First quarter results
for the period ended December 2023

First quarter financial results conference call

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“Sappi is a leading global provider of everyday materials made from woodfibre-based renewable resources. As a diversified, innovative and trusted leader focused on sustainable processes and products, we are building a more circular economy by making what we should, not just what we can.”

Our raw material offerings (such as dissolving pulp, wood pulp, biomaterials and timber) and end-use products (packaging papers, speciality papers, graphic papers, casting and release papers and forestry products) are manufactured from woodfibre sourced from sustainably managed forests and plantations, in production facilities powered, in many cases, with bio-energy from steam and existing waste streams.

Together with our partners, Sappi works to build a thriving world by acting boldly to support the planet, people and prosperity.

Highlights for the quarter

EBITDA excluding
special items

US$156 million
(Q1 FY23: US$290 million)

Net debt
of

US$1,216 million
(Q1 FY23: US$1,241 million)

EPS excluding
special items

8 US cents
(Q1 FY23: 30 US cents)

Production at Stockstadt and Lanaken Mills in Europe permanently ceased

Quarter ended
  Dec 2023 Dec 2022 Sept 2023
Key figures (US$ million)      
Sales 1,272 1,660 1,381
Operating profit (loss) excluding special items(1) (4) 86 225 65
Special items – loss (gain)(2) (4) 179 (6) 80
EBITDA excluding special items(1) (4) 156 290 168
Profit (loss) for the period (126) 190 (40)
Basic earnings per share (US cents) (23) 34 (7)
EPS excluding special items (US cents)(3) 8 30 6
Net debt(3) 1,216 1,241 1,085
Key ratios: (%)      
Operating profit (loss) excluding special items to sales(4) 6.8 13.6 4.7
Operating profit (loss) excluding special items to capital employed (ROCE)(3) (4) 9.8 24.7 7.2
EBITDA excluding special items to sales(4) 12.3 17.5 12.2
Net debt to EBITDA excluding special items(4) 2.0 0.9 1.5
Covenant leverage ratio(3) 1.9 0.9 1.4
Interest cover(3) 9.8 17.6 11.2
Net asset value per share (US cents)(3) 404 447 438
(1) Refer to note 2 to the group results for the reconciliation of EBITDA excluding special items and operating profit excluding special items to operating profit by segment and profit for the period.
(2) Refer to note 2 to the group results for details on special items.
(3) Refer to supplemental information for the definition of the term.
(4) The definition of special items has been amended from fiscal 2024 to exclude the price fair value adjustment of plantations which was previously included as part of special items. The price fair value adjustment of plantations is therefore included in the current year's EBITDA excluding special items and operating profit (loss) excluding special items. The prior year comparatives for special items continue to include the price fair value adjustment of plantations.

Sales by product* (%)

Sales by destination* (%)

Sales by source* (%)

Net operating assets** (ex corporate) (%)

* For the period ended December 2023.

** As at December 2023.