SAPPI LIMITED - Update on Proposed Graphic Papers Joint Venture with UPM

Update on Proposed Graphic Papers Joint Venture with UPM

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

Update on Proposed Graphic Papers Joint Venture with UPM

Sappi notes that the European Commission has issued a Letter of Facts stating that it continues to have concerns
regarding the proposed European graphic papers joint venture between Sappi and UPM.

A Letter of Facts forms part of the European Commission's Phase II merger review process. Sappi and UPM continue
to engage constructively with the Commission and are preparing a response. In parallel, the parties intend to submit
proposals for certain remedies to address the issues raised by the Commission.

Sappi continues to believe that the proposed joint venture represents an appropriate response to the structural
decline in European graphic paper markets. By combining complementary assets and capabilities, the transaction is
expected to create a more efficient and sustainable manufacturing platform, enable the orderly management of
capacity in line with market demand, and help maintain a reliable supply of graphic papers to customers across
Europe.

The Phase II review process remains ongoing, and no final determination has been made by the European
Commission. The parties remain committed to engaging openly and constructively with the Commission as it
continues its assessment of the proposed transaction.

As previously announced, the proposed joint venture remains subject to the receipt of the necessary regulatory
approvals, including merger control clearance from the European Commission, as well as the fulfilment of other
conditions precedent. The parties expect the European Commission final decision by the end of 2026 or shortly
thereafter.

Sappi will provide further updates as appropriate.

05 October 2026

South African Corporate Advisor, Sponsor and Corporate Broker to Sappi
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/10/2026 10:38:15
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