5 Feb 2020

Chief Executive Officer

Steve Binnie

Sappi Limited

Q1 FY20 financial results delivering on

strategy

2020

Vision2020

intentionalevolution

next phase

growth

1

Forward-looking statements and Regulation G

2

Forward-looking statementsCertain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not limited to statements that are predictions ofor indicate future earnings, savings, synergies, events, trends, plans or objectives. The words “believe”, “anticipate”, “expect”, “intend”, “estimate”, “plan”, “assume”, “positioned”, “will”, “may”, “should”,“risk” and other similar expressions, which are predictions of or indicate future events and future trends and which do not relate to historical matters, identify forward-looking statements. In addition, thisdocument includes forward-looking statements relating to our potential exposure to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity price risk. Youshould not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actualresults, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results,performance or achievements). Certain factors that may cause such differences include but are not limited to:

The highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including rawmaterial, energy and employee costs, and pricing)

The impact on our business of adverse changes in global economic conditions Unanticipated production disruptions (including as a result of planned or unexpected power outages) Changes in environmental, tax and other laws and regulations Adverse changes in the markets for our products The emergence of new technologies and changes in consumer trends including increased preferences for digital media Consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed Adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems The impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in

connection with dispositions or with integrating acquisitions or implementing restructurings or other strategic initiatives, and achieving expected savings and synergies, and Currency fluctuations.

We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.

Regulation G disclosureCertain non-GAAP financial information is contained in this presentation that management believe may be useful in comparing the company’s operating results from period to period. Reconciliation's ofcertain of the non-GAAP measures to the corresponding GAAP measures can be found in the quarterly results booklet for the relevant period. These booklets are available on our website:https://www.sappi.com/quarterly-reports.

Highlights – Q1 FY20

3

EBITDA* $139m

Profit for the periodUS$24 million

EPS* 6 US cents

o Historically low DWP prices significantly impacting profitability

o Packaging and speciality segment margins higher as pricing and mix improve – SA containerboard experiencing depressed demand

o Market share gains in coated paper grades

o Matane integration on track

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page XX in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

Excluding special items*

60

80

100

120

140

160

180

200

197 (6) (82) 44 (7) (6) (1) - 139

Q1 FY19 EBITDA Sales volume Price & mix Variable & deliverycosts

Fixed costs Inventory movement Other Exchange rate Q1 FY20 EBITDA

EBITDA* reconciliation

4

Q1 FY20 to Q1 FY19

US$

milli

on

Notes:

1. All variances were calculated excluding Sappi Forestry.

2. “Currency conversion” reflects translation and transactional effect on consolidation.

3. EBITDA* = EBITDA excluding special items

2020 2019Exchange rates:Average rate for the Quarter: US$1 = ZAR 14.7241 14.3127Average rate for the Quarter: €1 = US$ 1.1066 1.1409

Dec

Sales revenue

Product contribution split – LTM

5

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items. Data above excludes treasury operations and insurance captive.

39%

21%

40%

Dissolving WoodPulpPackaging &Speciality PapersGraphic Papers

54%

17%

29%

EBITDA excluding special items Operating profit excluding special items

6

Segment volume & EBITDA* margin

0%2%4%6%8%10%12%

600700800900

1,0001,1001,200

Graphics volume Graphics margin

0%

5%

10%

15%

20%

100

150

200

250

300

350

Pack/Spec volume Pack/Spec margin

0%10%20%30%40%50%

100150200250300350400

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

Q1

19

Q2

19

Q3

19

Q4

19

Q1

20

DWP volume EBITDA marginEBITDA* = EBITDA excluding special items

Maturity profile*Fiscal years

7

270

6523 43 46

437

113

26

503

78

221

364

82 107

0

100

200

300

400

500

600

2020 2021 2022 2023 2024 2025 2026 2027 2032

US$

milli

on

Cash Short-term SPH term debt Securitisation SSA

EUR450m bondEUR350m bond

US$221m bond

*Graph excludes US$92.4 million in IFRS16 leases – Average maturity of 4 years

Capex

8

0

100

200

300

400

500

600

2013 2014 2015 2016 2017 2018 2019 2020E

US$

milli

on

Maintenance Efficiency and expansion

9

Market and Segmental overview

Sappi Europe

10

Sales Tons -2%year-on-year

Sales -4%year-on-year

EBITDA* +5%year-on-year

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

o Market share gains in CWF offsetting weak market demand

o 28kt CM downtime required, US$6.5m impact – ramp up of Lanaken on CWF will assist going forward

o Packaging and specialities volumes growing in all major product categories

o Variable costs declining as pulp, chemicals and energy prices move downward.

Sappi North America

11

Sales Tons +17%*year-on-year

Sales +5%year-on-year

EBITDA** -14%year-on-year

* Matane volumes included for 2 months – volumes up 7% excl. Matane** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

o Good growth in packaging volumes, with improved product mix aids pricing and machine efficiency

o Profits impacted by weak DWP pricing

o Graphics demand down 16%, 20kt downtime taken US$6m EBITDA impact. Realised prices were flat y-o-y.

o Paper pulp, energy and chemicals costs lower, supporting margins.

Sappi South Africa

12

Sales Tons -15%year-on-year

Sales -25%year-on-year

EBITDA* -57%year-on-year

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

o Historically low DWP prices have significant impact on profitability - US$272/t lower y-o-y.

o SA containerboard sales impacted by elevated converter inventory and drought impact. 18kt downtime - US$5m impact

o Weak domestic economy affected newsprint, tissue and office paper sales

o Higher energy and fibre costs further impact margin

Global graphic paper market trends

13

Supply and demand Demand declines continue to exceed trend Capacity reductions positively impacting operating rates over next 12 months

Selling prices and input costs Small declines in paper prices Paper pulp, chemicals and energy prices lower, supporting margins

Strategy Focus on costs, both fixed and variable, to maintain margins Manage operating rates through downtime, market share and flexibility of machines Reduce or convert capacity as markets develop/change Increase pulp integration over time

Global packaging and speciality paper market trends

14

Supply and demand Brand owners pushing for paper-based packaging solutions, demand remains firm Need for innovation in paper packaging – barrier technology key

Selling prices and input costs Stable selling prices Paper pulp, chemicals and energy prices lower, supporting margins

Strategy Ramp-up volumes from conversions, improving efficiencies and grow into new markets Innovation and sustainability key differentiators Increased pulp integration – Matane acquisition

o Looking forward we see the following opportunities in this segment

o On the back of the investments at Maastricht and Somerset we plan to further ramp-up paperboard

in the US and EU

o Complete small containerboard expansions in South Africa and investigate larger expansion

o Identify target / niche sectors, while maintaining dominant position in selected areas

o Review potential acquisitions aligned with mega-trends and strong ROIs and pay-back periods

o Invest in further R&D in order to develop capacity organically (e.g. conversions)

o Accelerate barrier coating expansion (5 000 to 25 000 tons per annum), while investigating options in

“plastics to paper” trend

15 ROIs = Return on investments

Focus on packaging & specialities

Global DWP market trends

16

Supply and demand Demand trend continues to be strong, growing by ~6% per annum Coronavirus impacting demand in China currently VSF remains oversupplied in a weak pricing environment Some swing producers switching to paper pulp as outlook started to improve

Selling prices and input costs Both DWP and VSF prices historically low Wood chip prices likely to decline in 2020 due to decline in paper pulp prices during 2019

Strategy Grow with the market, 110kt expansion at Saiccor 55% complete Evaluate longer term opportunities for more substantial increase in volumes Commitment to sustainability key – wood certification gives Sappi a competitive advantage

Maintaina healthybalancesheet

Rationalisedeclining

businesses

Accelerate growth in

higher margin growth

segments

Achievecost

advantages

Improveoperational

and machineefficiencies

Maximiseprocurement

benefits Optimisebusiness

processes

Continuouslybalance

paper supplyand demandin all regions

Wherepossible

convert papermachines tohigher marginbusinesses

Optimiseworkingcapital

Strongcash

generationSmart

financing

Expandpaper

packaginggrades

Enhancespecialised celluloseportfolio

Extractvalue from our

biorefinerystream

Our group strategy

17

At Sappi we do business with integrity and courage; making smart decisions which we execute with speed.Our values are underpinned by an unrelenting focus on and commitment to safety.

Achievecost

advantages

Improveoperational

and machine efficiencies

Maximiseprocurement

benefitsOptimisebusiness

processes

Our group strategy

18

We work to lower fixed and variable costs, increase cost efficiencies and invest for cost advantages. Group efficiency and procurement initiatives US$64m

target in 2020 Ongoing continuous improvement across all mills. Investigate pulp integration opportunities in US and

EU – Matane acquisition, small debottlenecking project in EU in 2020

Saiccor expansion will lead to lower variable costs

Rationalisedeclining

businesses

Continuouslybalance

paper supplyand demand in all regions

Wherepossible

convert paper machines tohigher margin

businesses

Our group strategy

19

Recognising the decreasing demand for graphic paper, we manage our capacity to strengthen our leadership position in these markets, realising their strategic importance to the group and maximising their significant cash flow generation. Downtime taken at mills to lower inventories Progressive transition of Lanaken Mill out of LWC Reduced coated paper exposure via conversion Evaluating graphic paper capacity

Maintaina healthybalancesheet

Optimiseworkingcapital

Strongcash

generationSmart

financing

Our group strategy

20

Targeted max sustained leverage - 2x Net debt:EBITDA

No new major capex commitments

Capex in 2021: US$250 - $350m depending on DWP

market development in 2020

Leverage covenant adjusted for next two years

Tight working capital management

8-year term loan raised to fund Matane acquisition

Accelerategrowth in

higher margingrowth

segments

Extractvalue from our

biorefinerystream

Enhancespecialisedcelluloseportfolio

Expandpaper

packaginggrades

Our group strategy

21

We will make investments in existing and adjacent areas with strong potential growth. Debottlenecking of Saiccor, Ngodwana and Cloquet

DWP complete Expansion of Saiccor by 110kt/annum 55% complete Additional packaging at Ngodwana and Tugela Mills Securing additional HW and SW timber supply Biomaterials, bio-chemicals – lignins, sugars Ramp-up of board grades at Maastricht and Somerset Extend barrier coating opportunity

DWP prices remain under pressure – low VSF prices make recovery unlikely in short term –

market fundamentals still support strategy

Machine efficiency, product mix and price realization improving as Somerset PM1 and Maastricht

conversions ramp up.

Strong innovative position, particularly in barrier technology, helping to drive growth in packaging

and speciality segment as consumers and brand owners desire more sustainable solutions.

Graphic paper markets remain difficult – market share gains and industry capacity closures to

aid operating rates

Given current DWP pricing and uncertain impact of coronavirus, EBITDA in Q2 to follow first

quarter trend.

22

Outlook

Thank you

23

24

Supplementary information

Excluding special items*

25

EBITDA and operating profit

* Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

201 20

8

155

221

172

211

155

224

197

187

118

185

139

136 14

5

93

152

105

142

85

148

128

117

48

109

62

0

50

100

150

200

250

US$

milli

on

EBITDA Operating profit ex special items

26

Net debt/EBITDA development

* EBITDA is excluding special items.** The covenant Net debt/LTM EBITDA calculation has adjustments and therefore differs from that shown above.

2,38

0

2,24

8

2,28

6

1,94

6 2,04

0

1,91

6

1,91

7

1,77

1

1,73

4

1,65

2

1583

1408

1338

1329

1318

1322 1349

1632

1603

1568

1557

1680 17

28

1501

1916

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

US$

milli

on

Net debt Net debt/LTM EBITDA**

3.0

4.6

Global packaging and speciality production sitesSappi Somerset (USA)Sappi Alfeld (Germany) Sappi Tugela (South Africa)Sappi Stockstadt (Germany) Sappi Condino (Italy)

Label Papers, Paperboard, Flexible Packaging

Flexible Packaging, Label, Paperboard, Containerboard , Silicone Base Papers,

Functional Papers

ContainerboardLabel Papers, Flexible Packaging, Containerboard

Flexible Packaging, Silicone Base Papers, Dye Sublimation Paper

Sappi Cloquet (USA)Sappi Maastricht (Netherlands) Sappi Ngodwana (South Africa)Sappi Lanaken (Belgium) Rockwell Dundee (Scotland)

Label Papers ContainerboardPaperboard Functional Papers Functional Papers andFlexible Packaging

Sappi Ehingen (Germany)

Containerboard Flexible Packaging, Label Papers, Inkjet Papers, Dye Sublimation Papers

Sappi Carmignano (Italy)

27

Accelerategrowth in

higher margingrowth

segments

Extractvalue from our

biorefinerystream

Enhancespecialisedcelluloseportfolio

Expandpaper

packaginggrades

Packaging and Speciality papers expansion plans

28

Europe Maastricht: complete, ramp-up by 2021

-160k CWF, +150k specialities (FBB) Ehingen: complete

-75k CWF, +60k specialities (WTL) Alfeld: Post 2020

+10k specialities (Various) Lanaken: enable CWF on PM8, as market develops

North America Somerset: construction done, 3 year ramp up

-150k CWF, +350k specialities (SBS)

29

Product Groups and ProductsEU Packaging

and Specialities

Sappi North America packaging offering

30

C1S PaperPaperboard (SBS)

Label Paper Bag PaperFolding Carton

LithoLamination

Food service Board

Proto C1S, Spectro C1S

Proto Litho LusterFSBLusterPlate

Bristols

LusterCote LusterPrintSpectro (C1S & C2S)

Packaging & specialities volume growth 2015 to 2020

672 733

786

947

1,110

-

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018 2019 2020

Tons

'000

Flexpack Label Paperboard Self Adhesives Digital Imaging Functional papers Casting Containerboard Tissue

31

F

32

EU consumer and brand owner sustainability focusDesired outcome

Prevent or reduce the impact of packaging waste on the environment by avoiding and recycling packaging waste; preference for Monomaterials

Consequences Product design requires a “designed for recycling” approach

Recycling systems to be established and/or heavily expanded

Rewards easy to recycle packaging

Replacement for paper laminates and aluminum

Huge potential for Barrier papers and board

Low Carbon footprint is a competitive advantage

4EverGreen initiative just started with more than 60 participants

NA paperboard segments

33

PremiumSpectro (commercial print,

premium folding carton)

PerformanceProto and Proto Litho –folding carton and litho lamination applications

Food serviceLusterFSB and LusterCup – plates, trays & cup stock

Sources: RISI, Poyry, & Chartic; Premium volume includes a range of premium folding carton from Sappi estimations.

Performance (88 Brightness)

1.89M tons (47%)

Premium (92 brightness)400K tons (10%)

Food service & cup stock

(88 brightness)1.75M tons (43%)

Price

Quality

SA total containerboard market – local market share

34

966

992

967

1,00

0 1,01

2

44%

36% 37% 37% 37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

940

950

960

970

980

990

1,000

1,010

1,020

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

Sappi

MondiMpact

Corruseal

New Era

NeopakOther+Import

Market Split Includes Cape Kraft and Enstra

The above market size includes virgin and recycled containerboard

Market size – paper board (SBB) EuropeSappi is No. 3 in SBB market in Europe with 12% market share

35

700 71

2 722 73

5 748

6%

8% 8%

8%

10%

0%

2%

4%

6%

8%

10%

12%

670

680

690

700

710

720

730

740

750

760

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

Sappi

Iggesund

Stora

Fedrigoni

BurgoOthers

Market share

Source: Smithers Pira / Risi / Own estimation

Market size – flexible packaging EuropeSappi is the market leader in flexible packaging in Europe

36

1,45

5 1,48

3 1,51

2 1,53

4 1,55

7

8%9% 9%

12%13%

0%

2%

4%

6%

8%

10%

12%

14%

1,400

1,420

1,440

1,460

1,480

1,500

1,520

1,540

1,560

1,580

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

Sappi

Billerud

Mondi

Ahlstrom

Others

Market share

Source: Smithers Pira / Risi / Own estimation

Capacity Limit reached

Market size – labels EuropeSappi is focusing on niches within labels (e.g. metallisation)

37

703 70

7 711 71

5 719 2%

2%

3%

5%

6%

0%

1%

2%

3%

4%

5%

6%

7%

695

700

705

710

715

720

725

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

UPM

Brigl

SappiFeldmühle

Others

Market Split

Source: Smithers Pira / Risi / Own estimation

Market size – self-adhesive EuropeSappi is No. 3 in Europe after UPM and Ahlstrom

38

491 50

2 512 52

2 533

10%11%

13%

18%

20%

0%

5%

10%

15%

20%

25%

470

480

490

500

510

520

530

540

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

UPM

Ahlstrom

Sappi

Delfort

Others

Market split

Source: Smithers Pira / Risi / Own estimation

Capacity Limit reached

Market size – digital solutions EuropeSappi is market leader in dye sublimation in Europe

39

35 40

45 50

58

17%

25%

0

0.05

0.1

0.15

0.2

0.25

0.3

-

10

20

30

40

50

60

70

FY15 FY16 FY17 FY18 FY19

Market Size (kton) Sappi Market share

Sappi

Neenah

F. Schoeller

Beaver

Hansol

Others

Market split

Source: Smithers Pira / Pöyry / Risi / Own estimation

40

Sappi Europe

* Sales less operating profit excluding special items divided by tons sold.** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

Q1 FY20 Q4 FY19 Q1 FY19

Tons sold (‘000) 795 801 809

Sales (EURm) 619 633 642

Price/Ton (EUR) 779 790 794

Cost/Ton* (EUR) 737 764 756

Operating profit excluding special items** (EURm) 33 21 30

Western Europe

41

Coated paper deliveries and prices

0.4

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

Q1

08

Q1

09

Q1

10

Q1

11

Q1

12

Q1

13

Q1

14

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

CWF Demand MCR Demand CWF 100gsm Sheets LWC 60gsm offset reels

Western Europe shipments including export.Source: Cepifine, Cepiprint and RISI indexed to calendar 1Q 2008.

42

Sappi North America

* Sales less operating profit excluding special items divided by tons sold.** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

Q1 FY20 Q4 FY19 Q1 FY19

Tons sold (‘000) 377 388 321

Sales (USDm) 370 394 351

Price/Ton (USD) 981 1,015 1,093

Cost/Ton* (USD) 979 972 1,065

Operating profit excluding special items** (USDm) 1 17 9

United States of America

43

Coated paper deliveries and prices

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

Q1

08

Q1

09

Q1

10

Q1

11

Q1

12

Q1

13

Q1

14

Q1

15

Q1

16

Q1

17

Q1

18

Q1

19

Domestic CWF shipments Domestic CWF purchases RISI price CFS #3 60lb rolls

US industry purchases defined as industry shipments, plus imports, less exports.Source: AF&PA and RISI indexed to calendar Q1 FY08.

44

Sappi South Africa

* Sales less operating profit excluding special items divided by tons sold.** Refer to the supplementary information in this presentation for a reconciliation of EBITDA to reported operating profit and page 22 in our Q1 FY20 financial results booklet (available on www.sappi.com) for a definition of special items.

Q1 FY20 Q4 FY19 Q1 FY19

Tons sold (‘000) 338 450 396

Sales (ZARm) 3,549 5,145 4,709

Price/Ton (ZAR) 10,500 11,433 11,891

Cost/Ton* (ZAR) 9,541 9,216 8,818

Operating profit excluding special items** (ZARm) 324 998 1,217

45

Paper pulp prices*

* Source: FOEX, CCF group.

EUR

/ton

400

500

600

700

800

900

1,000

1,100

400

500

600

700

800

900

1,000

1,100

1,200

1,300

NBSK Europe (USD) BHKP Europe (USD) Net BHKP China (USD) NBSK Europe (EUR) BHKP Europe (EUR)

46

Dissolving pulp prices*

* Source: CCF group

600

650

700

750

800

850

900

950

1,000

1,050

1,100

Imp SW DWP Imp HW DWP China origin DWP

US$

/ton

47

Textile fibre prices*

* Source: CCF group

800

1,200

1,600

2,000

2,400

2,800

Cotton 328 Cotton "A" Index PSF 1.4 D VSF 1.2 D VSF 1.5 D

US$

/ton

Cash flow

48

US$m Q1 FY20 Q4 FY19 Q1 FY19Cash generated from operations 136 176 197Movement in working capital (76) 132 (87)

Net finance costs paid (35) (5) (8)

Finance income received 2 3 3

Taxation (paid) refund (32) - (3)

Cash generated from operating activities (5) 306 102Cash utilised in investing activities (273) (133) (109)Capital expenditure (112) (135) (106)

Proceeds on disposal of assets - 1 -

Acquisition of subsidiary (158) - -

Other non-current asset movements (3) 1 (3)

Net cash generated (utilised) (278) 173 (7)

Excluding special items* reconciliation to reported operating profit

49

EBITDA and operating profit

* Refer to page 22 in our Q1 FY20 results booklet (available on www.sappi.com) for a definition of special items.

US$m Q1 FY20 Q4 FY19 Q1 FY19

EBITDA excluding special items* 139 185 197Depreciation and amortisation (77) (76) (69)

Operating profit excluding special items* 62 109 128Special items* - gains (losses) (7) (12) (5)

Plantation price fair value adjustment 6 5 3

Acquisition cost (5) (2) -

Net restructuring provisions (1) - -

Profit on disposal and written off assets - (7) -

Asset impairments - (7) -

Fire, flood, storm and other events (7) (1) (8)

Operating profit 55 97 123

Fibre properties and applications

50

Cellulosic fibre properties helping drive that growth

Source: IHS Global, RISI, Hawkins Wright.

Key strength Qualifies Issue

ApparelHome textilesNonwovens/Technical textiles

Overall value proposition

Applications

Function and feel

Appearance

Sustainability

1762

21

6627

7

5220

28

Cellulosic fibres Cotton Polyester

• On a pure property basis, cellulosic fibres are superior to cotton and differentiated on sustainability.

• Polyester is differentiated on strength/durability versus cotton and cellulosic fibres.

• Natural and attractive, ‘greener’ alternative to cotton

• Natural, functional and well established

• Cheap, durable and versatile

Durability

Absorbency Breathability Softness

Drape Dyeability

Brightness/Lustre

Renewable and biodegradeable

Resource efficiency

51

There is still significant headroom to increase the level of cellulosic fibre blending in most sub-categories

Source: Expert interviews.

POLYESTER

Future Today Gap Today Future Gap Today Future Gap COTTON CELLULOSIC

Apparel

Home textile

Towels 5% 5% 0% 80% 75% -6% 15% 20% +33%

Bedding 45% 55% +22% 45% 40% -11% 1% 2% +100%

Denim 5% 5% 0 95% 95% 0% 0% 0% 0%

Shirts 35% 40% +14% 50% 40% -20% 15% 20% +33%

T-shirts 30% 50% +67% 70% 50% -29% 3% 5% 0%

Dresses 10% 10% 0% 35% 25% -29% 55% 65% +18%

Suits 35% 40% +14% 25% 20% -20% ~1% ~2% +100%

Sportswear 85% 85% 0% 0% 0% 0% 15% 15% 0%

Casual wear 45% 50% +11% 45% 35% -22% 10% 15% +50%

Thank you

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