Quarter ended		Reviewed Year ended
US$ million	Note			Sep 2024	Sep 2023	Sep 2024	Sep 2023
Sales				1,464	1,381	5,458	5,809
Cost of sales				1,251	1,132	4,682	4,902
Gross profit				213	249	776	907
Selling, general and administrative expenses				111	104	403	365
Other operating (income) expenses				(21)	157	191	159
Share of (profit) loss from equity-accounted investees				–	3	–	3
Operating profit (loss)	3			123	(15)	182	380
Net finance costs				17	17	67	49
Finance costs				25	28	104	107
Finance income				(6)	(9)	(28)	(48)
Net foreign exchange gain				(2)	(2)	(9)	(10)
Profit (Loss) before taxation				106	(32)	115	331
Taxation				27	8	82	72
Profit (Loss) for the period				79	(40)	33	259
Basic earnings per share (US cents)	4			13	(7)	6	46
Weighted average number of shares in issue (millions)				599.4	558.8	582.4	563.6
Diluted earnings per share (US cents)	4			13	(7)	6	44
Weighted average number of shares on fully diluted basis (millions)				605.2	599.5	588.2	604.6

			Quarter ended		Reviewed Year ended
US$ million			Sep 2024	Sep 2023	Sep 2024	Sep 2023
Profit (Loss) for the period			79	(40)	33	259
Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss			(1)	(3)	(1)	(5)
Actuarial gains (losses) on post-employment benefit funds			1	(1)	1	(4)
Tax effect			(2)	(2)	(2)	(1)
Items that may be reclassified subsequently to profit or loss			69	(2)	120	(69)
Exchange differences on translation of foreign operations			56	2	103	(95)
Movements in hedging reserves			14	(3)	19	30
Tax effect			(1)	(1)	(2)	(4)
Total comprehensive income for the period			147	(45)	152	185

				Reviewed
US$ million	Note			Sep 2024	Sep 2023
ASSETS
Non-current assets				4,208	3,742
Property, plant and equipment				3,241	2,886
Right-of-use assets				79	69
Plantations				562	488
Deferred tax assets				76	75
Goodwill and intangible assets				95	88
Equity-accounted investees				11	9
Other non-current assets	8			144	127
Current assets				1,998	2,054
Inventories	8			836	777
Trade and other receivables	8			771	658
Derivative financial assets				18	14
Taxation receivable				6	4
Cash and cash equivalents				317	601
Assets held for sale	9			50	–
Total assets				6,206	5,796
EQUITY AND LIABILITIES
Shareholders’ equity
Ordinary shareholders’ interest				2,578	2,445
Non-current liabilities				2,299	2,035
Interest-bearing borrowings				1,537	1,329
Lease liabilities				74	61
Deferred tax liabilities				433	394
Defined benefit and other liabilities				255	251
Current liabilities				1,329	1,316
Interest-bearing borrowings				107	266
Lease liabilities				21	30
Trade and other payables	8			1,110	908
Provisions	8			8	80
Derivative financial liabilities				17	3
Taxation payable				66	29
Total equity and liabilities				6,206	5,796
Number of shares in issue at balance sheet date (millions)				599.4	558.8

	Quarter ended		Reviewed Year ended
US$ million	Sep 2024	Sep 2023	Sep 2024	Sep 2023
Profit (Loss) for the period	79	(40)	33	259
Adjustment for:
Depreciation, fellings and amortisation	94	123	351	368
Taxation	27	8	82	72
Net finance costs	17	17	67	49
Defined post-employment benefits paid	(5)	(9)	(24)	(32)
Plantation fair value adjustments	2	(105)	(108)	(197)
Asset impairments	(26)	233	(24)	233
Reversal of loss of held-for-sale assets	–	(181)	–	(181)
(Profit) Loss on disposal of held-for-sale assets	–	–	(10)	1
Net restructuring charge	(8)	77	134	77
(Profit) Loss on disposal and written-off assets	2	(3)	3	(3)
Other non-cash items(1)	(3)	6	46	13
Cash generated from operations	179	126	550	659
Movement in working capital	73	164	29	178
Closure and restructuring costs paid	(43)	–	(280)	–
Finance costs paid	(16)	(23)	(69)	(121)
Finance income received	6	8	28	30
Taxation (paid) refund	(20)	(28)	(50)	(56)
Dividend paid	–	–	(84)	(85)
Cash (utilised by) generated from operating activities	179	247	124	605
Cash utilised in investing activities	(214)	(171)	(430)	(395)
Capital expenditure	(210)	(179)	(458)	(382)
Proceeds on disposal of assets	–	5	5	6
Proceeds on held-for-sale assets	–	–	46	10
Movements to non-current and intangible asset	(4)	3	(23)	(29)
Net cash (utilised) generated	(35)	76	(306)	210
Cash effects of financing activities	(29)	31	4	(416)
Proceeds from interest-bearing borrowings	2	41	297	41
Repayment of interest-bearing borrowings	(25)	(4)	(269)	(412)
Share repurchases	–	–	–	(22)
Capital lease repayments	(6)	(6)	(24)	(23)
Net movement in cash and cash equivalents	(64)	107	(302)	(206)
Cash and cash equivalents at beginning of period	365	504	601	780
Translation effects	16	(10)	18	27
Cash and cash equivalents at end of period	317	601	317	601

(1)

Other non-cash items for the year ended September 2024 include accruals for closure costs at Lanaken of US$30 million (€28 million), non-cash movements in the defined benefit liabilities and plan assets of US$13 million (2023: US$20 million) and share-based charges of US$6 million (2023: US$6 million).

	Reviewed Year ended
US$ million	Sep 2024	Sep 2023
Balance – beginning of period	2,445	2,358
Profit (Loss) for the period	33	259
Other comprehensive income for the period	119	(74)
Issue of shares	59	3
Dividend – 15 US cents	(84)	(85)
Share repurchases	–	(22)
Share-based payment reserve	6	6
Balance – end of period	2,578	2,445
Comprising
Ordinary share capital and premium	815	679
Non-distributable reserves	124	111
Foreign currency translation reserves	(217)	(239)
Hedging reserves	(41)	(55)
Retained earnings	1,897	1,949
Total equity	2,578	2,445

(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 and the plantation fair value price adjustment and special finance and 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 the 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		Year ended
	Sep 2024	Sep 2023	Sep 2024	Sep 2023
Key figures (ZAR million)
Sales	26,317	25,740	101,168	105,602
Operating profit excluding special items(1)	2,157	1,212	7,544	7,853
Special items – (gains) losses(1)	(54)	1,491	4,171	945
EBITDA excluding special items(1)	3,505	3,131	12,697	13,289
Profit for the period	1,420	(746)	612	4,708
Basic earnings per share (SA cents)	237	(134)	105	835
Net debt(1)	24,339	20,539	24,339	20,539
Key ratios (%)
Operating profit excluding special items to sales	8.2	4.7	7.5	7.4
Operating profit excluding special items to capital employed (ROCE)(1)	12.6	7.1	11.2	12.0
EBITDA excluding special items to sales	13.3	12.2	12.6	12.6

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

The above financial results have been translated into Rand from US Dollar 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

	Sep 2024	Jun 2024	Mar 2024	Dec 2023	Sep 2023
Exchange rates:
Period-end rate: US$1 = ZAR	17.1162	18.1925	18.8688	18.2969	18.9299
Average rate for the quarter: US$1 = ZAR	17.9763	18.5706	18.8776	18.7269	18.6387
Average rate for the year to date: US$1 = ZAR	18.5357	18.7254	18.8027	18.7269	18.1791
Period-end rate: €1 = US$	1.1164	1.0715	1.0795	1.1037	1.0572
Average rate for the quarter: €1 = US$	1.0986	1.0765	1.0860	1.0763	1.0881
Average rate for the year to date: €1 = US$	1.0843	1.0796	1.0811	1.0763	1.0679

Sappi share price – September 2022 to September 2024