selling price per ton EBITDA* margin speciality papers 450 +14% y-o-y flat 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 2
Slide 22: Graphic papers: Summary Q3 FY26
Summary Q3 FY26 Graphic Sales tons Selling price per ton EBITDA* margin papers 1000 -6% y-o-y flat y-o-y 5.4% 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 23: Regional segments: Summary Q3 FY26
Regional segments Summary Q3 FY26 Sappi Europe Sappi North America Sappi Southern Africa Sales tons Sales tons Sales tons** -6% y-o-y +17% y-o-y -3% y-o-y Selling price per ton (EUR) Selling price per ton (US$) Selling price per ton (ZAR) -2% y-o-y -4% y-o-y -10% y-o-y Variable cost per ton (EUR) Va
Slide 24: Outlook
Outlook 24
Slide 25: Outlook: demand, pricing, costs
Outlook Demand Pricing Costs • Healthy VSF market fundamentals • The lag benefit of hardwood DWP price • Elevated geopolitical tensions have continue to underpin DWP demand increases realised during the third quarter sustained pressure on energy, chemical • Sentiment in global packaging and is expec
Slide 26: Outlook continued: strategic focus, capital allocation, Q4 guidance
Outlook continued Strategic Capital Guidance for focus allocation Q4 FY26 • We remain focused on executing the • Capital expenditure for FY2026 is • Q4 FY26 Adjusted EBITDA is expected to 'Back to Basics’ phase of our Thrive expected to be ~US$240 million; slightly be materially above Q3 FY26 strate
Slide 27: Thank you
Thank you 27
Slide 28: Supplementary information
Supplementary information 28
Slide 29: Plantation fair value price adjustment by segment
Plantation fair value price adjustment gain/(loss) Segment split US$ million Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Pulp - (17) (16) - (9) (91) (104) Packaging and speciality papers (1) 1 6 4 - (10) (46) Graphic papers - (1) 1 1 - - (2) Group (1) (17) (9) 5 (9) (101) (152) 29
Slide 30: 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$20 mil
Slide 31: Packaging and speciality papers production facilities
Packaging and speciality papers Production facilities Alfeld Mill (Germany) Gratkorn Mill (Austria) Stanger Mill (South Africa) Flexible packaging paper, Label paper Tissue paper paperboard, containerboard, release liner, label paper, functional paper Carmignano Mill (Italy) Maastricht Mill (Netherl
Slide 32: Product portfolio
Product portfolio • Dissolving wood pulp • Flexible packaging • Label paper and • Coated woodfree • Fibrillated cellulose (DWP) release liner paper • Paperboard • Lignosulphonates • High-yield pulp (HYP) • Containerboard • Casting & release • Coated mechanical paper paper • Biochemicals • Dye sublim
Slide 33: Sappi Europe in local currency (EUR)
Sappi Europe In local currency (EUR) Q3 FY26 Q2 FY26 Q3 FY25 Sappi Europe Tons sold (‘000) 452 499 479 - Packaging and speciality papers 126 132 124 900 25% 800 20% - Graphic papers 326 367 355 700 600 15% 500 Revenue 466 492 503 400 10% 300 5% Price/Ton 1,031 986 1,050 200 0% 100 0 -5% Cost/Ton* 1,
Slide 34: Coated paper deliveries and prices Western Europe
Coated paper Deliveries and prices Western Europe* 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 CWF demand MCR demand CWF 100 gsm sheets LWC 60 gsm offset reels * Western Europe shipments, including export. Source: Cepifine, Cepipr
Slide 35: Sappi North America in local currency (US$)
Sappi North America In local currency (US$) Q3 FY26 Q2 FY26 Q3 FY25 Sappi North America Tons sold (‘000) 380 352 326 - Pulp* 89 96 83 500 25% - Packaging and speciality papers 186 150 132 400 20% 15% - Graphic papers 105 106 111 300 10% 200 Revenue 454 420 404 5% 100 0% Price/Ton 1,195 1,193 1,239 0
Slide 36: Coated paper deliveries and prices United States
Coated paper Deliveries and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 26 Domestic CWF shipments Domestic CWF purchases RISI price CFS #3 60 lb rolls * US industry purchases are defined as industry shipments plus imports
Slide 37: SBS production, shipments and prices United States
SBS Production, shipments and prices United States* 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Pr
Slide 38: Sappi Southern Africa in local currency (ZAR)
Sappi Southern Africa In local currency (ZAR) Q3 FY26 Q2 FY26 Q3 FY25 Sappi Southern Africa Tons sold* (‘000) 381 389 391 - Pulp 250 250 261 500 35% - Packaging and speciality papers 102 107 106 400 30% 25% - Graphic papers 29 32 24 300 20% 200 15% Revenue* 5,277 5,227 6,023 10% 100 Price/Ton* 13,85
Slide 39: Paper pulp prices
US$/ton 1,000 1,400 1,600 1,800 1,200 400 600 800 2-Jan-19 2-Mar-19 2-May-19 2-Jul-19 2-Sep-19 2-Nov-19 Source: FOEX, CCF group, Fastmarkets. 2-Jan-20 2-Mar-20 2-May-20 Paper pulp Prices 2-Jul-20 2-Sep-20 2-Nov-20 2-Jan-21 NBSK Europe (US$) NBSK Europe (EUR) 2-Mar-21 2-May-21 2-Jul-21 2-Sep-21 2-Nov
Slide 40: Dissolving wood pulp prices
US$/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 41: 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 42: Cash flow
Cash flow US$m Q3 FY26 Q2 FY26 Q3 FY25 Cash generated from operations 35 40 55 Movement in working capital 19 (7) (22) Closure and restructuring costs paid (11) (10) - Finance costs paid (19) (35) (35) Finance income received 2 2 3 Taxation (paid) refund - 1 (4) Cash generated from operating activit
Slide 43: Adjusted EBITDA and operating profit reconciliation
Adjusted EBITDA and operating profit Earnings reconciliation to reported operating profit US$m Q3 FY26 Q2 FY26 Q3 FY25 Adjusted EBITDA* 53 52 80 Plantation fair value price adjustment (152) (101) (9) EBITDA excluding special items (99) (49) 71 Depreciation and amortisation (78) (84) (76) Operating p
Slide 44: 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 45: Sustainability is at the core of our business and work culture
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 46: 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 47: Thank you
Thank you 47