Voluntary update with respect to progress made on actions outlined at 3Q2025 results

Sappi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1936/008963/06)
JSE share code: SAP
ISIN: ZAE000006284
("Sappi" or the "Company")

Voluntary update with respect to progress made on actions outlined at 3Q2025 results

As stated during our 3Q2025 results announcement, Sappi's leverage ratio is currently elevated due to
a confluence of factors:

    1.   a peak in debt after completing the Somerset PM2 conversion and expansion project;
    2.   a weak USD impacting the translation of our Euro denominated debt to US$;
    3.   pricing headwinds across a number of product segments; and
    4.   a tough macroeconomic environment.

While these conditions have created a more complex operating environment, we remain confident in
the underlying strength of our business and the resilience of our operations.

Sappi's immediate focus remains on internal factors within the company's control, primarily the
reduction of debt and strengthening the balance sheet. To this end, we are intensifying efforts to
enhance our financial flexibility.

To support our commitment to reducing debt, we have adjusted our capital expenditure downward for
the next two years, with no expansionary capex anticipated during this period. In addition, the board of
directors of Sappi made the decision to suspend the dividend for fiscal 2025 to preserve cash.

The following proactive actions have been taken to maintain financial flexibility:

-   Preserve Cash: Current Group liquidity is in excess of $800 million, comprising cash resources
    and committed Revolving Credit Facilities.
-   Banking support and increased covenants: Our banking group has unanimously supported
    increasing our leverage covenant levels for the next 12 months to provide additional headroom
    during this temporary period of elevated leverage.
-   Facility extension: Discussions will commence shortly with our banking group to further extend
    our Revolving Credit Facilities, which we expect to be finalised very early in 2026.
-   Terming out short-term debt: We are making good progress to term-out a large portion of our
    short-term debt with a new 5-year term facility.

Sappi is a well-capitalised business with a proven ability to adapt and respond to market cycles. We
remain focused on navigating the current operating environment with discipline and transparency.

Johannesburg
10 October 2025

Sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 10-10-2025 12:55:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.