Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Investor Day (October 2023)
76 slides from Rayonier Advanced Materials's investor day presentation, Oct 10, 2023
Slide 1: Investor Day 2023
Investor Day 2023 October 10, 2023
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to RYAM’s future events, developments, or financial or operational per
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations and adjusted net debt. The Company believes these non-GAAP financ
Slide 4: Agenda
Agenda WELCOME PAPERBOARD AND HIGH-YIELD PULP Mickey Walsh, Treasurer & Vice President Investor Relations Ken Duffy, Vice President, High Yield and Paperboard Sales COMPANY OVERVIEW & STRATEGY De Lyle Bloomquist, President & Chief Executive Officer MANUFACTURING OPERATIONS Michael Osborne, Vice Pres
Slide 5: Today's Presenters
Today’s Presenters Slide STRONG MANAGEMENT TEAM WITH PROVEN TRACK RECORD De Lyle Joshua Hicks Christian Kenneth Duffy Michael Osborne Ben Chambers Marcus Moeltner Bloomquist Senior Vice President, Ribeyrolle Vice President, Vice President, Director, Sustainability Chief Financial Officer President a
Slide 6: Company Overview & Strategy
Company Overview & Strategy DE LYLE BLOOMQUIST PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 7: Overview
Overview Slide BUSINESS DESCRIPTION ⎔ For over 95 years, RYAM has developed a platform that produces natural cellulose fibers which create value in a diverse range of products – Leading global supplier of high purity cellulose specialties products – Sole producer of 3-ply paperboard in North America
Slide 8: Why Invest in RYAM?
Why Invest in RYAM? 1 Changing the Company’s Narrative Through a New Vision 2 Unique Growth Potential Going Forward 3 Significant Upside in Biomaterials Business 4 Credible Financial Plan to Fund Growth 8
Slide 9: RYAM History
RYAM History A RICH HISTORY OF INNOVATION Rainier Pulp Rayonier's team Rayonier Rayonier innovates Rayonier supplies Rayonier develops Rayonier Advanced RYAM produces develops sustainable discovers wood introduces cold fluff pulp for consumer cellulose for film/LCD thinner LCD films and Materials re
Slide 10: Overview: Global Footprint
Overview Employees U.S., Canada, France, Research Facilities 2,500 2 GLOBAL FOOTPRINT United Kingdom, China U.S. and France and Japan Sales Offices Manufacturing Facilities U.S., Canada, France, 4 7 U.S., Canada and France United Kingdom, China and Japan 10
Slide 11: Understanding the Value Chain
Understanding the Value Chain INPUT PROCESSING PRODUCTS END MARKETS Food CUSTOMIZED PER CUSTOMER APPLICATION FINISHING Ethers* Pharmaceuticals Industrial Filter Acetate* Plastic LCD/Film Hardwood & Kraft CUSTOMER END USES Softwood Tire Cord Casings Other CS* Filtration Pulping Bleaching Nitrocellulo
Slide 12: RYAM Is Everywhere
RYAM Is Everywhere Food Fluff Personal Hygiene Ethers Pharmaceuticals Industrial Lignin Biomaterials Filter Bioenergy Acetate Plastic Packaging LCD/Film Paperboard Lottery Tire Cord Commercial Print Casings Filtration Packaging Other CS High-Yield Nitrocellulose Paperboard Pulp Microcrystalline Prin
Slide 13: Values and Vision
Values and Vision DRIVERS OF TOTAL SHAREHOLDER RETURN Strengthen Increase Efficiency Identity & Effectiveness Total Shareholder Drive Collective Return Accelerate Accountability Innovation Diversify Customer Base 13
Slide 14: Yesterday, Today, & Tomorrow
Yesterday, Today, & Tomorrow Yesterday Today Tomorrow Commercial ⎔ Volume over price ⎔ Price stewardship ⎔ Expanded and less volatile ⎔ Margin volatility from ⎔ Reduce commodity exposure margins in core business commodity exposure ⎔ Increased competitive advantage via new product development ⎔ Growt
Slide 15: Strategic Options
Strategic Options Better Increase investments in our current assets to enhance efficiency, promote automation, and elevate returns Sell Non-core assets that don't provide a sustainable competitive advantage and that might be better managed by someone else Close Curtail assets based on market c
Slide 16: RYAM's Compelling Biofuture
RYAM’s Compelling Biofuture 1 RYAM has access to feedstock from its existing CS process 2 Economies of scale and variable contribution economics 3 Established technologies & markets demanding products Substantial incremental EBITDA with compelling margins and 4 investment returns 16
Slide 17: RYAM's Compelling Proposition
RYAM’s Compelling Proposition STABLE CORE & EMERGING BIOMATERIALS DRIVING EBITDA GROWTH Existing Business • Margin Expansion HIGHLIGHTS • Supply/Demand Balance • Reduced Commodity Exposure Stable Core CS Business Strong product mix with diverse end-markets Biomaterials Phase 1 ~1% CAGR Appealing Gro
Slide 18: High Purity Cellulose
High Purity Cellulose JOSHUA HICKS SVP, HIGH PURITY CELLULOSE
Slide 19: Key Messages - High Purity Cellulose
Key Messages - High Purity Cellulose The clear industry leader in the global Specialty Cellulose market with unique moat-like characteristics that support strong pricing. As the owner of the sole remaining softwood kraft plant in the Specialty Cellulose market, RYAM enjoys unparalleled benefits. Exe
Slide 20: RYAM – Specialty Cellulose Industry Leader
RYAM – Specialty Cellulose Industry Leader STRATEGIC INITIATIVES Customer Relationships Capacity Management Product Optimization Top 5 customers average 65+ years, Operating rates to match market Decrease commodity exposure to price leader, annual contracts demand in Specialty Cellulose stabilize co
Slide 21: A Strong Core: High Purity Cellulose Financials
A Strong Core: High Purity Cellulose Financials REVENUES ($ Millions) EBITDA ($ Millions) $170 $1,427 $1,336 $150 $139 $1,127 $1,091 $127 $1,051 $121 2019 2020 2021 2022 Q2'23 LTM 2019 2020 2021 2022 Q2'23 LTM 21
Slide 22: RYAM is the Leader in Specialty Cellulose
RYAM is the Leader in Specialty Cellulose Market Pulp Industry: 77 MMT RYAM is Focused on the Specialty End of the Spectrum % OF ENTERPRISE AVERAGE SALES PRICE (1) ESTIMATED MARKET POSITION SALES (1) 1.6 Specialty Cellulose 48% $1,639 Per MT RYAM 37% Other Specialty Cellulose Producers 63% MMT RYAM
Slide 23: RYAM is the Leader: Highly Specialized Mix
RYAM is the Leader: Highly Specialized Mix HIGHLY SPECIALIZED SALES MIX Specialty Cellulose Commodity Viscose 600 2,000 1,800 500 Bracell 1,600 1,400 400 000S TONNES 1,200 300 1,000 800 APRIL 200 600 400 100 200 0 0 RYAM Cotton Bracell GP Borregaard Others Birla Sappi RGE Sappi Lenzing Birla Sun Pap
Slide 24: RYAM is the Leader: Capabilities
RYAM is the Leader: Capabilities MARKET LEADER IN SPECIALTY CELLULOSE Acetate Breadth of Product Offering Ethers Other CS Diversity of End Markets Technical Product Development Global Manufacturing Footprint ESG Metrics RYAM boasts five CS-capable production lines and a century of expertise, deliver
Slide 25: Cellulose Specialties: Overview
Cellulose Specialties: Overview TOP 5 CELLULOSE SPECIALTIES END MARKETS ⎔ Filter Tow: Stable (-1-0%) 2022 REVENUE – Stable market with broad global exposure ⎔ Food/Pharmaceuticals/Personal Care: Growing (2-3%) 8% 11% – Stable markets with growth driven by increases in 15% 9% 36% medication and deman
Slide 26: Realignment of HPC Assets
Realignment of HPC Assets OPTIMIZING PRODUCTION MIX Today(1) Tomorrow(2) Temiscaming ⎔ ~25% Cellulose Specialties 100% Commodity ⎔ ~75% Commodity Fernandina ⎔ ~65% Cellulose Specialties 100% Cellulose Specialties ⎔ ~35% Commodity Tartas 100% Cellulose Specialties 100% Cellulose Specialties Jesup ⎔ A
Slide 27: Future Supply and Demand Dynamic
Future Supply and Demand Dynamic MARKET TIGHTENS WITH GP FOLEY CLOSURE Reflects 150k MT reduction from GP Foley closure Shipment to Capacity 87% 87% 81% 85% 84% 79% 88% 91% 91% 93% Ratio(1) 1.6 Global Demand 22E - 27E is ~GDP 1.4 0.2 0.2 0.2 0.2 MILLIONS OF TONNES (2) 0.3 0.3 0.2 1.2 1.0 0.8 1.3 1.3
Slide 28: CS Pricing History
CS Pricing History CAPACITY ADDITIONS AND SUBTRACTIONS New RYAM Management & Commercial Approach ⎔ Capacity $2,500 Short Supply Long Supply Industry Analysts’ – With GP Foley closure, Consensus Forecast we estimate a ~150k MT $2,000 Weyerhaeuser reduction in CS market supply closes Cosmo, WA USD/ MT
Slide 29: Key Takeaways
Key Takeaways WE ARE OPERATING THE BUSINESS DIFFERENTLY ⎔ RYAM's Unique Market Position: Global market leadership position, RYAM is the sole industry player with multiple production lines across different continents supporting strong pricing throughout the cycle ⎔ Barriers to Entry and Industry Stru
Slide 30: Biomaterials
Biomaterials CHRISTIAN RIBEYROLLE VP, BIOMATERIALS AND PRESIDENT, FRANCE BUSINESS
Slide 31: Key Messages - Biomaterials
Key Messages - Biomaterials Uniquely positioned in a fast-growing market where RYAM can execute in capacity-constrained markets and enjoy a coveted first-quartile cost position for biomaterials Minimal technology and market risk as production technology already exists and demand is expected to excee
Slide 32: RYAM – Biomaterials
RYAM – Biomaterials CREATING SPECIALTY BIOMATERIALS THROUGH EXPANSION OF EXISTING FACILITIES Take Advantage ⎔ ~40% of wood input used to produce High Purity THE TIME IS RIGHT… Cellulose products Today’s sustainability drivers are real ⎔ RYAM plans to utilize the full value of remaining EU Green Deal
Slide 33: Leading R&D Platform
Leading R&D Platform BIOMATERIALS OPPORTUNITY 40% of Wood Dry Solid Recycle RYAM’s Core Business Water Chemicals Cellulose Specialties Anomera Nanocrystals Energy Viscose Working Forest Fluff Lyocell RYAM’s BioFuture Lignin Lignosulfonates Wood Biofuels Hemi-Cellulose/Sugars Externally Prebiotics So
Slide 34: RYAM – Biomaterials Wood Components
RYAM – Biomaterials Wood Components RYAM’s Existing Business Biomaterials • Cellulose (30-50%) • HPC • Cellulose Nano Crystals (CNC) • Fluff • Cellulose Microbeads • Lyocell • Viscose • Hemi-Cellulose/Sugars (20-30%) • Bioethanol • Prebiotics • SAF • Lignin (20-35%) • Bioenergy • Lignosulphonate • L
Slide 35: Biomaterials Portfolio
Biomaterials PORTFOLIO 1 PORTFOLIO 2 PORTFOLIO 3 Projects currently in progress Projects in R&D stage Early-stage pipeline BIOENERGY • 2nd Gen Bioethanol – Tartas • Altamaha Green Energy (AGE) – • Bioenergy from HCE – Tartas • 2nd Gen Bioethanol – Fernandina Jesup • Crude Tall Oil (CTO) – Tartas • S
Slide 36: Biomaterials: Portfolio Financials
Biomaterials: Portfolio 1 Financials PORTFOLIO 1 HIGHLIGHTS ⎔ Exciting portfolio with exceptional returns – Portfolio 1 is expected to return $42M in EBITDA Tartas, France Commencement early 2024 and $100M in revenue by 2027 Fernandina, USA ⎔ Capex requirements of $100 Million Tartas, France (Liquid
Slide 37: Biomaterials: Portfolio
Biomaterials: Portfolio 1 PRODUCT BIOETHANOL LIGNOSULPHONATE CRUDE TALL OIL PREBIOTICS MARKETS Biofuel (RED 2) Construction, crop Biofuel Animal Feed protection, plant nutrition and other industries PROJECTS Tartas, France Tartas, France Fernandina/Jesup, USA Jesup, USA Fernandina, USA Temiscaming,
Slide 38: Biomaterials: Bio Ethanol
Biomaterials BIO ETHANOL Sustainable wood Biorefinery Fermentation Bioethanol Biofuel (red 2) distillation plant shipped to client 90% lower GHG footprint vs. Fossil fuels • No competition with food industry • No utilization of new agricultural soil Timeline Tartas Bioethanol is expected to be opera
Slide 39: Biomaterials: Portfolio
Biomaterials: Portfolio 2 PRODUCT CARBOXYLATED GREEN ENERGY LIGNOSULFONATES SUSTAINABLE BIOETHANOL NANOCELLULOSE AVIATION FUEL PREBIOTICS (NANO CRYSTAL) (SAF) PROTEINS (MICROBEADS) MARKETS Cosmetics Green Electricity Industrial Products Sustainable Fuel Sustainable Fuel Industrial Products Animal fe
Slide 40: Key Takeaways
Key Takeaways A TRANSFORMATIVE GROWTH OPPORTUNITY FOR RYAM ⎔RYAM's Biomaterials business presents significant growth opportunities ⎔RYAM has a finance plan in place with minimal cash draw from the parent company ⎔Biomaterials offer high margins, revenue growth, and exciting new products ⎔Phase I of
Slide 41: Paperboard & High-Yield Pulp
Paperboard & High- Yield Pulp KEN DUFFY VP, PAPERBOARD AND HIGH-YIELD PULP SALES
Slide 42: Key Messages - Paperboard & High-Yield Pulp
Key Messages - Paperboard & High-Yield Pulp Unique product offerings compared to other regional suppliers as RYAM is the sole supplier of folding box board in North America and one of two suppliers globally producing high-yield pulp from Maple Strong market potential with growth being driven by dema
Slide 43: Paperboard & High-Yield Pulp Overview
Paperboard & High-Yield Pulp Overview Paperboard High-Yield Pulp Location ⎔ Temiscaming, Quebec ⎔ Temiscaming, Quebec Capacity ⎔ 180k MT ⎔ 290k MT (2 lines of production) – 65k MT sold internally to Paperboard Key Raw ⎔ 80-90k MT of NBHK & NBSK Pulp ⎔ Hardwood (Maple & Aspen) Materials ⎔ Chemicals ⎔
Slide 44: RYAM Advantages
RYAM Advantages NICHE PLAYER WITH BULKY ATTRIBUTES ⎔Higher surface-to-weight paperboard - capable of producing a lighter paperboard, while maintaining caliper and print quality ⎔Product positioning - North America’s leading paperboard supplier in the scratch-and-win lottery segment ⎔Highest bulk hig
Slide 45: Paperboard & High-Yield Financials
Paperboard & High-Yield Financials REVENUES ($ Millions) EBITDA ($ Millions) Paperboard High-Yield Pulp $160 $184 $28 $19 $136 $128 $125 $3 $10 $250 $53 $52 $240 $5 $200 $190 $208 $33 $28 $22 2019 2020 2021 2022 Q2'23 LTM 2019 2020 2021 2022 Q2'23 LTM 46
Slide 46: Paperboard & High-Yield Pulp Value Chain
Paperboard & High-Yield Pulp Value Chain PAPERBOARD HIGH-YIELD PULP Other Canada 32% India 30% 28% RYAM 2022 RYAM 2022 SALES BY United SALES BY GEOGRAPHY States GEOGRAPHY 70% Europe China 20% 20% RYAM RYAM ~4% MARKET ~4% MARKET SHARE SHARE 4.5 MMT Market 4.6 MMT Market 47
Slide 47: High-Yield Pulp & Paperboard Price Dynamics
High-Yield Pulp & Paperboard Price Dynamics Paperboard & HYP Price $1,800 Market Dynamics $1,600 ⎔ New capacity coming in 2025-27 will temporarily lower prices for ~6 months in 2026, but will easily be $1,400 absorbed due to strong market growth $1,200 ⎔ Government mandates may continue to accelerat
Slide 48: Key Takeaways
Key Takeaways SUSTAINABLE TRENDS DRIVING GROWTH ⎔ Strong Contributors with Favorable Prospects: Paperboard provides robust EBITDA contributions, while high-yield pulp exhibits cyclicality, with low capital needs and promising growth potential ⎔ Challenges and Opportunities in the Market: Despite H2
Slide 49: Operations Presentation
Operations Presentation MICHAEL OSBORNE VP, MANUFACTURING OPERATIONS
Slide 50: Key Messages - Operations
Key Messages - Operations Improve Asset Reliability with a proactive strategy on improving asset performance through managing and tracking KPIs like Overall Equipment Effectiveness (OEE) to improve fixed cost absorption and capacity utilization Cost Improvements with a focus on automation projects t
Slide 51: RYAM - Plant Portfolio
RYAM - Plant Portfolio BENEFITS FROM A WORLD CLASS PRODUCTION FOOTPRINT JESUP FERNANDINA TARTAS TEMISCAMING Location Jesup, Georgia Fernandina Beach, Florida Tartas, France Temiscaming, Quebec United States United States Canada Primary Other CS (Line A) Acetate Ethers Other CS, Viscose & Lyocell Ble
Slide 52: Maintenance & Reliability Journey
Maintenance & Reliability Journey Enterprise/Plant Led LEAN MANUFACTURING FOCUS ON ELIMINATING WASTE Lean State LOSS ELIMINATION OEE LOSS ELIMINATION Maintenance Driven Proactive State FIX BEFORE BREAK Planned State FIX AFTER BREAK • Predictive Tools Reactive State STAGED DECAY • Leadership Regressi
Slide 53: Improve Cost Position
Improve Cost Position FERNANDINA PLANT EXAMPLE ⎔ Enhancing Fernandina Plant's competitive position necessitates cost improvements, and our focused strategy involves investment in automation to enhance efficiency and reduce overall expenses ⎔ Plan for Fernandina over the next 5 Years – Improve EBITDA
Slide 54: Manufacturing Center of Excellence
Manufacturing Center of Excellence ⎔ Go Where the Work Needs Exist ⎔ Provide Key Networking to Make Sure Global Leader Best Practices Are Shared/Expected ⎔ Drive Improve Plant Fundamentals Global Process Global Project Global Process Global Reliability Technology Engineering Automation ⎔ Members Are
Slide 55: Purpose of Manufacturing Center of Excellence
Purpose of Manufacturing Center of Excellence Drive ⎔ Ensures everyone is speaking the same language – more efficient and effective Consistency communication ⎔ Everyone is held to a consistent set of standards ⎔ Allows for better measurement of outcomes and comparisons of performance across plants (
Slide 56: Sustainability
Sustainability BEN CHAMBERS DIRECTOR, SUSTAINABILITY & EXTERNAL AFFAIRS
Slide 57: Key Messages - Sustainable From the Start
Key Messages - Sustainable From the Start Working Forests play an essential role in supporting the economy, environment, and society, providing critical ecosystem services in addition to the over five thousand products derived from trees. RYAM’s Recent ESG Disclosures have added key information abou
Slide 58: The Benefits of a Working Forest
The Benefits of a Working Forest ⎔ Working Forests Defined: A working forest, characterized by responsible stewardship, is a meticulously managed forest that generates revenue from various Sustainable sources, including sustainable timber and ecosystem services Working Forest ⎔ Benefits of Working F
Slide 59: Renewable, Sustainable Raw Materials, Natural Products
Renewable, Sustainable Raw Materials, Natural Products Raw Materials Processes Products ⎔ Wood is sourced from sustainable ⎔ >78% of total energy needs met ⎔ Sustainable products supporting working forests using renewable sources customer’s decarbonization goals ⎔ 36% of RYAM’s input fiber is FSC or
Slide 60: A Focus on People and Governance
A Focus on People and Governance Social Initiatives Governance RYAM Board Board Sustainability Committee ⎔ In 2022, RYAM had a 14% increase ⎔ 89% independent board members, in women holding executive with 67% director refreshment in Chief Executive Officer leadership positions the past 5 years ⎔ 72%
Slide 61: Key Takeaways
Key Takeaways PROMOTING A SUSTAINABLE WORLD ⎔RYAM’s business has been sustainable from the start, which provides a unique opportunity in today’s sustainability-conscious world. We transform renewable resources into remarkable solutions that promote a sustainable world ⎔Working Forests represent a cr
Slide 62: Financial Overview
Financial Overview MARCUS MOELTNER CHIEF FINANCIAL OFFICER AND SVP, FINANCE
Slide 63: Key Messages
Key Messages BALANCE SHEET OPTIMIZATION DRIVES SUCCESS Strengthen the balance sheet with a commitment to refinancing near-term maturities in 2024 and paying down debt further Operate business differently to maximize profitability with a focus on higher and less volatile margins Fund Biomaterial grow
Slide 64: The Pathway to Address Capital Structure
The Pathway to Address Capital Structure FOCUS ON REFINANCING NEAR-TERM MATURITIES ⎔ Target to refinance 2026 Notes in 2024: Proforma Amount as of Q2 2023 Maturity – Reduce debt by ~$70M through free cash flow and monetize ABL - Dec-25 passive assets Sr Secured Notes 465 Jan-26 – Flexibility to refi
Slide 65: RYAM Financial Framework
RYAM Financial Framework PRUDENT BALANCE SHEET MANAGEMENT IS THE FOUNDATION OF ALL SUCCESS ⎔ Strong Cash Generation – Cash flow ensures flexibility to repay debt, make attractive strategic investments, and withstand market downturns ⎔ Debt Paydown Cash Debt – Focus on debt reduction enhances financi
Slide 66: Biomaterials: Financing Strategy
Biomaterials: Financing Strategy FINALIZING FUNDING FOR ATTRACTIVE BIOMATERIALS PORTFOLIO ⎔ Low-cost green loans offer an attractive path forward – Tartas Bioethanol primarily financed through green loans with interest rates below 2% – Similar government programs are available for other projects in
Slide 67: Business Overview
Business Overview ENTERPRISE REVENUE AND EBITDA REVENUES ($ Millions) 2022 Revenue by Product $1,818 Cellulose Specialties $1,717 8% Fluff $1,431 $1,408 15% Biomaterials / Other $1,344 Paper Pulp / Other 3% 50% Viscose 5% Paperboard 7% High-Yield Pulp 12% 2019 2020 2021 2022 Q2'23 LTM EBITDA ($ Mill
Slide 68: RYAM – Leverage Profile
RYAM – Leverage Profile REDUCING NET LEVERAGE VIA EBITDA GROWTH & DEBT REDUCTION 12.5x 18.0% 16% 16.0% 10.0x 14% 10.0x 14.0% Net Debt/Adjusted EBITDA 11.1% 12.0% 7.5x 10.3% EBITDA MARGIN 10.0% 9.0% 5.4x 7.4% 8.0% 5.0x 4.0x 6.0% $1,095 3.4x $937 $859 < 2.5x 4.0% 2.5x $839 $700 2.0% 0.0x 0.0% 2020 Act
Slide 69: 2023 Financial Update
2023 Financial Update ONGOING CHALLENGES PERSIST IN Q3 WITH IMPROVING OUTLOOK FOR Q4 ⎔ Anticipating Q3 to be lower than Q2; primary focus remains on Cash Flow and debt management for 2023: – Proactively managing cash flow and net debt levels to ensure covenant cushion is maintained – Full-year guida
Slide 70: RYAM's Compelling Proposition
RYAM’s Compelling Proposition STABLE CORE & EMERGING BIOMATERIALS DRIVING EBITDA GROWTH Existing Business • Margin Expansion HIGHLIGHTS • Supply/Demand Balance • Reduced Commodity Exposure Stable Core CS Business Strong product mix with diverse end-markets Biomaterials Phase 1 ~1% CAGR Appealing Gro
Slide 71: Final Thoughts
Final Thoughts DE LYLE BLOOMQUIST PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 72: Key Takeaways
Key Takeaways ADDRESSING CONCERNS TO DRIVE VALUE ⎔ Plan to address balance sheet: – Reduce gross debt balance by over $70 million through Free Cash Flow generation and passive asset sales – Potential to sell noncore assets to further reduce debt – Demonstrate earnings power of business with greater
Slide 73: Appendix
Appendix
Slide 74: Biomaterials: Crude Tall Oil
Biomaterials CRUDE TALL OIL Sustainable wood Biorefinery Hydrolysis of CTO shipping Biodiesel TOS in CTO to client production 100% biobased; not genetically modified • Source: sustainably managed forests • No utilization of new agricultural soil 76
Slide 75: Biomaterials: Prebiotics
Biomaterials PREBIOTICS Sustainable wood Biorefinery Prebiotic plant Shipping to client Animal food additive Natural antibiotic replacement • Bolster animal immunity/kill pathogens • Enhance feed efficiency and animal growth 77
Slide 76: Biomaterials: Lignosulphonates
Biomaterials LIGNOSULPHONATES Sustainable wood Biorefinery Lignosulphonate Shipping to client Applications in construction, crops, (Liquid + Powder) plants + Renewable alternatives to chemicals • Source: sustainably managed forests • No utilization of new agricultural soil 78
Rayonier Advanced Materials — Investor Day (October 2023) on 6ix