Scroll to view more content

“Profitability improved steadily through the year as the challenging destocking cycle of 2023 reversed and ultimately performance exceeded our expectations.”

Nkululeko Sowazi, Chairman

Operating review

Profitability improved steadily through the year as the challenging destocking cycle of 2023 reversed and ultimately performance exceeded our expectations. Boosted by a strong fourth quarter performance, the group delivered Adjusted EBITDA of US$684 million for FY2024. This was against the backdrop of a subdued macroeconomic environment, ongoing low consumer confidence, and persistent geopolitical uncertainty.

A key highlight was the pulp segment’s exceptional performance, fuelled by strong demand for our Verve dissolving wood pulp products, which led to record profitability in the South African region. However, paper markets remained subdued, with the expected recovery in demand after the prolonged destocking phase of 2023 unfolding more slowly than anticipated. Sales volumes steadily improved in the second half of the year but remained below the previous year. Proactive management of capacity utilisation to align with demand, along with inventory optimisation to maintain working capital, positively impacted earnings. Additionally, significant year-on-year fixed costs savings were achieved through our strategic rationalisation actions.

The principles of our Thrive strategy remained a priority with our focus on sustaining our financial health, enhancing trust and driving operational excellence integral to our success. In addition, we made pleasing progress during the year towards our objective of growing the business with the project to convert and expand Somerset Mill PM2 from graphic papers to paperboard progressing on schedule towards commissioning in the third quarter of FY2025.

Strong cash generation by our operations was offset by the closure of the two European paper mills and the increased strategic capital expenditure associated with the Somerset Mill PM2 project. Both of these initiatives will yield substantial benefits in coming years.

Safety

Safety is a fundamental, non-negotiable value at Sappi, seamlessly woven into our strategic framework and embodied in our values statement: As OneSappi, we do business safely, with integrity and courage, making smart decisions that we execute with speed. Recognising that a strong safety culture is vital to our success, we have embedded it across every facet of our operations. This unwavering commitment is a core element of our Thrive strategy, supporting our broader goals of sustainability, operational excellence, and building stakeholder trust. In FY2024, we achieved strong safety performance, with each region reaching its best-ever results. However, these achievements were overshadowed by the tragic loss of a contractor in our Mpumalanga forestry operations, a sobering reminder of the critical need for ongoing vigilance and an unwavering commitment to safety. Our condolences go to the family, friends and colleagues affected, and we remain steadfast in our dedication to preventing such tragedies in the future. Our safety ambition remains zero injuries, and we continue to implement enhanced procedures and focus on improved personal behaviour and leadership engagement.

In July, devastating wildfires ravaged rural KwaZulu-Natal, South Africa, fuelled by extremely dry conditions and high winds. Tragically, seven firefighters from one of our forestry contractors, Farmusa Agric and Forestry Proprietary Limited, lost their lives while aiding a farmer in battling a fire on his property. We extend our sincerest condolences to the families and friends of these brave individuals.

“Demand for dissolving wood pulp (DWP) remained robust throughout the year, with selling prices rallying through the second half.”

Steve Binnie, CEO

Markets

Favourable market conditions were supported by a tight supply landscape and strong demand buoyed by high viscose staple fibre (VSF) operating rates and low inventory levels. Supply was tight following closures at competitors and little additional capacity added in the past two years. The hardwood DWP market price recovered sharply and ended the year at US$960 per ton but overall net US Dollar selling prices for the pulp segment were slightly down year-on-year. Sales volumes declined 5% compared to the prior year primarily due to scheduled maintenance shuts at Ngodwana and Cloquet Mills in the first quarter, which were not in the prior year, and lower high-yield pulp (HYP) sales. Substantial variable cost savings, mainly attributable to lower wood costs in South Africa, boosted profitability of the segment.

Demand for packaging and speciality papers products improved steadily through the year as the destocking cycle of 2023 reversed, leading to an overall 8% increase in sales volumes compared to the prior year. Market dynamics varied across the regions, with North America and South Africa experiencing stronger recoveries and returning to full operating rates. European downstream demand was muted due to lingering poor consumer sentiment. Although higher sales volumes and variable cost savings were achieved, these gains were offset by lower selling prices, leading to margin erosion for the segment.

Graphic papers sales volumes were up 2% from the previous year but the pace of recovery slowed as the year progressed, which suggests a likely permanent structural shift in demand. Lower selling prices were partially mitigated by variable cost savings. The closure of the Stockstadt and Lanaken Mills significantly reduced the fixed cost base and enhanced European capacity utilisation, contributing to improved profitability of the segment compared to the prior year.

Strategic review

We have continued to make difficult but necessary decisions to protect and strengthen our business’s resilience and sustainability, always looking ahead to the thriving future we aim to create.

Sappi’s Thrive strategy reinforces our commitment to a sustainable future, focusing on sustainability, innovation, and transparency to position Sappi as a trusted, forward-looking partner in building a biobased circular economy. Thrive embodies Sappi’s dedication to long-term growth, responsible resource management, and the wellbeing of our employees and the communities we serve. It reflects our mission to not only thrive but to lead in advancing the principles of a sustainable, circular bio-economy.

Our Thrive strategy encompasses the following four main objectives:

	Grow our business – We are committed to our core business segments, investing in innovation and growth opportunities, and fostering strong customer relationships.
	Sustain our financial health – This involves reducing debt, growing EBITDA, maximising product value, optimising global processes, and selectively divesting non-core assets.
	Drive operational excellence – We are focused on enhancing our safety first culture, reducing resource use, improving efficiency, and making smart digital investments.
	Enhance trust – By building stronger relationships with customers and communities, driving sustainable solutions, and meeting the evolving needs of our workforce, we aim to earn and maintain the trust of all our stakeholders.

Initiatives and actions undertaken in 2024 to support our strategic objectives are outlined below.

Grow our business

Growing the business is essential to Sappi’s long-term success and resilience. By expanding in our growth segments and investing in new opportunities, Sappi not only strengthens its competitive edge but also enhances its ability to adapt to changing market demands. This growth fuels innovation, supports job creation, and provides a solid foundation for further advancements in sustainable practices and product development. Ultimately, a focus on growth ensures Sappi can continue delivering value to its customers, employees and communities, while driving positive environmental and social impact in line with the Thrive strategy.

In 2024 our growth segments, pulp and packaging and speciality papers constituted 60% of Adjusted EBITDA and represented 56% of sales volumes (excluding forestry). In a challenging global economic environment marked by low consumer confidence, this was a satisfactory performance reflecting the resilience of these segments. The long-term outlook for pulp, packaging, and speciality papers products remains positive, and we are committed to maximising profitability by expanding capacity and optimising our product mix.

The conversion and expansion of Somerset Mill PM2 from coated woodfree graphic papers to solid bleached sulphate (SBS) paperboard made strong progress this year. This US$418 million investment – the largest in Sappi’s history – is fully aligned with our strategy to reduce exposure to graphic papers and grow in the higher-margin packaging sector. The project remains on schedule for commissioning in April 2025, adding 470,000 tons per annum (tpa) of capacity to our packaging papers segment.

We made good progress in expanding our packaging and speciality papers portfolio during the year with the development of a number of new products. Key advancements include the development of recyclable paper substrates with barrier functionality, such as Guard MH, a renewable alternative to non-recyclable packaging that meets the growing demand for eco-friendly disposal options. Another breakthrough is Silco Star, a glassine paper featuring a new clay-based coating, which reduces silicone usage and offers a sustainable alternative to traditional coatings.

At the end of the financial year, we successfully completed the conversion of the PM9 machine at Gratkorn Mill to produce high-quality label paper, expanding the production capabilities of the machine so that it can now produce a comprehensive range of high-quality label papers including self-adhesive and wet strength label papers in addition to traditional coated woodfree graphic papers grades. The investment introduces advanced technological innovations, such as a new embossing calendar and updated water and material cycles, critical for producing durable wet-glue label papers suited for returnable beer bottles. This strategic conversion significantly strengthens the Gratkorn Mill’s competitive position as the enhanced technical capabilities of the PM9 machine broaden the product portfolio, providing greater flexibility to optimise the product mix and effectively offset the anticipated gradual decline in graphic papers volumes.

Our commitment is to do more with less by making the most out of every tree used in our production processes. Therefore, our Sappi Biotech business remains a long-term strategic focus as we develop new circular products for adjacent markets. We expanded our Valida product line with new biomaterials for diverse sectors. Highlights include Valida fibrillated cellulose for cosmetics and homecare, which reduces energy use by 60%, and Valida T, a biodegradable rheology modifier free of microplastics, aligning with EU environmental regulations. In the agricultural sector, Valida’s microplastic-free formulation supports crop protection and fertiliser with a 30% energy reduction, making it a sustainable choice over synthetic polymers. These innovations reflect Sappi’s commitment to a thriving, sustainable future. Our lignin business remains a strategic growth opportunity and we have accelerated the development and commercialisation of higher value lignin-based solutions. In 2024, we also successfully launched Viscowell, our lignosulphonate-based product used in oil-well drilling for mud thinning, fluid loss and as a retarder for well cementing.

Sustain our financial health

Globally, graphic papers capacity exceeds demand and the industry continued to be characterised by significant overcapacity in 2024. In response, we proactively undertook a strategic rationalisation of our European business, removing approximately ~30% of our graphic papers capacity through the closures of the Stockstadt and Lanaken Mills. We were able to successfully transfer the sales from these two operations to our remaining graphic papers assets which allowed us to maximise our capacity utilisation, reduce the fixed cost position and improve the profitability of the European business. The net cash costs of the closures in the year were US$234 million, which included the proceeds from the sale of the Stockstadt Mill site. The sale of the Lanaken Mill site was also successfully completed and proceeds of US$44 million were received shortly after year end.

Net debt at financial year end increased to US$1,422 million (FY2023 US$1,085 million) primarily due to the increased capital expenditure associated with the conversion and expansion of Somerset Mill PM2 project and the cash outflow associated with the closure of the Stockstadt and Lanaken Mills in Europe. In addition, a negative currency translation effect on our Euro-denominated debt being converted at a higher rate, increased net debt by US$63 million for the year.

Capital expenditure of US$458 million was slightly below guidance due to timing differences on some projects and the deferment of some non-critical projects. The expenditure included US$160 million for the conversion and expansion of Somerset Mill PM2. Aligned with our Thrive strategy, our capital allocation remains firmly directed toward expanding in high-growth market segments, strengthening our competitive position and delivering sustained shareholder value as we enhance profitability of the group. Capital expenditure for FY2025 is estimated to be in the region of US$500 million and will include approximately US$157 million for the completion of the Somerset Mill PM2 project. The project is expected to be completed by April 2025 and therefore most of the capex will be incurred in the first half of the financial year. We remain committed to our net debt target of US$1 billion, or a leverage ratio of 1.5x net debt/Adjusted EBITDA through the cycle. Debt reduction will therefore be our capital allocation priority in the second half of FY2025 and into FY2026.

Despite the net cash utilisation for the year, liquidity at year end remained healthy with cash on hand of US$317 million and US$692 million from unutilised committed revolving credit facilities (RCFs) in South Africa and Europe.

Drive operational excellence

Sappi’s strategic focus on operational excellence in FY2024 has been instrumental in driving both efficiency and innovation across our global operations. This commitment enables us to maintain a competitive edge, streamline processes and align with our Thrive strategy to meet sustainability and circular economy goals. Our investments this year in advanced equipment, strategic upgrades and decarbonisation initiatives are core to enhancing operational flexibility, reducing costs and responding dynamically to market demands.

At Gratkorn Mill, we made considerable progress with the multi-phase modernisation of PM11, which is the largest coated woodfree paper machine in Europe. Set for completion in the upcoming year, this project introduces significant upgrades across the machine, including advanced automation, electrical improvements, new control systems, and enhanced quality inspection technologies. These enhancements will not only improve PM11’s coating profile but also ensure greater machine reliability and uptime by minimising electrical failures. The final adjustments in Phase 3 will bring PM11 to best-available technology standards, reinforcing our competitive stance in the commercial print sector. This project, pivotal to our graphic papers strategy, strengthens Sappi’s position in a challenging market and supports our commitment to delivering consistent, high-quality output in the print industry.

At Ehingen Mill, the installation of a new slitter winder added valuable production flexibility, supporting the strategic ‘carouselling’ of paper grades across our European operations. Following the closure of Stockstadt and Lanaken Mills, Ehingen Mill took on Stockstadt Mill’s uncoated woodfree grades, expanding its product offerings and enabling a seamless transition of sales and production. This upgrade was critical for supporting Sappi’s agile response to shifting product demands and for maximising the potential of our assets amid broader market changes. Additionally, the new reel packaging machine at Gratkorn Mill now enables the production of reels with variable widths and weights, further enhancing product adaptability and positioning us to meet diverse customer requirements.

Aligned with our Thrive strategy, we have also made significant strides in decarbonisation initiatives, which not only reduce Sappi’s environmental footprint but also improve operational efficiency and drive cost savings. At Kirkniemi and Gratkorn Mills, we introduced flexible fuel options in our multi-fuel boilers, allowing a transition to biomass – a renewable and cost-effective alternative to fossil fuels. This shift contributes to substantial cost savings and environmental benefits by lowering carbon emissions and reliance on traditional energy sources. Similarly, at Maastricht Mill, the installation of an e-boiler paired with our on-site combined heat and power (CHP) plant offers increased operational agility. This setup allows us to capitalise on renewable energy from the grid when it is abundant and cost-effective while ensuring power consistency through the CHP plant during times of scarcity. When renewable energy production exceeds demand, we can also sell surplus power back to the grid, creating an additional revenue stream. These decarbonisation projects are a testament to the potential for sustainable investments to generate tangible business value through variable cost savings, enhanced efficiency and new revenue opportunities, all while supporting Sappi’s climate resilience.

As supply chain challenges persist, our agility in seeking alternative suppliers and chemicals is vital for maintaining procurement flexibility, which is a cornerstone of our operational excellence strategy. Reducing both variable and fixed costs throughout the business is integral both to maintaining or improving margins and to the sustainability of our operations. We set ourselves a target of a US$58 million reduction in third-party expenditure compared to 2023 through efficiency and raw material usage improvements as well as delivering savings through various procurement initiatives. We are pleased to report that savings of US$104 million were realised. In 2025 we are targeting approximately US$60 million in variable cost savings.

Together, these initiatives in operational excellence position Sappi not only to navigate current market challenges but also to thrive long term. By investing in world-class equipment, fostering flexibility across our product lines, and embracing sustainability innovations, Sappi is well-equipped to adapt to industry shifts, maximise asset utilisation, and sustain a strong market position in both graphic papers and packaging papers sectors.

Enhance trust

At Sappi, fostering a robust ethical culture is essential for enhancing trust and driving long-term value creation for our stakeholders. Our commitment to integrity and responsibility is anchored in a strong ethical framework, embodied in our Code of Ethics, which guides our directors, employees, suppliers and customers in their daily interactions. This framework extends across all facets of our operations, including environmental stewardship, responsible sourcing, and the promotion of a diverse and inclusive workforce while actively engaging with customers and local communities. To ensure the right ethical behaviour is instilled, our ethics training initiatives utilise relevant and practical examples, moving beyond a mere tick-box approach.

We strive to strengthen trust with stakeholders through a holistic approach that prioritises transparency and active engagement. By openly communicating our operational performance and sustainability initiatives, we reinforce our commitment to transparency, thereby building trust among investors, customers and the broader community. Our people strategy further emphasises leadership development and the cultivation of a cohesive culture that reflects the spirit of OneSappi. Through these efforts, we enhance our organisational capabilities to meet current and future challenges while boosting employee engagement, ultimately reaffirming our dedication to excellence and sustainable growth.

Employee engagement is crucial for enhancing trust as it fosters open communication, collaboration and a shared commitment to the organisation’s values, creating a more transparent and supportive workplace culture. Following on from our Employee Engagement Survey in 2023 we held extensive employee consultations and developed action plans to address priority improvement areas. By year end, 84% of these items were closed. The next survey is scheduled for February 2025. We made good progress in our objective to increase gender equality and continue to actively nurture emerging talent and create inclusive growth opportunities. Our commitment to fostering a working environment that values diversity and inclusion, as well as recognising and rewarding the contributions of our employees, garnered several external accolades this year. Sappi was listed by Times magazine as one of the ‘World’s Best Companies’ ¹ and by Forbes as one of the ‘World’s Best Employers’ ². We are also particularly proud to have been ranked seventh by Forbes in their annual ‘World’s Top Companies for Women’ ³ report. These external recognitions reflect our efforts in employee engagement, acknowledging the critical role of women in our industry, attracting and retaining top talent, implementing our Thrive strategy, and taking tangible actions to enhance our sustainability performance.

¹  www.time.com/collection/worlds-best-companies-2024/

²  www.forbes.com/lists/worlds-best-employers/

³  www.forbes.com/lists/top-companies-women/

Sappi is deeply committed to making a positive social impact in our neighbouring communities, recognising that their prosperity and wellbeing are linked to our own. In South Africa, where challenges such as poverty and unemployment are prevalent, Sappi has embraced the need for businesses to play a pivotal role in addressing social issues. Our focus on shared value not only helps build trust and legitimacy within communities but also reduces operational disruptions, enabling us to establish healthy relationships and enhance our licence to operate. Our Early Childhood Development (ECD) programme has successfully trained practitioners in Mpumalanga and KwaZulu-Natal, with 90% demonstrating improved teaching methods. We successfully bridged the digital divide by donating laptops to top-achieving Grade 12 learners who are heading to university to ease the financial burden on these students as well as equip them with tools to excel in their studies. We also connected six area schools to the internet, positively impacting over 5,000 students and 170 educators. Additionally, our partnership with MyWalk provided eco-friendly shoes to 691 students, reinforcing our commitment to both education and environmental sustainability. Community development efforts through the Abashintshi programme have inspired youth leadership and engagement, and our Enterprise and Supplier Development (ESD) strategy has bolstered small businesses, sustaining over 1,500 jobs this year. The Sappi Khulisa forestry programme has successfully engaged over 4,143 small growers and approximately 942 small, medium and micro enterprises in sustainable forestry practices, resulting in the delivery of 318,116 tons of timber valued at ZAR332.6 million in 2024. We trained 471 people in 20 different courses, including on core operational skills in forestry as well as safety, legal compliance and business management. Through these initiatives, Sappi is not only enhancing its operational sustainability but also uplifting communities and contributing to long-lasting positive change.

Values and ethics are critical for driving operational performance and developing stakeholder trust. We place a high premium on adherence to sustainable business practices and ethical behaviour as encapsulated in our Supplier Code of Conduct and in 2024 we made further progress towards our supplier engagement target with 84% of suppliers in compliance, well ahead of our 2025 target of 80%. Our partnership with EcoVadis continued to gain momentum and in 2024, 59% of our global eligible spend was with suppliers that disclose and have a corporate social responsibility (CSR) performance rating with EcoVadis. Furthermore, 25% of our global eligible spend is with suppliers that commit to science-based emissions reduction targets.

On 06 November 2024, Sappi’s directors approved a dividend of 14 US cents per share, payable to shareholders on 13 January 2025. This decision, made after the 2024 fiscal year end, reflects Sappi’s commitment to returning value to shareholders, with the dividend covered three times by adjusted earnings per share. Funded from cash reserves, this dividend underscores Sappi’s financial strength and dedication to delivering consistent returns.

Sustainability

Sappi is acutely aware of the impact our operations have on both the environment and local communities. By placing sustainability at the forefront of our strategy, we not only reduce our environmental footprint but also safeguard the long-term success of our business. Our dedication to responsible resource management, minimising carbon emissions, and upholding ethical practices reinforces our standing as a progressive and socially responsible leader in the industry. As we tackle the challenges of decarbonising our value chain, we understand that collaboration is vital to our success. We actively engage with the WBCSD Forest Solutions Group (FSG) to advance net zero and nature-positive roadmaps tailored for the forestry sector, and we co-lead efforts to develop an equity roadmap for the sector. Additionally, we have played a significant role in shaping the new Greenhouse Gas Protocol: Land Sector and Removals Guidance.

In 2024, we saw significant improvements in our performance against key planet KPIs, driven by enhanced operational efficiency and fewer production curtailments due to challenging market conditions compared to the previous year. However, capacity utilisation in North America and Europe remained below full potential, and various operational disruptions prevented us from fully meeting our emission and water intensity targets. On a positive note, our renewable energy usage increased, and we successfully achieved our waste reduction targets. We remain confident that our climate strategy and capital investment programme is on track to deliver our 2025 and 2030 commitments.

We are making good progress towards our Thrive sustainability goals and are confident that a resilient and growing Sappi is well-placed to lead as it adapts to an uncertain future.

Looking forward

Looking to the future, we are committed to consistently generate lasting value for our stakeholders through our unwavering focus on execution of our Thrive strategy.

Dissolving wood pulp market dynamics are expected to remain favourable through the first quarter as VSF operating rates remain high and inventory levels through the value chain are at historical lows. The DWP supply landscape remains constrained with no new capacity anticipated in the short term. VSF pricing increased through November 2024, providing further support for hardwood DWP pricing which maintained its upwards momentum and increased a further US$10 to US$970 per ton.

The long-term favourable outlook for our sustainably produced packaging and speciality papers products remains unchanged, and demand from our customers in South Africa and North America is healthy. Sappi is well-positioned to benefit from the additional paperboard capacity from the conversion and expansion of Somerset Mill PM2 that will start up in the third quarter. However, challenges persist in the short term in Europe as market recovery is taking longer than expected and the macroeconomic landscape remains unpredictable, which is likely to continue to weigh on consumer sentiment. We therefore do not expect any meaningful volume recovery in the region in the first quarter of the financial year.

Graphic papers markets have experienced a permanent structural decline through FY2024 and are expected to resume the historical 6% – 8% decline through FY2025. Globally there is significant overcapacity. We have proactively reduced our capacity in Europe to align with our anticipated market share of demand and will remove further capacity in FY2025 as we ramp up the wet strength label production on Gratkorn Mill PM9. In North America, post the conversion of Somerset Mill PM2, we will continue to meet the needs of our graphic papers customers while fully utilising our assets.

Global pulp markets have diverged over the last few months. In stark contrast to the robust DWP market, paper pulp markets have come under significant pressure as large new pulp capacity has been added and downstream paper demand remains suppressed. Lower paper pulp pricing will benefit our paper businesses, particularly in Europe where we purchase approximately 50% of our pulp requirements from the open market. We anticipate that the plantation fair value price adjustment for the first quarter will be negative due to lower wood costs in South Africa.

Challenging global macroeconomic conditions and ongoing geopolitical tensions continue to cause disruptions in our markets. Additionally, supply chain instability and fluctuating input costs have added pressure to both production and pricing strategies, making market dynamics unpredictable. In this environment, we are sharpening our focus on operational excellence by proactively managing capacity utilisation and vigorously pursuing cost-saving opportunities.

Aligned with our Thrive strategy, our capital allocation remains firmly directed toward expanding in high-growth market segments, strengthening our competitive position and delivering sustained shareholder value as we enhance profitability of the group. Capital expenditure for FY2025 is estimated to be in the region of US$500 million and will include approximately US$157 million for the completion of the Somerset Mill PM2 project.

Deleveraging of our balance sheet remains a top priority for the business and with our healthy liquidity we are well-positioned to complete our strategic capital project at Somerset Mill and to navigate any market challenges in the coming year.

Notwithstanding the ongoing global macroeconomic challenges, we anticipate that the Adjusted EBITDA for the first quarter of FY2025 will be significantly above that of the equivalent quarter of the prior year.

Appreciation

Sappi extends its heartfelt appreciation to all stakeholders, recognising their invaluable contributions and steadfast support that shape the company’s actions and decisions. This includes our customers, with whom we collaborate to develop sustainable biobased products, as well as our dedicated employees, whose wellbeing and commitment are essential to our success. We also acknowledge the wide array of stakeholders whose insights and feedback enhance Sappi’s role as a responsible corporate citizen. We deeply value these relationships and the integral role each stakeholder plays in our ongoing development and performance. Furthermore, we wish to express our gratitude to our board of directors for their unwavering dedication, expertise and leadership, which are critical in guiding our strategic direction and ensuring our sustainable growth.

In conclusion, we value the support which our shareholders have provided as we work to enhance sustainable long-term shareholder returns. We look forward to their participation at the annual general meeting (AGM) on 05 February 2025.

Changes to the board and the executive management

Mr Mohammed (Valli) Moosa, a longstanding member of the board currently serving as Lead Independent Director, Chairman of the Social, Ethics, Transformation and Sustainability (SETS) Committee and member of the Nomination and Governance Committee will retire on 31 December 2024.

The board has approved the following changes to the directorate which will take effect from 01 January 2025. Mr Michael (Mike) Fallon is appointed as Lead Independent Director and resigns from his position as Chairman of the Human Resources and Compensation Committee. Mr Fallon remains as a member of the committee. Mr Louis von Zeuner is appointed as Chairman of the Human Resources and Compensation Committee. Mr Brian Beamish is appointed as Chairman of the SETS Committee. Additionally, Ms Eleni Istavridis is appointed to the SETS Committee and Ms Zola Malinga to the Nomination and Governance Committee.

We are pleased to announce that Mr Graeme Wild, currently Vice President (VP) Sales and Marketing at Sappi Southern Africa, has been appointed as CEO of Sappi Southern Africa as from 01 December 2024. Graeme succeeds Mr Alex Thiel, who has been CEO of Sappi Southern Africa for 14 years and will now assume new strategic project duties until his retirement at the end of December 2025. We thank Alex for his significant service to Sappi during his 34 years with the company.