Sylvamo Corporation · NYSE:SLVM

Sylvamo — 2023 Bank of America Global Agriculture and Materials Conference

21 slides from Sylvamo's conference presentation, Mar 2, 2023

  1. Slide 1: Investor Update

    1 Investor Update 2023 Bank of America Global Agriculture and Materials Conference March 2, 2023 © 2023 Sylvamo Corporation. All rights reserved.

  2. 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

  3. 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

  4. Slide 4: We are executing on our Investment Thesis

    We are executing on our Investment Thesis 4 The World’s Paper Company We are the world’s paper company, the employer, supplier and investment of choice We believe in the promise of paper and are confident in our ability to create long-term value for shareowners. Our Three-pronged Strategy Commercial

  5. Slide 5: We have created substantial shareowner value since the spinoff

    We have created substantial shareowner value since the spinoff 5 • >$500 million (35%) debt reduction Maintain Strong • Improved gross debt-to-adjusted EBITDA from 3.2x to 1.4x Financial Position • <$1 billion gross debt • Paid $21 million in cash dividends Return Cash • Repurchased 1.8 million shar

  6. Slide 6: We are well-positioned to create additional shareowner value in 2023

    We are well-positioned to create additional shareowner value in 2023 6 2023 Outlook $ Million Adjusted EBITDA Free Cash Flow $760 - $840 $300 - $330 • Slightly favorable price & mix vs. input costs • Relatively stable volume • Energy, input and transportation costs trending favorably • Higher planne

  7. Slide 7: We will continue to execute on our Investment Thesis

    We will continue to execute on our Investment Thesis 7 A Simple, Focused Plan We focus on uncoated freesheet and will create long-term value through: • Talented teams • Iconic brands • Low-cost mills in favorable locations A Cash Flow Story We leverage our strengths to drive high returns on invested

  8. Slide 8: Appendix

    8 Appendix © 2023 Sylvamo Corporation. All rights reserved.

  9. Slide 9: UFS Industry Fundamentals

    UFS Industry Fundamentals 9 Western Europe Latin America North America Demand Growth (2%) +19% +5% (2022 vs. 2021) Imports +7% (13%) +11% (2022 vs. 2019) Capacity Change (20%) (10%) (21%) (2022 vs. 2019) Source: Pulp and Paper Products Council - Imports as of November YTD for Western Europe; Capacit

  10. Slide 10: Global uncoated freesheet demand continued to recover

    Global uncoated freesheet demand continued to recover 10 UFS Industry Demand 2021 2022 Western Europe 6% (2%) Latin America 14% 19% North America 4% 5% Sylvamo Regions 6% 5% Global 3% Flat Source: Pulp and Paper Products Council © 2023 Sylvamo Corporation. All rights reserved.

  11. Slide 11: Capital Deployment

    Allocating cash to drive shareowner value 11 Maintain Strong Fortified balance sheet Financial Position Dividends Return Cash Capital to Shareowners Opportunistic share repurchases Deployment Maintain low-cost assets Reinvest in High-return projects Our Business Opportunistic bolt-ons © 2023 Sylvamo

  12. Slide 12: Reinvesting in our assets and strengthening our businesses

    Reinvesting in our assets and strengthening our businesses 12 2023 Capital Spending Outlook • Key Drivers of the Increase $ Million • in Capital Spending • 2023 vs. 2022 Maintenance & Regulatory $145 - $155 • Addition of Nymolla including one-time costs Brazil Forestry $30 - $35 • Delayed 2022 maint

  13. Slide 13: Addressing the $90 million restricted payments limit in the notes agreement

    Addressing the $90 million restricted payments limit in the notes agreement 13 • Launched a tender offer and consent solicitation to purchase our 7% 2029 notes in order to enable increased cash returns to shareowners • Purchasing >50% of outstanding notes will eliminate restrictive covenants in the

  14. Slide 14: Addressing the $90 million restricted payments limit in the notes agreement

    Addressing the $90 million restricted payments limit in the notes agreement 14 February 22 Tender Offer Launch Early Tender Date March 7 Investors who tender on or before this date will be paid 100% of par Early Settlement Date ~March 9 Purchase the notes tendered by March 7 Tender Expiration March

  15. Slide 15: Also addressing the $90 million restricted payments limit in the credit agreement

    Also addressing the $90 million restricted payments limit in the credit agreement 15 • The credit agreement requires a cash deposit to eliminate its restricted payments limit • Upon success of the tender offer, we may pursue one of two options: 1. Deposit $60 million in escrow and maintain $225 mill

  16. Slide 16: Free Cash Flow Reconciliation

    Free Cash Flow Reconciliation 16 2023 $ Million 2022 Outlook Cash from Continuing Operations $418 $510 - $565 Cash Invested in Capital Projects ($149) ($210) - ($235) Free Cash Flow $269 $300 - $330 Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided b

  17. Slide 17: Adjusted EBITDA and Margin Reconciliation

    Adjusted EBITDA and Margin Reconciliation 17 $ Million 2022 FY 2023 Net Income (Loss) $118 Outlook Less: Discontinued operations, net of tax (218) Net Income From Continuing Operations $336 $368 - $420 Depreciation, Amortization, Cost of Timber Harvested 125 146 Interest (Income) Expense, Net 69 50

  18. Slide 18: Adjusted Operating Earnings per Share Reconciliation

    Adjusted Operating Earnings per Share Reconciliation 18 $ Million 2022 Net Income (Loss) $118 Less: Discontinued operations, net of tax (218) Net Income From Continuing Operations $336 Special Items Expense (Income) 12 Adjusted Operating Earnings $348 Adjusted Operating Earnings per Share $7.84 Adju

  19. Slide 19: 2022 Return on Invested Capital Reconciliation

    2022 Return on Invested Capital Reconciliation 19 $ Million 2021 2022 Net Income From Continuing Operations $336 Special Items Expense (Income) 12 Interest (Income) Expense, Net 69 Adjusted Operating Earnings Before Interest $417 Total Equity $182 $678 Add: Long-Term Debt 1,357 1,003 Add: Notes paya

  20. Slide 20: Contacts

    Contacts 20 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 © 2023 Sylvamo Corporation. All rights reserved.

  21. Slide 21: Building a better future for people, the planet and our company

    21 Building a better future for people, the planet and our company © 2023 Sylvamo Corporation. All rights reserved.

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