Reviewed
		Quarter ended
US$ million	Notes	Dec 2025	Dec 2024
Revenue		1,287	1,363
Cost of sales		1,196	1,130
Gross profit		91	233
Selling, general and administrative expenses		96	101
Other operating (income) expenses		13	11
Share of (profit) loss from equity-accounted investees		–	–
Operating profit (loss)	3	(18)	121
Net finance costs		26	19
Finance costs		32	26
Finance income		(4)	(5)
Net foreign exchange gain		(2)	(2)
Profit (Loss) before taxation		(44)	102
Taxation		(7)	32
Profit (Loss) for the period		(37)	70
Basic earnings (loss) per share (US cents)	4	(6)	12
Weighted average number of shares in issue (millions)		605.7	601.8
Diluted earnings (loss) per share (US cents)	4	(6)	12
Weighted average number of shares on fully diluted basis (millions)		606.1	607.8

		Reviewed
	Quarter ended
US$ million	Dec 2025	Dec 2024
Profit (Loss) for the period	(37)	70
Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss	–	–
Actuarial gains (losses) on post-employment benefit funds	–	–
Tax effect	–	–
Items that may be reclassified subsequently to profit or loss	62	(104)
Exchange differences on translation of foreign operations	59	(80)
Movements in hedging reserves	4	(29)
Tax effect	(1)	5
Total comprehensive income for the period	25	(34)

			Reviewed
US$ million	Note	Dec 2025	Sept 2025
ASSETS
Non-current assets		4,379	4,333
Property, plant and equipment		3,431	3,414
Right-of-use assets		113	103
Plantations		577	560
Deferred tax assets		25	24
Goodwill and intangible assets		86	87
Equity-accounted investees		12	12
Other non-current assets		135	133
Current assets		1,611	1,739
Inventories		860	823
Trade and other receivables		594	682
Derivative financial assets	5	12	6
Taxation receivable		2	9
Cash and cash equivalents		143	219
Total assets		5,990	6,072
EQUITY AND LIABILITIES
Shareholders' equity
Ordinary shareholders' interest		2,335	2,308
Non-current liabilities		2,292	2,310
Interest-bearing borrowings		1,526	1,546
Lease liabilities		104	96
Deferred tax liabilities		436	437
Defined benefit and other liabilities		226	231
Current liabilities		1,363	1,454
Interest-bearing borrowings		433	469
Lease liabilities		30	26
Overdrafts		1	2
Trade and other payables		839	898
Provisions		33	40
Derivative financial liabilities	5	8	4
Taxation payable		19	15
Total equity and liabilities		5,990	6,072
Number of shares in issue at balance sheet date (millions)		607.0	604.6

		Reviewed
	Quarter ended
US$ million	Dec 2025	Dec 2024
Profit (Loss) for the period	(37)	70
Adjustment for:
Depreciation, fellings and amortisation	101	89
Taxation	(7)	32
Net finance costs	26	19
Defined post-employment benefits paid	(11)	(4)
Plantation fair value adjustment	(13)	(20)
Asset impairments	–	1
Write down of held-for-sale assets	–	4
Net restructuring charge	1	–
(Profit) Loss on disposal and written-off assets	1	(2)
Other non-cash and other items	2	17
Cash generated from operations	63	206
(Increase) Decrease in working capital	10	(130)
Closure and restructuring costs paid	(8)	(2)
Finance costs paid	(14)	(34)
Finance income received	3	5
Taxation (paid) refund	(1)	(49)
Cash (utilised by) generated from operating activities	53	(4)
Cash utilised in investing activities	(56)	(58)
Capital expenditure	(56)	(101)
Proceeds on disposal of assets	–	4
Proceeds on held-for-sale assets	–	43
Movements to non-current and intangible asset	–	(4)
Net cash (utilised) generated	(3)	(62)
Cash effects of financing activities	(74)	43
Proceeds from interest-bearing borrowings	–	84
Repayment of interest-bearing borrowings	(67)	(35)
Capital lease repayments	(7)	(6)
Net movement in cash and cash equivalents	(77)	(19)
Cash and cash equivalents at beginning of period	219	317
Translation effects	1	(15)
Cash and cash equivalents at end of period	143	283

		Reviewed
	Quarter ended
US$ million	Dec 2025	Dec 2024
Balance – beginning of period	2,308	2,578
Profit (Loss) for the period	(37)	70
Other comprehensive income for the period	62	(104)
Dividend – Nil US cents (2025: 14 US cents)	–	(85)
Share-based payment reserve	2	2
Balance – end of period	2,335	2,461
Comprising
Ordinary share capital and premium	841	742
Non-distributable reserves	142	119
Foreign currency translation reserves	(226)	(221)
Hedging reserves	(36)	(61)
Retained earnings	1,614	1,882
Total equity	2,335	2,461

(this information has not been audited or reviewed)

General definitions

Adjusted EBITDA – EBITDA excluding special items and the plantation fair value price adjustment

Average – averages are calculated as the sum of the opening and closing balances for the relevant period divided by two

Capital employed – shareholders' equity plus net debt

Covenant leverage ratio – net debt divided by last 12 months’ EBITDA excluding special items as defined by our bank covenants

EBITDA excluding special items – earnings before interest (net finance costs), taxation, depreciation, amortisation and special items

Adjusted EPS – earnings per share excluding special items, the plantation fair value price adjustment, special finance costs and special tax items

Fellings – the amount charged against the income statement representing the standing value of the plantations harvested

Headline earnings – as defined in circular 1/2023, as issued by the South African Institute of Chartered Accountants, separates from earnings all separately identifiable remeasurements. It is not necessarily a measure of sustainable earnings. It is a Listings Requirement of the JSE Limited to disclose headline earnings per share

Interest cover – last 12 months’ EBITDA excluding special items to net interest adjusted for refinancing costs

NBSK – Northern Bleached Softwood Kraft pulp. One of the main varieties of market pulp, produced from coniferous trees (ie spruce, pine) in Scandinavia, Canada and northern USA. The price of NBSK is a benchmark widely used in the pulp and paper industry for comparative purposes

Net assets – total assets less total liabilities

Net asset value per share – net assets divided by the number of shares in issue at balance sheet date

Net debt – current and non-current interest-bearing borrowings and lease liabilities, bank overdrafts less cash and cash equivalents

Net debt to EBITDA excluding special items – net debt divided by the last 12 months’ EBITDA excluding special items

Net operating assets – total assets (excluding deferred tax assets and cash) less current liabilities (excluding interest-bearing borrowings, lease liabilities and overdraft)

Operating profit – profit from business operations before deduction of net finance costs and taxes

Non-GAAP measures – the group believes that it is useful to report certain non-GAAP measures for the following reasons:

• these measures are used by the group for internal performance analysis
• the presentation by the group's reported business segments of these measures facilitates comparability with other companies in our industry, although the group’s measures may not be comparable with similarly titled profit measurements reported by other companies
• it is useful in connection with discussion with the investment analyst community and debt rating agencies

These non-GAAP measures should not be considered in isolation or construed as a substitute for GAAP measures in accordance with IFRS

ROCE – annualised return on average capital employed. Operating profit excluding special items divided by average capital employed

RONOA – return on average net operating assets. Operating profit excluding special items divided by average net operating assets

Special items – special items cover those items which management believe are material by nature or amount to the operating results and require separate disclosure. Such items would generally include profit or loss on disposal of property, investments and businesses, asset impairments, restructuring charges, non-recurring integration costs related to acquisitions, financial impacts of natural disasters and settlement gains or losses on defined benefit obligations

The above financial measures are presented to assist our shareholders and the investment community in interpreting our financial results. These financial measures are regularly used and compared between companies in our industry

Summary Rand convenience translation

	Quarter ended
	Dec 2025	Dec 2024
Key figures (ZAR million)
Revenue	22,038	24,373
Operating profit excluding special items(1)	(17)	2,360
Special items – (gains) losses(1)	291	197
EBITDA excluding special items(1)	1,387	3,612
Profit for the period	(634)	1,252
Basic earnings per share (SA cents)	(105)	208
Net debt(1)	32,366	26,428
Key ratios (%)
Operating profit excluding special items to revenue	(0.1)	9.7
Operating profit excluding special items to capital employed (ROCE)(1)	(0.1)	13.4
EBITDA excluding special items to revenue	6.3	14.8

(1)	Refer to supplemental information for the definition of the term.

The above financial results have been translated into Rands from US Dollars as follows:

• assets and liabilities at rates of exchange ruling at period-end; and
• income, expenditure and cash flow items at average exchange rates.

Exchange rates

	Dec 2025	Sept 2025	Jun 2025	Mar 2025	Dec 2024
Exchange rates:
Period-end rate: US$1 = ZAR	16.5894	17.2722	17.8328	18.4211	18.7964
Average rate for the quarter: US$1 = ZAR	17.1234	17.6392	18.2970	18.5004	17.8818
Average rate for the year to date: US$1 = ZAR	17.1234	18.0678	18.2231	18.1837	17.8818
Period-end rate: EUR1 = US$	1.1748	1.1727	1.1720	1.0828	1.0408
Average rate for the quarter: EUR1 = US$	1.1641	1.1689	1.1336	1.0518	1.0678
Average rate for the year to date: EUR1 = US$	1.1641	1.1057	1.0844	1.0600	1.0678

Sappi share price – December 2023 to December 2025