SECOND QUARTER
RESULTS

Sappi is a global diversified woodfibre company focused on providing dissolving pulp, packaging and speciality papers, graphic papers as well as biomaterials and biochemicals to our direct and indirect customer base across more than 150 countries.

SECOND QUARTER
Financial results conference call
WEBCAST

Our dissolving pulp products are used worldwide mainly by converters to create viscose fibre for fashionable clothing and textiles, as well as other consumer products; quality packaging and speciality papers are used in the manufacture of such products as soup sachets, luxury carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, tissue wadding for household tissue products and casting release papers used by suppliers to the fashion, textiles, automobile and household industries; our market-leading range of graphic papers are used by printers in the production of books, brochures, magazines, catalogues, direct mail and many other print applications; biomaterials include nanocellulose, fibre composites and lignosulphonate; biochemicals include second generation sugars.

The wood and pulp needed for our products are either produced within Sappi or bought from accredited suppliers. Sappi sells almost as much as it buys.

Sales by source* (%)

Sales by destination* (%)

Sales by product* (%)

Net operating assets** (%)

* For the period ended March 2020.
** As at March 2020.


HIGHLIGHTS
FOR THE QUARTER
EBITDA excluding special items US$131 million (Q2 2019 US$187 million)
EPS excluding special items 4 US cents (Q2 2019 13 US cents)
Profit for the period US$2 million (Q2 2019 US$72 million)
Net debt US$1,879 million (Q2 2019 US$1,680 million)

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COMMENTARY
ON THE QUARTER

A strong packaging and specialities performance along with solid results in the graphics paper segment, could not offset the significant impact of the historic low dissolving pulp (DP) prices, and reduced DP sales volumes. Consequently, the group generated EBITDA excluding special items of US$131 million compared to the US$187 million in the equivalent quarter last year. Profit for the period declined to US$2 million from US$72 million primarily as a result of the lower EBITDA, as well as restructuring provisions and asset impairments related to the proposed closure of Stockstadt PM2 that was announced during the quarter.

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