Sylvamo Corporation · NYSE:SLVM

Sylvamo — BofA Securities 2022 Global Agriculture and Materials Conference

82 slides from Sylvamo's conference presentation, Mar 2, 2022

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 within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statem
Slide 3: Statement relating to non-U.S. financial GAAP measures
Statement relating to non-U.S. financial GAAP measures 3 While Sylvamo reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP financial measures are presented. Managem
Slide 4: Why Sylvamo is a compelling investment
Why Sylvamo is a compelling investment 4 Focused on Free Cash Flow Generation and Shareowner Value Creation Commercial Operational Financial Advantages Advantages Focus • Strong supply positions • Low-cost mills in attractive • Robust free cash flow regions • Iconic brands • Strong balance sheet • B
Slide 5: Why we believe in uncoated freesheet
Why we believe in uncoated freesheet 5 • The promise of paper to educate, communicate and entertain We Believe In • The long-term demand for Uncoated Freesheet 60,000 World Graphic Paper Demand 50,000 Uncoated Freesheet 000 Metric Tons 40,000 30,000 20,000 Coated Freesheet 10,000 Newsprint Coated Me
Slide 6: Svetogorsk Mill Update
Svetogorsk Mill Update 6 Svetogorsk mill may curtail or temporarily shut down production due to inadequate supplies of critical raw materials from Europe • Currently operating while we take steps to mitigate the supply chain issues and continue production • Has 720,000 short tons of annual capacity
Slide 7: We are not just a North American paper company
We are not just a North American paper company 7 2021 Segment Adjusted EBITDA Mix North #2 supply position in America Latin North America 35% America #1 supply position 43% in Latin America Europe #3 supply position in Europe 22% #1 supply position in Russia Source: Supply positions from Fisher Inte
Slide 8: Strong recovery in 2021
Strong recovery in 2021 8 Net Sales Adjusted EBITDA Adjusted Operating $ Million $ Million Earnings per Share +16% +59% +71% $3,502 $6.94 $594 $3,009 19.5% $373 $4.05 14.6% 17.0% 14.1% 12.4% 2020 2021 2020 2021 2020 2021 © 2021 Sylvamo Corporation. All rights reserved.
Slide 9: Favorable UFS industry momentum moving into 2022
Favorable UFS industry momentum moving into 2022 9 Favorable Supply & Demand • Strong demand in all regions • Public announcements indicate net capacity reductions in Western Europe and North America Unfavorable Input Costs • Expect continued cost increases for fiber, chemicals and transportation Fa
Slide 10: 2022 Key Objectives
2022 Key Objectives 10 • Win with key customers Commercial • Focus on attractive segments Excellence • Drive iconic brands • Injury-free operations Operational • Run well and service customers well Excellence • Invest capital to strengthen low-cost positions • Drive Free Cash Flow and increase Adjus
Slide 12: Management Team
Management Team 12 Jean-Michel Ribiéras John Sims Matt Barron Thomas A. Cleves Rodrigo Davoli Chairman and Senior Vice President and Senior Vice President and Senior Vice President, Senior Vice President Chief Executive Officer Chief Financial Officer General Counsel Corporate Affairs General Manage
Slide 13: The Sylvamo Promise
The Sylvamo Promise 13 We believe in the promise of paper to educate, communicate and entertain. Paper connects us to one another and is an enduring bond to renewable natural resources. Our purpose is to produce the paper you need in the most responsible and sustainable ways. We aim high, innovate,
Slide 14: Vision & Mission
Vision & Mission 14 Our Vision To be the world’s paper company: the employer, supplier and investment of choice Our Mission We transform renewable resources into papers that people depend on for education, communication and entertainment © 2021 Sylvamo Corporation. All rights reserved.
Slide 15: Our Values
Our Values 15 We always do the right things, in the right ways, for the right reasons. People Ethics We care about people’s health, safety and We hold ourselves and each other to development. We look out for each other to ensure act in accordance with our values. everyone returns home safely each da
Slide 16: Our Strategy
Our Strategy 16 Commercial Operational Financial Excellence Excellence Discipline Be the supplier of choice Operate as a responsible, Be the investment of by leveraging a deep agile and low-cost choice by delivering understanding of end-use company. consistently on our applications and compelling in
Slide 17: Low-cost mills in the most attractive regions
Low-cost mills in the most attractive regions 17 Capacity Sylvamo with Georgetown (Million Short Tons) Mills and Riverdale North America 1.1mm1 Uncoated Freesheet 2.8 3.4 Total 3.5 4.1 Ticonderoga, New York Memphis Europe 1.1mm2 Corporate Headquarters Eastover, South Carolina Svetogorsk, Russia Lati
Slide 18: Capacity by Grade
Capacity by Grade 18 Coated Board & 000 Short Tons Uncoated Papers Market Pulp Total Other Saillat 265 130 - 395 Svetogorsk 420 170 130 720 Europe 685 300 130 1,115 Luis Antonio 385 130 - 515 Mogi Guacu 460 35 - 495 Tres Lagoas 260 - - 260 Latin America 1,105 165 0 1,270 Eastover 700 115 - 815 Ticon
Slide 19: Opportunities to enhance value
Opportunities to enhance value 19 Return cash to shareowners Capital Allocation Invest in high-return projects Focus Serving the interests of our customers Simplify Clear strategy and tactics, more agile © 2021 Sylvamo Corporation. All rights reserved.
Slide 21: Our Investment Thesis
Our Investment Thesis 21 The World’s • Be the employer, supplier and investment of choice Paper Company • Believe in the promise of paper to educate, communicate and entertain • Commercial Excellence, Operational Excellence and Financial Discipline Three-pronged • Create long-term value via talented
Slide 22: Uncoated freesheet is sustainable, affordable and functional
Uncoated freesheet is sustainable, affordable and functional 22 Sustainable Affordable Functional • Paper is one of the most recycled materials in the world: 74% - Europe, 67% - Latin America and 66% - North America1 • Results from 33 studies that tested students’ comprehension showed that students
Slide 23: Uncoated freesheet is the largest and most resilient paper segment globally
Uncoated freesheet is the largest and most resilient paper segment globally 23 UFS has the highest number of end-use applications across multiple industries and segments (notebooks, books, copy paper, letterheads, commercial printing, forms, file folders, etc.) 60,000 World Graphic Paper Demand 50,0
Slide 24: Uncoated freesheet is used across all sectors of the economy
Uncoated freesheet is used across all sectors of the economy 24 North America Western Europe Brazil Healthcare 26% Healthcare 18% Education 32% Financial and insurance 14% Education 13% Professional and technical 16% Education 12% Public administration 12% Information and communication 14% Professio
Slide 25: Demand expected to continue to grow in Eastern Europe and Latin America
Demand expected to continue to grow in Eastern Europe and Latin America 25 • Demand rebounding strongly from 2020 Pandemic • Re-opening of businesses, offices and schools Key Short-term • Impact of work-from-home policies Demand Drivers Ukraine Conflict • Potential impacts from sanctions Electronic
Slide 26: Well-positioned in attractive regions
Well-positioned in attractive regions 26 Europe Latin America North America Bio Navigator Pappel Others 24% 13% 17% Others 22% Suzano Domtar 29% Others PCA 35% 24% 10% UPM Mondi Pixelle 12% 22% 10% Stora Enso 6% Sylvamo Sylvamo Sylvamo 14% 34% 28% 2021 – 2026 Projected Demand CAGR Eastern Europe 0.5
Slide 27: ~70% of capacity in lowest-cost quartiles
~70% of capacity in lowest-cost quartiles 27 1800 Brazilian domestic tax incentive and other rights 1400 make Três Lagoas cost-competitive globally More than 70% of capacity in the lowest Cash Cost Per Short Ton quartiles of global and regional cost curves 1000 Z 600 200 10 20 30 40 Cumulative Milli
Slide 28: ESG practices embedded throughout culture and strategy
ESG practices embedded throughout culture and strategy 28 Environmental Social Governance  Healthy and productive  Employee & contractor  Code of Conduct forest ecosystems safety  8 of 9 directors  GHG reductions  Inclusive workplaces independent  Water stewardship  Diverse workforces  Tale
Slide 29: Sylvamo 2030 Goals
Sylvamo 2030 Goals 29 Sustainable Thriving People Responsible Forests and Communities Operations Goal Goal Goal Ensure healthy and productive forest Protect and improve the lives of our Improve our climate impact and our ecosystems employees, and support our communities stewardship of natural resour
Slide 30: Key competitive advantages
Key competitive advantages 30  Attractive regions  Low-cost mills  Iconic brands  Committed channel partnerships  Talented teams  Robust, resilient free cash flow © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 32: The World's Paper Company delivers
The World’s Paper Company delivers 32 2021 $3.5 Billion Net Sales $594 Million Adjusted EBITDA 17.0% Adjusted EBITDA Margin Portion of Adjusted EBITDA Generated 65% in Europe and Latin America Gross Debt-to-Adjusted EBITDA Ratio 2.4X as of 12.31.21 Net-Debt-to-Adjusted EBITDA Ratio is 2.1X as of 12.
Slide 33: Strong 4Q21 results in first standalone quarter
Strong 4Q21 results in first standalone quarter 33 Net Sales Adjusted EBITDA Adjusted Operating $ Million $ Million Earnings per Share $972 $908 $177 $170 $2.27 $796 $1.57 $1.71 19.5% $112 14.6% 14.1% 14.1% 19.5% 17.5% 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 © 2021 Sylvamo Corporation. All righ
Slide 34: Solid 4Q21 performances generated 17.5% Adjusted EBITDA Margin
Solid 4Q21 performances generated 17.5% Adjusted EBITDA Margin 34 Commercial • Strong order book - running at full capacity Excellence • Price & Mix exceeded Input Cost increases Operational • Good execution in challenging supply chain environments Excellence • Safe and efficient annual outages at E
Slide 35: Innovation to Expand End-use Applications
Benefiting from Commercial Excellence and low-cost operations 35 Innovation to Expand Ease of Leveraging End-use Applications Doing Business Global Footprint © 2021 Sylvamo Corporation. All rights reserved.
Slide 36: Commercial and operational performances drove strong earnings
Commercial and operational performances drove strong earnings 36 4Q21 vs. 3Q21 Adjusted EBITDA $ Million 300 $14 $2 ($24) $41 250 ($39) $177 $170 200 150 19.5% 17.5% 100 50 0 3Q21 Price & Mix Volume Operations Maintenance Input and 4Q21 and Costs Outages Transportation Costs © 2021 Sylvamo Corporati
Slide 37: Strong regional performances
Strong regional performances 37 4Q21 Adjusted EBITDA Region 4Q21 vs. 3Q21 Highlights $ Million Margin • Realization of prior price increases in all regions Europe $27 9% • Improving volumes in Europe and Latin America and continued strong volume in North America • Good operations Latin America $81 3
Slide 38: Global uncoated freesheet demand continues to recover
Global uncoated freesheet demand continues to recover 38 2021 UFS Industry Demand Growth Europe 5.9% Latin America 13.7% North America 4.2% Global 3.2% Our 2021 UFS shipments were up 12% vs. 2020 Source: Pulp and Paper Products Council © 2021 Sylvamo Corporation. All rights reserved.
Slide 39: Driving strong Free Cash Flow and allocating cash to drive shareowner value
Driving strong Free Cash Flow and allocating cash to drive shareowner value 39 Free Cash Flow 2022 Uses of Cash $ Million $162 • $178 million in capital spending, including cost reduction • $77 million in one-time GT and RD inventory payments $135 • $72 million in one-time and transition services co
Slide 40: Strengthening our balance sheet
Strengthening our balance sheet 40 Year-end 2021 Debt $ Million Maturity 4Q21 Revolving Credit Facility $20 2026 • Repaid $124 million of debt Secured Farm Credit Term Loan F $517 2027 • Increased cash by $48 million • Swapped $400 million of Secured Term Loan B $410 2028 floating rate debt to fixed
Slide 41: Key covenants of credit agreement
Key covenants of credit agreement 41 Annual Cash Restrictions until Resolution of the Brazilian Tax Dispute Gross Debt-to- Restricted Equity Restricted Debt Restricted Adjusted EBITDA Payments Payments Investments1 Leverage Ratio 2.5X or Higher $25 million < 2.5X $50 million < 2.0X $75 million There
Slide 42: Contingent tax liability
Contingent tax liability 42 Brazilian tax authorities have disputed the deductibility of goodwill from IP’s 2007 acquisition of the Luis Antonio mill • No liability has been recorded as no loss is deemed probable at this time • If a settlement or judgement occurs, Sylvamo would pay a maximum of $120
Slide 43: Financial discipline
Financial discipline 43 • Strong balance sheet across economic cycles Cash Culture • Focus on cash generation • High-return, short-payback investments • Continue to repay debt Leverage and Liquidity • Minimum cash balance of $100 million • Return cash to shareowners, subject to Board approval and de
Slide 45: Strong positions in attractive regions
Strong positions in attractive regions 45 Latin North Europe America America #3 #1 #2 Sylvamo Supply Position #1 in Russia 61% 76% 72% First-quartile Cost Capacity Tres Lagoas low-cost Svetogorsk is Eastover the lowest-cost given contract first-quartile North American mill and tax benefits Source: S
Slide 46: Iconic brands
Iconic brands 46 Russia Europe Latin America North America Global SvetoCopy has the highest The conscious-choice Chamex has strongest Hammermill Paper is the Exclusive global supplier of frequency of repeat brand for European brand recognition in Latin brand most purchased by one of the most-recogni
Slide 47: #3 supply position in Europe; #1 position in Russia
#3 supply position in Europe; #1 position in Russia 47 Navigator 24% Others 22% $1,040 Million UPM Mondi 2021 Sales 12% 22% Stora Enso 6% Sylvamo 14% Source: Supply positions from Fisher International as of September 2021 © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 48: Key strategic advantages in Europe
Key strategic advantages in Europe 48 23-year successful track record of operating in Russia Strong and steady cash flow generation over time SvetoCopy - Strong supply position and brand loyalty First branded office paper produced in Russia Svetogorsk - 1st-quartile mill that serves Russia and expor
Slide 49: Favorable European industry supply and demand dynamics
Favorable European industry supply and demand dynamics 49 Eastern Europe Capacity Demand Western Europe Capacity Demand 2014 – 2019 0.6% (0.7%) 2014 - 2019 (2.4%) (2.9%) 2021 – 2026 (2.2%) 0.5% 2021 – 2026 (3.7%) (2.4%) 10,000 W. Europe Capacity W. Europe Demand E. Europe Capacity E. Europe Demand 8
Slide 50: Commercial advantages in Europe
Commercial advantages in Europe 50 Iconic Mill Brand & Exclusive HP Brand Antalis, Europapier, Finsib, Inapa, Winning Customers Komus, Lyreco, Tetra Pak and others Attractive Segments Digital Printing, Premium Grades e-commerce and Retail for Work-from-Home, New Approaches / Channels Paper as a Serv
Slide 51: European mills
European mills 51 Capacity (Million Short Tons) UFS 0.4 • Copy Paper Svetogorsk • Coated Paperboard Total 0.7 • Market Pulp • Copy Paper UFS 0.3 • Premium Laser Saillat • Premium Inkjet Total 0.4 • Colors • Market Pulp © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 52: Europe Adjusted EBITDA
Europe Adjusted EBITDA 52 4Q21 vs. 3Q21 70 $3 $4 ($21) $5 $49 60 ($12) 50 40 $27 30 19% 20 9% 10 0 3Q21 Price & Mix Volume Operations Maintenance Input Costs 4Q21 Outages $ Million 4Q21 vs. 4Q20 $12 ($17) 70 $2 60 $25 ($19) 9% 50 19% 40 $24 $27 30 20 10% 9% 10 Maintenance 0 4Q20 Price & Mix Volume O
Slide 53: #1 supply position in Latin America
#1 supply position in Latin America 53 Bio Pappel 13% Suzano 29% Others 24% $786 Million 2021 Sales Sylvamo 34% Source: Supply positions from Fisher International as of September 2021 © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 54: Key strategic advantages in Latin America
Key strategic advantages in Latin America 54 Chamex - Leading brand in Latin America 29% supply position Exports to a majority of Latin American countries U.S. Dollar revenues provide a natural currency hedge Three global low-cost mills with ability to ship globally High margins generate substantial
Slide 55: Favorable Latin American industry supply and demand dynamics
Favorable Latin American industry supply and demand dynamics 55 Latin America Capacity Demand 2014 – 2019 (0.3%) (3.1%) 2021 – 2026 (1.1%) 0.6% Capacity Demand 6,000 000 Metric Tons Global low-cost position allows all Sylvamo Brazilian mills to run at full capacity 4,000 3,430 2,784 2,000 2014 2015
Slide 56: Commercial advantages in Latin America
Commercial advantages in Latin America 56 Iconic Mill Brands & Exclusive HP Brand Acco Brands, CMPC, Kalunga, Nagem, Winning Customers Oji Papers, Perez Trading, and others Attractive Segments Specialized Retail, Digital Printing, Industrial Conversion New Approaches / Channels Innovative Products,
Slide 57: Global low-cost Latin American mills
Global low-cost Latin American mills 57 Capacity (Million Short Tons) UFS 0.4 • Copy Paper Luis Antonio • Offset Total 0.5 • Market Pulp UFS 0.5 • Copy Paper Mogi Guacu • Offset Total 0.5 • Market Pulp UFS 0.3 • Copy Paper Tres Lagoas • Offset Total 0.3 © 2021 Sylvamo Corporation. All rights reserve
Slide 58: Our eucalyptus plantations are a key advantage
Our eucalyptus plantations are a key advantage 58 Own 100,000 hectares of forestland • 75,000 hectares of eucalyptus trees • 25,000 hectares of protected forests Plant 14 million seedlings per year 80% fiber self-sufficient 80 kilometer (50 miles) average haul distance © 2021 Sylvamo Corporation. Al
Slide 59: Latin America Adjusted EBITDA
Latin America Adjusted EBITDA 59 4Q21 vs. 3Q21 100 $11 ($2) $7 ($9) $81 90 $14 80 $59 70 60 50 35% 40 30% 30 20 10 0 3Q21 Price & Mix Volume Operations Maintenance Input Costs 4Q21 Outages $ Million 4Q21 vs. 4Q20 $5 $0 ($23) 120 $46 $0 100 $81 9% 80 19% $54 60 40 27% 35% 20 Maintenance 0 4Q20 Price
Slide 60: #2 supply position in North America
#2 supply position in North America 60 Others 17% PCA 10% Domtar 35% $1,718 Million 2021 Sales Pixelle 10% Sylvamo 28% Source: Supply positions from Fisher International as of September 2021 © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 61: Key strategic advantages in North America
Key strategic advantages in North America 61 Strong supply position in all major UFS segments Coverage across multiple end-use applications through various channels Strong portfolio of iconic brands and private label products Hammermill brand associated with quality and willingness to pay Attractive
Slide 62: Favorable North American industry supply and demand dynamics
Favorable North American industry supply and demand dynamics 62 North America Capacity Demand 2014 – 2019 (3.1%) (3.5%) 2021 – 2026 (1.9%) (2.8%) Capacity Demand 10,000 8,000 000 Metric Tons 6,000 5,513 5,168 4,000 2,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Pre-Pandemic P
Slide 63: Commercial advantages in North America
Commercial advantages in North America 63 Iconic Mill Brand & Exclusive HP Brand Amazon, Central National Gottesman, Winning Customers Staples, and others Attractive Segments Books on Demand, Digital Printing New Approaches / Channels e-commerce, Paper as a Service, End-User Selling Innovation Produ
Slide 64: North American mills
North American mills 64 Capacity (Million Short Tons) • Copy Paper UFS 0.7 • Envelope Eastover • Forms Total 0.8 • Offset • Market Pulp UFS 0.3 • Premium Color Copy • Premium Laser Copy Ticonderoga • Opaques Total 0.3 • Colors UFS 0.1 • Bristols • Colors IP Georgetown • Envelope Total 0.3 • Specialt
Slide 65: Offtake early termination rights
Offtake early termination rights 65 Termination Rights IP SLVM with 180-day Notice Georgetown JAN 1, 2023 JAN 1, 2025 Riverdale JAN 1, 2024 JAN 1, 2026 © 2021 Sylvamo Corporation. All rights reserved. The World’s Paper Company
Slide 66: North America Adjusted EBITDA
North America Adjusted EBITDA 66 4Q21 vs. 3Q21 120 $22 ($0) $0 ($10) 100 ($18) $69 $62 80 60 40 15% 13% 20 0 3Q21 Price & Mix Volume Operations Maintenance Input Costs 4Q21 $ Million Outages 4Q21 vs. 4Q20 140 $35 ($8) ($47) 120 $11 9% 100 $38 19% $62 80 60 $34 40 13% 9% 20 Maintenance 0 4Q20 Price &
Slide 68: Sylvamo: 2021 vs. 2020 Adjusted EBITDA
Sylvamo: 2021 vs. 2020 Adjusted EBITDA 68 $ Million 900 $144 ($15) ($193) 800 $64 700 $221 $594 600 500 $373 400 300 12.4% 17.0% 200 100 0 2020 Price & Mix Volume Operations Maintenance Input Costs 2021 Outages © 2021 Sylvamo Corporation. All rights reserved.
Slide 69: Sylvamo: 4Q21 vs. 4Q20 Adjusted EBITDA
Sylvamo: 4Q21 vs. 4Q20 Adjusted EBITDA 69 $ Million 350 $50 ($25) 300 ($89) $13 $109 250 $170 200 150 $112 100 14.1% 17.5% 50 0 4Q20 Price & Mix Volume Operations Maintenance Input Costs 4Q21 Outages © 2021 Sylvamo Corporation. All rights reserved.
Slide 70: Price & Mix outpaced Input Costs in 2021
Price & Mix outpaced Input Costs in 2021 70 Change of Price & Mix 2021 vs. 2020 Input Costs vs. Input Costs Change By Region ($ Million) ($ Million) +$28 Europe Latin America North America (2) $221 (17) (2) (23) (32) $193 (5) (12) (2) ($28) (15) (27) (8) (2) (12) (5) ($60) (29) ($105) 2021 vs 2020 P
Slide 71: Price & Mix outpaced Input Costs in 4Q21
Price & Mix outpaced Input Costs in 4Q21 71 Change of Price & Mix 4Q21 vs. 3Q21 Input Costs vs. Input Costs Change By Region ($ Million) ($ Million) +$20 Europe Latin America North America $109 (3) (4) (6) $89 (3) (7) +$2 (2) (6) (2) ($9) $41 $39 ($12) (2) (1) (3) 4Q21 vs 3Q21 4Q21 vs 4Q20 ($18) Pri
Slide 72: Strong commercial performances
Strong commercial performances 72 2021 vs. 2020 4Q21 vs. 4Q20 Sylvamo UFS Shipments Sylvamo UFS Shipments +12% +6% +11% +14% North America +22% 5.9% +0% Latin America Europe +3% +2% 2020 2021 4Q20 4Q21 Shipments in tons © 2021 Sylvamo Corporation. All rights reserved.
Slide 73: 2021 Delivered Cost of Goods Sold
2021 Delivered Cost of Goods Sold 73 Distribution 16% Fiber 22% Depreciation 5% $2.2 Woo Labor 13% Billion d Chemicals 14% Energy Fixed 9% 16% Packaging 5% © 2021 Sylvamo Corporation. All rights reserved.
Slide 74: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 74 $ Million 3Q21 4Q21 FY20 FY21 Cash Provided by Operations $157 $184 $359 $549 Cash Invested in Capital Projects ($22) ($22) ($75) ($76) Free Cash Flow $135 $162 $284 $473 Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provi
Slide 75: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 75 1Q22 $ Million 2020 2021 4Q20 3Q21 4Q21 Outlook Net Income $170 $331 $65 $92 $62 $65 - $73 Depreciation, Amortization, Cost of Timber Harvested 154 143 37 37 35 37 Interest (Income) Expense, Net (4) (2) (1) 10 17 18 Income Tax Provision (Benefit) 28 129 3
Slide 76: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 76 $ Million 2020 2021 4Q20 3Q21 4Q21 Adjusted EBITDA $373 $594 $112 $177 $170 Europe 115 132 24 49 27 Latin America 150 255 54 59 81 North America 108 207 34 69 62 Total Business Segment Adjusted EBITDA $373 $594 $112 $177 $170 Net Sales (excluding Corporat
Slide 77: Adjusted Operating Earnings per Share Reconciliation
Adjusted Operating Earnings per Share Reconciliation 77 1Q22 $ Million 2020 2021 4Q20 3Q21 4Q21 Outlook Net Income $170 $331 $65 $92 $62 $65 - $73 Special Items Expense (Income) 8 (26) 4 8 13 10 Adjusted Operating Earnings 178 305 69 100 75 75 - 83 Adjusted Operating Earnings per Share $4.05 $6.94 $
Slide 78: Direct Maintenance Outage Costs - 2021
Direct Maintenance Outage Costs - 2021 78 $ Million 1Q21 2Q21 3Q21 4Q21 2021 Europe $1 $7 $1 $16 $25 Latin America - - $5 - $5 North America - $21 $1 $17 $39 Total $1 $28 $7 $33 $69 Direct maintenance outage costs include only the direct labor & material costs. Total maintenance outage expenses incl
Slide 79: Direct Maintenance Outage Costs - 2022 Outlook
Direct Maintenance Outage Costs - 2022 Outlook 79 2022 $ Million 1Q22 2Q22 3Q22 4Q22 Outlook Europe - $9 - - $9 Latin America - - $6 - $6 North America $7 $18 $4 $18 $46 Total $7 $27 $10 $18 $61 Direct maintenance outage costs include only the direct labor & material costs. Total maintenance outage
Slide 80: Quarterly Business Segment Operating Results
Quarterly Business Segment Operating Results 80 Sales D&A Adjusted EBITDA $ Million 4Q20 3Q21 4Q21 4Q21 4Q20 3Q21 4Q21 Europe $239 $262 $297 $9 $24 $49 $27 Latin America $198 $200 $229 $15 $54 $59 $81 North America $376 $447 $463 $12 $34 $69 $62 Segment Total $813 $909 $989 $35 $112 $177 $170 Sum of
Slide 81: Annual Business Segment Operating Results
Annual Business Segment Operating Results 81 Sales Adjusted EBITDA $ Million 2020 2021 2020 2021 Europe $921 $1,040 $115 $132 Latin America $632 $786 $150 $255 North America $1,490 $1,718 $108 $207 Segment Total $3,043 $3,544 $373 $594 Sum of Business Segment net sales will not tie with consolidated

Sylvamo — BofA Securities 2022 Global Agriculture and Materials Conference on 6ix

Sylvamo — BofA Securities 2022 Global Agriculture and Materials Conference

Slide 1: Investor Update

Slide 2: Cautionary statement concerning forward-looking statements

Slide 3: Statement relating to non-U.S. financial GAAP measures

Slide 4: Why Sylvamo is a compelling investment

Slide 5: Why we believe in uncoated freesheet

Slide 6: Svetogorsk Mill Update

Slide 7: We are not just a North American paper company

Slide 8: Strong recovery in 2021

Slide 9: Favorable UFS industry momentum moving into 2022

Slide 10: 2022 Key Objectives

Slide 11: Company Overview

Slide 12: Management Team

Slide 13: The Sylvamo Promise

Slide 14: Vision & Mission

Slide 15: Our Values

Slide 16: Our Strategy

Slide 17: Low-cost mills in the most attractive regions

Slide 18: Capacity by Grade

Slide 19: Opportunities to enhance value

Slide 20: Investment Thesis

Slide 21: Our Investment Thesis

Slide 22: Uncoated freesheet is sustainable, affordable and functional

Slide 23: Uncoated freesheet is the largest and most resilient paper segment globally

Slide 24: Uncoated freesheet is used across all sectors of the economy

Slide 25: Demand expected to continue to grow in Eastern Europe and Latin America

Slide 26: Well-positioned in attractive regions

Slide 27: ~70% of capacity in lowest-cost quartiles

Slide 28: ESG practices embedded throughout culture and strategy

Slide 29: Sylvamo 2030 Goals

Slide 30: Key competitive advantages

Slide 31: Financial Highlights

Slide 32: The World's Paper Company delivers

Slide 33: Strong 4Q21 results in first standalone quarter

Slide 34: Solid 4Q21 performances generated 17.5% Adjusted EBITDA Margin

Slide 35: Innovation to Expand End-use Applications

Slide 36: Commercial and operational performances drove strong earnings

Slide 37: Strong regional performances

Slide 38: Global uncoated freesheet demand continues to recover

Slide 39: Driving strong Free Cash Flow and allocating cash to drive shareowner value

Slide 40: Strengthening our balance sheet

Slide 41: Key covenants of credit agreement

Slide 42: Contingent tax liability

Slide 43: Financial discipline

Slide 44: Regional Overviews

Slide 45: Strong positions in attractive regions

Slide 46: Iconic brands

Slide 47: #3 supply position in Europe; #1 position in Russia

Slide 48: Key strategic advantages in Europe

Slide 49: Favorable European industry supply and demand dynamics

Slide 50: Commercial advantages in Europe

Slide 51: European mills

Slide 52: Europe Adjusted EBITDA

Slide 53: #1 supply position in Latin America

Slide 54: Key strategic advantages in Latin America

Slide 55: Favorable Latin American industry supply and demand dynamics

Slide 56: Commercial advantages in Latin America

Slide 57: Global low-cost Latin American mills

Slide 58: Our eucalyptus plantations are a key advantage

Slide 59: Latin America Adjusted EBITDA

Slide 60: #2 supply position in North America

Slide 61: Key strategic advantages in North America

Slide 62: Favorable North American industry supply and demand dynamics

Slide 63: Commercial advantages in North America

Slide 64: North American mills

Slide 65: Offtake early termination rights

Slide 66: North America Adjusted EBITDA

Slide 67: Appendix

Slide 68: Sylvamo: 2021 vs. 2020 Adjusted EBITDA

Slide 69: Sylvamo: 4Q21 vs. 4Q20 Adjusted EBITDA

Slide 70: Price & Mix outpaced Input Costs in 2021

Slide 71: Price & Mix outpaced Input Costs in 4Q21

Slide 72: Strong commercial performances

Slide 73: 2021 Delivered Cost of Goods Sold

Slide 74: Free Cash Flow Reconciliation

Slide 75: Adjusted EBITDA and Margin Reconciliation

Slide 76: Adjusted EBITDA and Margin Reconciliation

Slide 77: Adjusted Operating Earnings per Share Reconciliation

Slide 78: Direct Maintenance Outage Costs - 2021

Slide 79: Direct Maintenance Outage Costs - 2022 Outlook