Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for

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Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Steve Binnie
Chief Executive Officer, Sappi Limited
30 July 2020

Q3 FY20
financial
results
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
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 indicate future earnings, savings, synergies, events, trends, plans or objectives. The words “believe”, “anticipate”, “expect”, “intend”, “estimate”, “plan”, “assume”, “positioned”, “will”, “may”, “should”,
“risk” and other similar expressions, which are predictions of or indicate future events and future trends and which do not relate to historical matters, identify forward-looking statements. In addition,
this document includes forward-looking statements relating to our potential exposure to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity price risk.
You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our
actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past
results, performance
or achievements). Certain factors that may cause such differences include but are not limited to:
   •   The highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw
       material, energy and employee costs, and pricing)
   •   The impact on our business of adverse changes in global economic conditions
   •   The Covid-19 pandemic
   •   Unanticipated production disruptions (including as a result of planned or unexpected power outages)
   •   Changes in environmental, tax and other laws and regulations
   •   Adverse changes in the markets for our products
   •   The emergence of new technologies and changes in consumer trends including increased preferences for digital media
   •   Consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed
   •   Adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems
   •   The impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced
       in connection with dispositions or with integrating acquisitions or implementing restructurings or other strategic initiatives, and achieving expected savings and synergies, and
   •   Currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.

Regulation G disclosure
Certain non-GAAP financial information is contained in this presentation that management believe may be useful in comparing the company’s operating results from period to period. Reconciliation’s
of certain of the non-GAAP measures to the corresponding GAAP measures can be found in the quarterly results booklet for the relevant period. These booklets are available on our website:
https://www.sappi.com/quarterly-reports.
                                                                                                                                                                                                                    2
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Highlights—Q3 FY20
Excluding special items*

                                                                  • Severe impact from Covid-19 on profitability
     EBITDA* US$26m                                               • Significant declines in demand and lower sales
      Down 78% YOY                                                  prices for graphic paper and dissolving pulp
                                                                  • Packaging and speciality papers segment continued
     Net debt/EBITDA                                                to grow volumes and profitability
          4.0X**                                                  • Focus on preservation of liquidity and cash flow
                                                                  • Liquidity comprised cash on hand US$190 million
                                                                    and US$503 million from undrawn committed RCF
     EPS* (10) US cents

*  Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
   www.sappi.com) for a definition of special items.
                                                                                                                                                                                                3
** Adjusted covenant leverage ratio for information purposes. Covenant suspension to March 2021
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
EBITDA* reconciliation
Q3 FY20 to Q FY319

              130
                90
                50
US$ million

                10
               (30)
               (70)
              (110)
              (150)
                           118                (112)                  (127)                    76                49         5           17               26
                      Q3 FY19 EBITDA     Sales volume             Price & mix         Variable & delivery   Fixed costs   Other   Exchange rate   Q3 FY20 EBITDA
                                                                                            costs

1. All variances were calculated excluding Sappi Forestry.
2. ‘Currency conversion’ reflects translation and transactional effect on consolidation.
3. EBITDA* = EBITDA excluding special items.                                                                                                                       4
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Product contribution split—LTM

             EBITDA excluding special items                                                                    Operating profit excluding special items

                                                                                                                                      10%
                                                26%                              Dissolving pulp
                    37%                                                                                                     35%                           34%
                                                                                                                                                           38%
                                                                                 Packaging and
                                                                                 specialities
                                                                                 Graphics
                                                                                                                               56%
                                         37%                                                                                              27%

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet
  (available on www.sappi.com) for a definition of special items.                                                                                                                5
  Data above excludes treasury operations and insurance captive.
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Segment volume & EBITDA* margin

   1,100                                                                        350                                                            20.0%
   1,000                                                        8.0%            300
     900                                                                                                                                       15.0%
     800                                                        3.0%            250
                                                                                                                                               10.0%
     700                                                        -2.0%           200
     600                                                                                                                                       5.0%
                                                                -7.0%           150
     500
     400                                                        -12.0%          100                                                            0.0%

                        Graphics volume     Graphics margin                     Packaging and specialities volume   Packaging and specialities margin

                                            400                                                        40%
                                            350
                                                                                                       30%
                                            300
                                            250                                                        20%
                                            200
                                                                                                       10%
                                            150
                                            100                                                        0%

                                                       Dissolving pulp volume         EBITDA margin
EBITDA* = EBITDA excluding special items.                                                                                                             6
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Maturity profile*
Fiscal years

          600
                                                                                                                             530
          500
                                                                                  459
                                                                                                              EUR450m bond
                                                                                              EUR350m bond
          400
    US$ million

          300
                                                                 237
                                                                                                                                                         221
                      190
          200                                                                                                                             US$221m bond
                                   144
                                                                                               113    87
          100          65
                           39              43                  46                                                                         51
                        23                                                               22                   25
                  0
                            2020           2021                2022               2023            2024        2025           2026         2027           2032
                                                              Cash         Short-term         SPH term debt   Securitisation        SSA   RCF

*      Graph excludes US$97 million in IFRS16 leases – Average maturity of four years.                                                                          7
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Capex

              600

              500

              400
US$ million

              300

              200

              100

               0
                    2016   2017             2018                   2019   2020E
                              Maintenance   Efficiency and expansion

                                                                                  8
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Segmental overview

                            Sappi Europe
      Sappi North America

                             Sappi South Africa

                                                  9
Q3 FY20 financial - Steve Binnie Chief Executive Officer, Sappi Limited 30 July 2020 - Reserved for
Sappi Europe

                                                                    • Declines in graphic paper demand across Europe
          Sales tons -32%                                             and key export markets
           year-on-year                                             • 369kt commercial downtime required,
                                                                      approximately US$90m EBITDA impact
      Variable costs -6%                                            • Certain packaging and speciality paper grades
        year-on-year                                                  unaffected by Covid-19 – profitability increased
                                                                    • Variable costs lower; driven by pulp, latex and wood
                                                                      costs
    Packaging EBITDA*
                                                                    • Fixed cost lower due to reduced headcount and
         up 18%
                                                                      temporary unemployment
                                                                    • Alfeld PM3 operational again as of 20th July
*   Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
    www.sappi.com) for a definition of special items.                                                                                                                                            10
Sappi North America

                                                                   • Strong growth in packaging volumes, with improved
           Sales tons -4%*                                           product mix towards higher value products
            year-on-year                                           • Graphic paper volumes severely impacted by
                                                                     economic lockdown in the US, commercial
      Packaging and                                                  downtime of 107kt
   specialities vol +67%                                           • Lower DP demand resulted in additional paper pulp
       year-on-year                                                  production at Cloquet
                                                                   • Fixed costs declined 14% due to SG&A savings and
     Variable costs -10%                                             furloughing of some employees
        year-on-year

* Volumes down 18% excluding Matane Mill.
** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
                                                                                                                                                                                                11
   www.sappi.com) for a definition of special items.
Sappi South Africa

                                                                    • DP sales volumes 21% below the prior quarter
          Sales tons -17%                                             necessitating 76kt commercial downtime
           year-on-year                                             • DP US$ sales prices continued to decline; benefit
                                                                      from weaker US$/ZAR exchange rate
          R200m savings                                             • Packaging volumes and prices were flat year-on-year
            from shut
                                                                    • Newsprint and uncoated woodfree volumes severely
          postponement
                                                                      impacted by lockdown in SA (– 62%)
                                                                    • Lower wood, chemicals and energy costs resulted in
           EBITDA* -42%
                                                                      variable costs declining 12% year-on-year
            year-on-year
                                                                    • Postponement of annual maintenance shuts
                                                                      resulted in 11% reduction in fixed cost
*   Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
    www.sappi.com) for a definition of special items.                                                                                                                                            12
Covid-19 update
Cash management

• Financing activities
 – Negotiated covenant suspension for 12 months (to March 2021)
 – Repaid SA debt maturities with a 12 month bank bridge facility and new SSA07 public bond

• Reviewed capital expenditure commitments—US$100m reduction in H2
 – Force majeure on Saiccor Mill expansion project —completion now expected in Q3 FY2021
 – Delayed shuts at Ngodwana, Saicccor and Tugela till FY2021

• Revised procurement savings target for 2020—from US$64m to US$100m

• Fixed costs savings of $67m (15%) in the quarter – some relates to
  delayed shuts

                                                                                              13
Covid-19 update
Markets

• Graphic papers
 – Lower advertising spend and lockdowns resulting in significant retail slowdown causing significant reduction in graphic papers
   demand globally
 – Demand declines of approximately -40% in Europe for CWF and CM, and -35% in US.
 – Newsprint and Office paper heavily impacted by lockdowns in SA, demand -60% in Q3, office paper now recovering
 – Declining input costs supported margins
 – Prices drifted downwards on lower costs—industry managing excess capacity through temporary
   shutdowns

• Packaging and speciality papers
 – Many categories positively affected to date—food and hygiene related products
 – Others negatively impacted by lockdowns—advertising or industry related
 – Trials for new products started to resume, continued ramp up of Somerset and
   Maastricht
 – Lower pulp and chemical prices supported margins                                                                                 14
Covid-19 update
Markets

• Dissolving pulp
 – Retail lockdowns in many geographies have impacted entire textile supply chain
   – Growth in e-commerce/online sales not enough to offset impact on brick and mortar stores
 – Demand down approximately 29% in Q3, pace of recovery picking up
 – Customers plants recommenced production in June
 – Exchange rate movements lowering costs for many producers; DP price trending lower in line with VSF pricing
 – VSF production increasing as lockdowns ease — excess capacity remains an issue with lower demand
 – 86,000 tons of BCTMP and kraft paper pulp sales volumes included in the segment – pricing under pressure

                                                                                                                 15
US retail clothing sales start to recover in May, inventories
decline

US$m                                 US$m

Source: US Federal Reserve

                                                                16
Sappi’s 2025 strategy will
cover two phases

                             17
Phase 1
Strengthen balance sheet (2020–2021)

Objective               Strategy

 Reduce debt and         • Complete approved projects on
                         time and within budget
 maximise cash
                         • Drive further margin
 generation              improvement opportunities
                         • Investigate capacity
                         expansions
                         • Investigate new growth
                         opportunities

                                                           18
Phase 2
Invest for profit growth (2022+)

Objective                 Strategy
                           • Deliver smaller growth
 Invest in new             opportunities
 opportunities             • Make decision on expansions and
                           conversions
                           • Commercialise new products at
                           scale
                           • Execute sustainability strategy
                           • Invest in R&D

                                                               19
Our business strategy
How we’ll get there

Through collaboration and innovation we will
grow profitably, using our strength as a sustainable
and diversified global woodfibre group, focused on
dissolving pulp, graphic, packaging and speciality
papers, and biomaterials.

                                                       20
Group strategy
Update

• Achieve cost advantages
 – Group efficiency and procurement saving initiatives in FY20: US$100m—an increase of US$36m
 – Saiccor Mill expansion delay due to Force Majeure, project has commenced; Completion in Q3 FY21—will improve efficiency and
   lower costs once complete
• Rationalise declining businesses
 – Rapidly matching production to demand; Stockstadt Mill PM2 and Westbrook PM9 to shut
• Maintain a healthy balance sheet
 – Covenant suspension through to March 2021
 – Strict focus on cash generation and liquidity
 – Shifted US$100m of capex to 2021
• Accelerate growth in higher-margin growth segments
 – Ramp up of board grades at Somerset and Maastricht Mills—somewhat slower due to delays in trials
   which are now recommencing
 – Continue to evaluate barrier coating and technology opportunities for growth                                                  21
Outlook

• Estimate dissolving pulp and graphic paper volumes to be 75% and 70% of prior year levels respectively
• Market for DP recovering faster than this; pricing under pressure, resulting in additional paper pulp at Cloquet
• Port and shipping issues in South Africa hampering a further recovery in sales volumes
• Packaging and specialities segment continues to grow, certain grades more resilient during the crisis and release liner
  and digital imaging expected to accelerate as lockdowns ease and industries recover
• Slow recovery underway in the graphic paper segment as economies open up and retail and advertising activity
  increase
• Saiccor expansion project fully underway in July; completion estimated in the third quarter of FY2021
• Focus remains on liquidity and cash flow

                                                                                                                            22
Thank you
            23
Supplementary
information
                24
EBITDA and operating profit
Excluding special items*

        250

        200

                                                                                                        224
                                                       221

                                                                                211
                              208

                                                     152
                       201

                                                                                                      148

                                                                                                                     197
                             145

                                                                              142
                      136

                                                                                                                                 187

                                                                                                                                                         185
                                                                                                                   128
        150

                                                                   172

                                                                                                                               117

                                                                                                                                                       109
                                                                  105
                                          155

                                                                                            155

                                                                                                                                                                    139
                                         93

                                                                                                                                                                                131
        100

                                                                                          85

                                                                                                                                             118

                                                                                                                                                                       62
    US$ million

                                                                                                                                                                                   52
                                                                                                                                           48
            50

                                                                                                                                                                                            26
                  0

         -50

                                                                                                                                                                                                  -52
      -100

                                                                                                        EBITDA
*    Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
     www.sappi.com) for a definition of special items.
                                                                                                                                                                                                        25
Net debt/EBITDA* development

              2,600
                                                                                                                                                   4.1                          4.5

              2,400                                                                                                                                                             4.0

                                                                                                                                                                                3.5
              2,200                     2.6
                                                                                                                                                                                3.0
              2,000
                                                                                                                                                                                2.5

                                                                                                                                                                         1977
                                                                                                                                                         1,916
              1,800

                                                                                                                                                                 1,879
US$ million

                                                                                                                                                                                2.0
                      1,734

                                                                                                                                         1,728
              1,600

                                                                                                                                 1,680
                              1,652

                                                                                                                                                                                1.5

                                                                                                1,632

                                                                                                         1,603
                                      1,583

                                                                                                                 1,568

                                                                                                                         1,557
              1,400

                                                                                                                                                 1,501
                                                                                                                                                                                1.0
                                              1,408

                                                                                        1,349
                                                      1,338

                                                              1,329

                                                                               1,322
                                                                       1,318
              1,200                                                                                                                                                             0.5

              1,000                                                                                                                                                             0.0

                                                              Net debt                    Net debt/LTM EBITDA**
* EBITDA is excluding special items.
** The covenant Net debt/LTM EBITDA calculation has adjustments and therefore differs from that shown above.                                                                          26
Global packaging and speciality papers production sites

    Alfeld Mill (Germany)              Stockstadt Mill (Germany)                    Condino Mill (Italy)                Somerset Mill (USA)         Tugela Mill (South Africa)

  Flexible packaging, label paper,      Label paper, flexible packaging,     Flexible packaging, silicone base paper,   Label paper, paperboard,           Containerboard
paperboard, containerboard, silicone            containerboard                        dye sublimation paper                flexible packaging
            base paper,
          functional paper

Maastricht Mill (Netherlands)            Lanaken Mill (Belgium)              Rockwell Solutions (Scotland)              Cloquet Mill (USA)         Ngodwana Mill (South Africa)

            Paperboard                          Functional paper                     Functional papers and                    Label paper                  Containerboard
                                                                                       flexible packaging

   Ehingen Mill (Germany)                Carmignano Mill (Italy)                  Westbrook Mill (USA)

          Containerboard                 Flexible packaging, label paper,          Casting and Release paper
                                       inkjet paper, dye sublimation paper                                                                                                       27
Packaging and speciality papers
Sappi Europe

                                  28
Packaging and speciality papers
Sappi North America

                                                                           Paperboard
                  C1S Paper
                                                                              (SBS)

                                                                                                           Food service
    Label paper               Bag paper      Bristols     Folding carton                Litho lamination
                                                                                                              board

                                              Spectro        Proto C1S                                      LusterFSB
     LusterCote               LusterPrint                                                  Proto Litho
                                            (C1S & C2S)     Spectro C1S                                     LusterPlate

                                                                                                                          29
Packaging and speciality papers volume growth 2015 to 2020

1,400

1,200                                                                                                          1,129

                                                                                        1,009
1,000
                   884                    887
                                                                 854

 800

 600

 400

 200

   -
               2015                       2016                  2017                    2018                   2019                   2020F
        Flexpack     Label   Paperboard    Self Adhesives   Digital Imaging   Functional papers   Casting   Containerboard   Tissue   Other

                                                                                                                                              30
Sustainability focus
EU consumer and brand owner

• Desired outcome
  - Prevent or reduce the impact of packaging waste
    on the environment by avoiding and recycling
    packaging waste; preference for Monomaterials

• Consequences
  - Product design requires a ‘designed for recycling’
    approach
  - Recycling systems to be established and/or
    heavily expanded
  - Rewards easy to recycle packaging
  - Replacement for paper laminates and aluminium
  - Huge potential for barrier papers and board
  - Low carbon footprint is a competitive advantage
  4EverGreen initiative just started with more than 60
  participants

                                                         31
                                                              31
Paperboard segments
North America
Quality

                                                                                                                                                  Premium
                                                                                                                   Premium
                                                                                                                                          Spectro (commercial print,
                                                                                                                (92 brightness)            premium folding carton)
                                                                                                                400k tons (10%)
                                                                       Performance
                                                                      (88 Brightness)                                                            Performance
                                                                      2.0m tons (45%)                                                        Proto and Proto Litho
                                                                                                                                           (folding carton and litho
                   Food service                                                                                                            lamination applications)
                    & cup stock
                  (88 brightness)
                  2.0m tons (45%)                                                                                                               Food service
                                                                                                                                          LusterFSB and LusterCup
                                                                                                                                          (plates, trays & cup stock)

                                                                                                                                  Price
Sources: RISI, Poyry, & Chartic; premium volume includes a range of premium folding carton from Sappi estimations.                                                      32
Total containerboard market—local market share
South Africa
                                                Includes Cape Kraft and Enstra Mills
   1,020                                                                                          50%                             Other+Import
                                                                                                                      Neopak
                    44%
                                                                                                  45%
   1,010                                                                                                                                          Sappi

                                                             37%              37%         37%     40%       New Era
   1,000                                 36%
                                                                                                  35%
     990
                                                                                                  30%
                                                                                                        Corruseal
     980                                                                                          25%

                                                                                          1,012
                                                                                                  20%

                                                                               1,000
     970
                                          992

                                                                                                  15%
     960
                                                                                                  10%
                                                              967
                     966

     950                                                                                                                                         Mondi
                                                                                                  5%                  Mpact

     940                                                                                          0%
                    FY15                 FY16                FY17             FY18        FY19

                                         Market size (kton)          Sappi market share                                        Market share

The above market size includes virgin and recycled containerboard.                                                                                        33
Market size—paperboard (SBB) Europe
Sappi is no 3 in SBB market in Europe with 12% market share

     760                                                                             10%    12%
                                                                                                                  Others            Sappi
                                                                                                          Burgo
     750
                                                                          8%                10%
                                                                                                   Fedrigoni
     740
                                         8%               8%
     730                                                                                    8%

     720             6%
                                                                                            6%
     710

                                                                                     748
                                                                          735
     700                                                                                    4%
                                                          722                                     Stora
                                         712

     690
                     700

                                                                                            2%
     680                                                                                                                                    Iggesund

     670                                                                                    0%
                    FY15                FY16             FY17            FY18        FY19

                                         Market size (kton)     Sappi market share                                   Market share

Source: Smithers Pira/RISI/Own estimation.                                                                                                        34
Market size—flexible packaging paper Europe
Sappi is the market leader in flexible packaging paper in Europe
                                                                      Capacity limit reached
   1,580                                                                                       14%
                                                                                       13%
                                                                           12%                                               Sappi
   1,560                                                                                             Others
                                                                                               12%
   1,540
                                                                                               10%
                                         9%               9%
   1,520                                                                                                                                Billerud
                     8%
   1,500                                                                                       8%

                                                                                       1,557
   1,480                                                                                       6%

                                                                            1,534
                                                          1,512
   1,460
                                                                                               4%                                       Mondi
                                         1,483

   1,440
                     1,455

                                                                                               2%
   1,420
                                                                                                                                 Ahlstrom
   1,400                                                                                       0%
                    FY15                FY16             FY17              FY18        FY19

                                         Market size (kton)       Sappi market share                          Market share

Source: Smithers Pira/RISI/Own estimation.                                                                                                  35
Market size—label paper Europe
Sappi is focusing on niches within label paper (eg metallisation)

     725                                                                                    7%

                                                                                     6%
                                                                                            6%                                UPM
     720
                                                                          5%
                                                                                            5%
     715

                                                          3%                                4%   Others
     710
                                         2%
                     2%                                                                     3%

                                                                                     719
                                                                          715
     705
                                                          711                               2%
                                         707

                                                                                                                                Brigl
     700
                                                                                            1%
                     703

     695                                                                                    0%
                                                                                                          Feldmühle   Sappi
                    FY15                FY16             FY17            FY18        FY19

                                         Market size (kton)     Sappi market share                            Market share

Source: Smithers Pira/RISI/Own estimation.                                                                                          36
Market size—self-adhesive paper Europe
Sappi is no 3 in Europe after UPM and Ahlstrom
                                                                    Capacity limit reached
     540                                                                                     25%             Others
                                                                                     20%

     530
                                                                                             20%
                                                                         18%                       Delfort
                                                                                                                                       UPM
     520
                                                         13%
                                                                                             15%
     510
                                         11%

                                                                                     533
     500            10%
                                                                                             10%

                                                                          522
     490                                                  512
                                         502

                                                                                             5%
                                                                                                   Sappi
                     491

     480

     470                                                                                     0%                             Ahlstrom
                    FY15                FY16             FY17            FY18        FY19

                                         Market size (kton)     Sappi market share                           Market share

Source: Smithers Pira/RISI/Own estimation.                                                                                              37
Market size—digital solutions Europe
Sappi is market leader in dye sublimation paper in Europe

      70                                                                                    0.3

                                                                                     25%                    Others
      60                                                                                                                                   Sappi
                                                                                            0.25
                                                                        17%
      50
                                                                                            0.2

      40
                                                                                            0.15
      30                                                                                           Hansol

                                                                                     58
                                                                          50
                                                                                            0.1
      20                                                  45
                                         40
                     35

                                                                                                     Beaver
                                                                                            0.05
      10
                                                                                                                                           Neenah

       -                                                                                    0
                                                                                                                     F Schoeller
                    FY15                FY16             FY17            FY18        FY19

                                         Market size (kton)     Sappi market share                                          Market share

Source: Smithers Pira/Pöyry/RISI/Own estimation.                                                                                                   38
Sappi Europe

                                                                                                          Q3 FY20                             Q2 FY20                          Q3 FY19

        Tons sold (‘000)                                                                                                   540                                793                               789

        Sales (EURm)                                                                                                       420                                606                               637

              Price/Ton (EUR)                                                                                              778                                764                               807

              Cost/Ton* (EUR)                                                                                              837                                733                               785

        Operating profit excluding special items** (EURm)                                                                  (32)                                 25                              18

* Sales less operating profit excluding special items divided by tons sold.
** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
   www.sappi.com) for a definition of special items.                                                                                                                                                  39
Coated paper deliveries and prices
Western Europe

       1.2

       1.1

         1

       0.9

       0.8

       0.7

       0.6

       0.5

       0.4

       0.3

       0.2

                             CWF demand                             MCR demand   CWF 100 gsm sheets   LWC 60 gsm offset reels

Western Europe shipments including export.
Source: Cepifine, Cepiprint and RISI indexed to calendar 1Q 2008.                                                               40
Sappi North America

                                                                                                          Q3 FY20                             Q2 FY20                          Q3 FY19

        Tons sold (‘000)                                                                                                   307                                 416                              320

        Sales (USDm)                                                                                                       267                                 387                              343

              Price/Ton (USD)                                                                                              870                                 930                         1,072

              Cost/Ton* (USD)                                                                                              974                                 921                         1,100

        Operating profit excluding special items** (USDm)                                                                  (32)                                   4                             (9)

* Sales less operating profit excluding special items divided by tons sold.
** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
   www.sappi.com) for a definition of special items.                                                                                                                                                  41
Coated paper deliveries and prices
United States of America
       1.2

       1.1

         1

       0.9

       0.8

       0.7

       0.6

       0.5

       0.4

       0.3

       0.2

                                                          Domestic CWF shipments   Domestic CWF purchases

US industry purchases defined as industry shipments, plus imports, less exports.
Source: AF&PA and RISI indexed to calendar Q1 FY08.                                                         42
Sappi South Africa

                                                                                                          Q3 FY20                             Q2 FY20                          Q3 FY19

        Tons sold (‘000)                                                                                                   310                                 389                              375

        Sales (ZARm)                                                                                                     3,506                              3,979                          4,418

              Price/Ton (ZAR)                                                                                          11,310                             10,229                          11,781

              Cost/Ton* (ZAR)                                                                                          10,452                               9,404                        10,459

        Operating profit excluding special items** (ZARm)                                                                  266                                321                               496

* Sales less operating profit excluding special items divided by tons sold.
** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 25 in our Q3 FY20 financial results booklet (available on
   www.sappi.com) for a definition of special items.                                                                                                                                                  43
Paper pulp prices

       1,300                                                                                                                                                                                                                                                      1,100

       1,200
                                                                                                                                                                                                                                                                  1,000
       1,100
                                                                                                                                                                                                                                                                  900
       1,000

                                                                                                                                                                                                                                                                  800
  US$/ton

            900

            800                                                                                                                                                                                                                                                   700

            700
                                                                                                                                                                                                                                                                  600
            600
                                                                                                                                                                                                                                                                  500
            500

            400                                                                                                                                                                                                                                                   400
                                      2-Apr

                                                                                                                                  2-Apr

                                                                                                                                                                                                                                  2-Apr
                                                                                              2-Nov

                                                                                                                                                                                          2-Nov
                                              2-May

                                                                              2-Sep

                                                                                                                                          2-May

                                                                                                                                                                          2-Sep

                                                                                                                                                                                                                                          2-May
                          2-Feb
                              2-Mar

                                                                                      2-Oct

                                                                                                      2-Dec

                                                                                                                      2-Feb
                                                                                                                          2-Mar

                                                                                                                                                                                  2-Oct

                                                                                                                                                                                                  2-Dec

                                                                                                                                                                                                                  2-Feb

                                                                                                                                                                                                                          2-Mar
                  2-Jan

                                                                      2-Aug

                                                                                                              2-Jan

                                                                                                                                                                  2-Aug

                                                                                                                                                                                                          2-Jan
                                                      2-Jun

                                                                                                                                                  2-Jun

                                                                                                                                                                                                                                                  2-Jun
                                                              2-Jul

                                                                                                                                                          2-Jul

                                                                                                                                                                                                                                                          2-Jul
                                  NBSK Europe (US$)                                                             BHKP Europe (US$)                                                           Net BHKP China (US$)
                                  NBSK Europe (EUR)                                                             BHKP Europe (EUR)                                                           BCTMP, HW, Imports China (US$)

Source: FOEX, CCF group, RISI.                                                                                                                                                                                                                                          44
Dissolving pulp prices

          1,100

          1,050

          1,000

           950

           900
US$/ton

           850

           800

           750

           700

           650

           600

                         Imp SW DP   Imp HW DP   China origin DP

Source: CCF group.                                                 45
Textile fibre prices

       3,000

       2,500

       2,000
  US$\ton

       1,500

       1,000

            500

             0

                     Cotton 328   Cotton "A" Index   PSF 1.4 D   VSF 1.2 D   VSF 1.5 D

Source: CCF group.                                                                       46
Cash flow

  US$m                                       Q3 FY20          Q2 FY20          Q3 FY19

  Cash generated from operations                        25              116               118
   Movement in working capital                          20              (14)               20
   Finance costs paid                                  (48)             (18)              (16)
   Finance income received                               1                1                 1
   Taxation (paid) refund                               13              (11)               (5)
   Dividend paid                                          -                -                 -
  Cash generated from operating activities              11               74               118

  Cash utilised in investing activities                (78)             (74)             (135)
   Capital expenditure                                 (74)             (70)             (135)
   Proceeds on disposal of assets                         -                -                1

   Acquisition of subsidiary                            (2)                -                 -
   Other non-current asset movements                    (2)              (4)               (1)
  Net cash generated (utilised)                        (67)                -              (17)

                                                                                                 47
EBITDA and operating profit
Excluding special items* reconciliation to reported operating profit

         US$m                                                                                                         Q3 FY20          Q2 FY20          Q3 FY19
         EBITDA excluding special items*                                                                                         26              131              118
              Depreciation and amortisation                                                                                     (78)             (79)             (70)

         Operating profit excluding special items*                                                                              (52)              52               48

          Special items* - gains (losses)                                                                                       (20)             (29)              (2)
              Plantation price fair value adjustment                                                                              5                3                1
              Acquisition cost                                                                                                     -                -                -
              Net restructuring provisions                                                                                       (5)             (12)                -
              Profit (loss) on disposal and written off assets                                                                    1                 -              (1)
              PPE impairments                                                                                                      -             (11)                -
              Equity investment impairments                                                                                     (10)                -                -
              Fire, flood, storm and other events                                                                               (11)              (9)              (2)
         Operating profit                                                                                                       (72)              23               46

*   Refer to page 25 in our Q3 FY20 results booklet (available on www.sappi.com) for a definition of special items.                                                      48
Thank you
            49
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