Slide 1: Investor Update
1 Investor Update 2024 Citi Basic Materials Conference December 3-4, 2024 © 2024 Sylvamo Corporation. All rights reserved.
Slide 2: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements 2 This presentation contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that
Slide 3: Statement relating to non-U.S. financial GAAP measures
Statement relating to non-U.S. financial GAAP measures 3 Sylvamo reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). This presentation does not include non-U.S. GAAP financial measures. However, non-U.S. GAAP financial measure
Slide 4: UFS remains the most resilient graphic paper grade in the world
UFS remains the most resilient graphic paper grade in the world 4 We believe in long-term UFS demand for education, communication and entertainment World Graphic Paper Demand World Graphic Paper Demand Evolution 70,000 CFS 60,000 17% Thousand short tons 50,000 Uncoated Freesheet 2023 40,000 UFS 55%
Slide 5: Executing our strategy - We Are a Cash Flow Story
Executing our strategy - We Are a Cash Flow Story 5 Investing to strengthen Leveraging our strengths Focusing on competitive advantages to drive high returns on uncoated freesheet to drive earnings and invested capital cash flows © 2024 Sylvamo Corporation. All rights reserved.
Slide 6: Allocating capital to drive long-term shareowner value
Allocating capital to drive long-term shareowner value 6 Maintain Strong Financial Position Reinvest in Return Cash to our Business Shareowners © 2024 Sylvamo Corporation. All rights reserved.
Slide 7: Favorable ruling in Brazilian goodwill tax dispute leads to elimination of the escrow
Favorable ruling in Brazilian goodwill tax dispute leads to elimination of the escrow 7 3Q24 Earnings Call • Positive development in the ongoing dispute with Brazilian authorities over goodwill tax deductions • A Brazilian court has ruled in our favor on a case covering 2/3 of the amount disputed •
Slide 8: We plan to pay down ~$120 million in debt in 4Q24
We plan to pay down ~$120 million in debt in 4Q24 8 Gross Debt $ Million $1,520 $918 ~$800 Initial Gross Debt at Spinoff Sep 2024 Pro-forma Oct 1, 2021 Dec 2024 Maintain a strong financial position to operate and invest throughout the cycle © 2024 Sylvamo Corporation. All rights reserved.
Slide 9: Investing in high-return projects to increase earnings and cash flows
Investing in high-return projects to increase earnings and cash flows 9 Further ramping up our high-return investment spending in 2025 Capital Spending $ Million $210 $210 - $220 $33 $30 - $35 $149 $6 $22 4Q21 2022 2023 2024 Outlook Maintenance, Regulatory and Brazil Reforestation High-return © 2024
Slide 10: Confident in our future and motivated by opportunities that lie ahead
Confident in our future and motivated by opportunities that lie ahead 10 Creating shareowner value through cash generation and disciplined capital allocation • Improving our healthy financial position to provide further flexibility • Reinvesting in our businesses to increase earnings and cash flows
Slide 11: Appendix
11 Appendix © 2024 Sylvamo Corporation. All rights reserved.
Slide 12: Contacts
Contacts 12 Hans Bjorkman Vice President, Investor Relations Investor Relations +1-901-519-8030 hans.bjorkman@sylvamo.com Adam Ghassemi Senior Manager, Corporate Communications Media +1-901-519-8115 adam.ghassemi@sylvamo.com © 2024 Sylvamo Corporation. All rights reserved.
Slide 13: Favorable Ruling in Brazilian Goodwill Tax Dispute
Favorable Ruling in Brazilian Goodwill Tax Dispute 13 • The deductibility of goodwill from International Paper’s 2007 acquisition of the Luis Antonio mill has been under dispute with Brazilian tax authorities since before our spinoff • If a settlement or unfavorable judgement occurs, IP would pay 60
Slide 14: Improved debt maturity profile
Improved debt maturity profile 14 September 30, 2024 $441 $ Million $189 $161 $10 $41 $41 $23 $12 2024 2025 2026 2027 2028 2029 2030 2031 Term Loan F AR Securitization Term Loan A Term Loan F 2 December 31, 2024 Pro-Forma $ Million $368 $189 $161 $0 $20 $23 $23 $12 2024 2025 2026 2027 2028 2029 2030
Slide 15: Executing on our Investment Thesis
Executing on our Investment Thesis 15 The World’s Paper Company A Simple, Focused Plan We are the world’s paper company, the: We focus on uncoated freesheet and will create long-term • Employer of Choice value through: • Supplier of Choice • Talented teams • Investment of Choice • Iconic brands We b
Slide 16: Building a better future for people, the planet and our company
16 Building a better future for people, the planet and our company © 2024 Sylvamo Corporation. All rights reserved.