Sylvamo Corporation · NYSE:SLVM
Sylvamo — Q4 2024 Earnings Presentation
55 slides from Sylvamo's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
1 Fourth Quarter and Full Year 2024 Earnings February 12, 2025 © 2025 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 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: Generated 23% Return on Invested Capital in 2024
Generated 23% Return on Invested Capital in 2024 4 • Repaid $154 million in debt Improving our • Achieved net debt-to-adjusted EBITDA of 0.9x Financial Position • Received $60 million from escrow • Earned $632 million in Adjusted EBITDA (17% Margin) Delivering on our • Generated $248 million in Free
Slide 5: 2024 Key Financial Metrics
2024 Key Financial Metrics 5 Adjusted EBITDA Free Cash Flow Adjusted Operating and Margin Earnings per Share $721 $294 $7.84 $632 $269 $7.42 $607 $248 $6.51 20% 16% 17% 2022 2023 2024 2022 2023 2024 2022 2023 2024 Adjusted EBITDA and Free Cash Flow figures are in $ millions © 2025 Sylvamo Corporatio
Slide 6: 4Q24 Highlights
4Q24 Highlights 6 • Strong cash generation • Successful Georgetown mill transition • Exceeded Project Horizon exit rate target by $34 million © 2025 Sylvamo Corporation. All rights reserved.
Slide 7: 4Q24 Key Financial Metrics
4Q24 Key Financial Metrics 7 Adjusted EBITDA Free Cash Flow Adjusted Operating and Margin Earnings per Share $193 $2.44 $157 $1.96 $119 $117 $104 $100 $1.16 12% 20% 16% 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Adjusted EBITDA and Free Cash Flow figures are in $ millions © 2025 Sylvamo Corporatio
Slide 8: 4Q24 Adjusted EBITDA in line with our Outlook
4Q24 Adjusted EBITDA in line with our Outlook 8 4Q24 vs. 3Q24 $ Million 4Q24 Outlook ($20) - ($25) $15 - $20 ($5) - $0 ($17) ($5) - ($10) $150 - $165 (Nov 12, 2024) $193 ($18) $6 $2 ($17) ($9) $157 20% 16% 3Q24 Price & Mix Volume Operations and Maintenance Input and 4Q24 Other Costs Outages Transpor
Slide 9: Exceeded our $110 million Project Horizon exit rate cost reduction target
Exceeded our $110 million1 Project Horizon exit rate cost reduction target 9 •2024 exit rate of $144 million, surpassing target by $34 million $ Million $61 Target Manufacturing $80 Delivered • >180 manufacturing initiatives implemented, reducing fiber, chemicals, energy and fixed costs $19 Supply C
Slide 10: High-return projects delivering positive results
High-return projects delivering positive results 10 Luis Antonio Mill - Latin America Increasing Internal Power Generation • Upgraded one of our turbine generators to increase internal power generation capabilities • ~$7 million investment with ~25% IRR • Started up 3Q 2024 Production Waste Optimiza
Slide 11: 1Q25 Adjusted EBITDA Outlook: $85 - $105 Million
1Q25 Adjusted EBITDA Outlook: $85 - $105 Million 11 1Q25 vs. 4Q24 $ Million Paper price decreases in Europe and exports regions, Price and Mix Unfavorable: ($10) - ($15) seasonally unfavorable mix in Latin America Seasonally weakest demand quarter in Latin America and Volume Unfavorable: ($20) - ($2
Slide 12: Current industry conditions
Current industry conditions 12 • Improving order books Europe • Industry capacity reduced in 2H24 • Pulp and UFS prices stabilizing • Seasonally weaker demand in first quarter Latin • Brazil UFS price increases communicated to customers America • Export UFS prices under pressure • Slightly lower dem
Slide 13: Allocated >$1.8 billion in cash since becoming an independent company
Allocated >$1.8 billion in cash since becoming an independent company 13 $347 million in cash returned to $1.84 Billion shareowners $167 $129 Debt Repayment $724 $218 Capex Share Repurchases Dividends $602 Nymolla Acquisition (Jan 2023) $ Million All figures reflect our performance as an independent
Slide 14: Reinvesting in our low-cost assets
Reinvesting in our low-cost assets 14 Capital Spending 2025 2023 2024 $ Million Outlook Maintenance & Regulatory $143 $138 ~$125 Brazil Reforestation $34 $36 ~$35 Brazil Third-party Wood Supply - $20 $10 Agreement High-return Projects $33 $27 ~$50 - $70 Total $210 $221 $220 - $240 © 2025 Sylvamo Cor
Slide 15: Investing in the future of our Flagship North America mill - Eastover, SC
Investing in the future of our Flagship North America mill - Eastover, SC 15 Reducing costs while improving efficiency and mix of the most competitive North America UFS mill 2025 2026 2027 Paper Machine >30% Optimization IRR ~$145 million Capital Investment New Replacement >$50 million Cutsize Sheet
Slide 16: Investing in the future of our Flagship North America mill - Paper Machine
Investing in the future of our Flagship North America mill - Eastover, SC 16 Paper machine optimization enabling cost reduction while improving overall product mix • Investments across the machine allow for speed up • Enhances paper mix and flexibility across the machines • Incremental ~60 thousand
Slide 17: Investing in the future of our Flagship North America mill - Sheeter
Investing in the future of our Flagship North America mill - Eastover, SC 17 New state-of-the-art cutsize sheeter lowering costs, increasing efficiency and sheeting capacity • New and more efficient cutsize sheeter replacing an existing sheeter • Lowering costs, maximizing paper machine trim and pro
Slide 18: Investing in the future of our Flagship North America mill - Woodyard
Investing in the future of our Flagship North America mill - Eastover, SC 18 Improving Woodyard efficiency through innovative modernization • 20-Year partnership with external operator • Increasing reliability by replacing our aging equipment • More efficient, reliable and cost-effective wood proces
Slide 19: ~150% Total Shareowner Return since becoming an independent company
~150% Total Shareowner Return since becoming an independent company 19 • Reduced gross debt by $724 million (48%) to $796 million Improving our • Achieved net debt-to-adjusted EBITDA of 0.9x Financial Position • Reduced risk with Russian business divestiture in 2022 • Earned $2.1 billion in Adjusted
Slide 20: Confident in our future and motivated by opportunities that lie ahead
Confident in our future and motivated by opportunities that lie ahead 20 • Reinvesting in our businesses to increase earnings and cash flows • Optimizing to become leaner and more agile to drive earnings growth • Creating shareowner value through cash generation and disciplined capital allocation Ea
Slide 21: Appendix
21 Appendix © 2025 Sylvamo Corporation. All rights reserved.
Slide 22: Contacts
Contacts 22 Hans Bjorkman Vice President, Investor Relations Investor Relations +1-901-519-8030 hans.bjorkman@sylvamo.com Adam Ghassemi Director, Corporate Communications Media +1-901-519-8115 adam.ghassemi@sylvamo.com © 2025 Sylvamo Corporation. All rights reserved.
Slide 23: Selected Annual Financial Guidance
Selected Annual Financial Guidance 23 2024 2025 $ Million Actual Outlook Total Maintenance Outage Costs $73 $112 Maintenance & Regulatory $138 ~ $125 Brazil Reforestation $56 ~ $45 Capital Spending High-return Projects $27 ~ $50 - $70 Total $221 $220 - $240 Depreciation & Amortization $159 $179 Net
Slide 24: 2024 Return on Invested Capital Reconciliation
2024 Return on Invested Capital Reconciliation 24 $ Million 2023 2024 Net Income From Continuing Operations $302 Special Items Expense (Income) 10 Interest (Income) Expense, Net 39 Adjusted Operating Earnings Before Interest $312 $351 Total Equity $901 $847 Add: Long-Term Debt 931 782 Add: Notes pay
Slide 25: 0.9x Net Debt-to-Adjusted EBITDA - December 31, 2024
0.9x Net Debt-to-Adjusted EBITDA - December 31, 2024 25 Gross Debt $ Million $1,520 $1,397 $1,026 $950 $796 Initial Gross Debt at Dec 21 Dec 22 Dec 23 Dec 24 Spinoff Notes Term Loan F Term Loan F 2 Term Loan B Term Loan A AR Securitization 1.3x Gross Debt-to-Adjusted EBITDA as of December 31, 2024 N
Slide 26: Debt Maturity Profile
Debt Maturity Profile 26 December 31, 2024 $ Million $368 $189 $161 $20 $23 $23 $12 2025 2026 2027 2028 2029 2030 2031 Term Loan F AR Securitization Term Loan A Term Loan F 2 Debt maturity profile includes anticipated minimum amortization payments by year © 2025 Sylvamo Corporation. All rights reser
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 27 $ Million 4Q23 3Q24 4Q24 2023 2024 Cash from Continuing Operations $167 $163 $164 $504 $469 Cash Invested in Capital Projects ($63) ($44) ($64) ($210) ($221) Free Cash Flow $104 $119 $100 $294 $248 Free cash flow is a non-GAAP measure and the most directly comparable
Slide 28: Free Cash Flow Reconciliation - Since Spinoff
Free Cash Flow Reconciliation - Since Spinoff 28 Since $ Million 4Q21 2022 2023 2024 Spinoff Cash from Continuing Operations $131 $418 $504 $469 $1,522 Cash Invested in Capital Projects ($22) ($149) ($210) ($221) ($602) Free Cash Flow $109 $269 $294 $248 $920 © 2025 Sylvamo Corporation. All rights r
Slide 29: 4Q24 vs. 3Q24 Free Cash Flow
4Q24 vs. 3Q24 Free Cash Flow 29 $ Million 3Q24 4Q24 Variance Adjusted EBITDA $193 $157 ($36) Cash Taxes ($18) ($40) ($22) Cash Interest ($13) ($10) $3 Cash Special Items ($5) ($2) $3 Other Changes in Working Capital $6 $59 $53 Cash Provided by Operating Activities $163 $164 $1 Capital Spending ($44)
Slide 30: 4Q24 vs. 4Q23 Free Cash Flow
4Q24 vs. 4Q23 Free Cash Flow 30 $ Million 4Q23 4Q24 Variance Adjusted EBITDA $117 $157 $40 Cash Taxes ($29) ($40) ($11) Cash Interest ($14) ($10) $4 Cash Special Items ($9) ($2) $7 Other Changes in Working Capital $102 $59 ($43) Cash Provided by Operating Activities $167 $164 ($3) Capital Spending (
Slide 31: Free Cash Flow by Quarter - Since Spinoff
Free Cash Flow by Quarter - Since Spinoff 31 $ Million $155 $114 $119 $109 $104 $100 $84 $62 1Q 2Q $39 $32 $33 3Q 4Q $2 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 ($33) © 2025 Sylvamo Corporation. All rights reserved.
Slide 32: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 32 1Q25 $ Million 4Q23 3Q24 4Q24 2023 2024 Outlook Net Income (Loss) $49 $95 $81 $253 $302 $20 - $34 Depreciation, Amortization, Cost of Timber Harvested 38 39 44 143 159 43 Interest (Income) Expense, Net 6 14 7 34 39 8 Income Tax Provision 18 37 19 116 103
Slide 33: Adjusted EBITDA Reconciliation - Since Spinoff
Adjusted EBITDA Reconciliation - Since Spinoff 33 Since $ Million 4Q21 2022 2023 2024 Spinoff Net Income from Continuing Operations $29 $336 $253 $302 $920 Depreciation, Amortization, Cost of Timber Harvested 31 125 143 159 458 Interest (Income) Expense, Net 18 69 34 39 160 Income Tax Provision 28 1
Slide 34: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 34 $ Million 4Q23 3Q24 4Q24 2023 2024 Adjusted EBITDA Europe (16) 11 14 7 47 Latin America 67 69 70 271 228 North America 66 113 73 329 357 Total Business Segment Adjusted EBITDA $117 $193 $157 607 632 Net Sales (excluding Inter-segment Sales eliminations) E
Slide 35: Adjusted Operating Earnings per Share Reconciliation
Adjusted Operating Earnings per Share Reconciliation 35 $ Million 4Q23 3Q24 4Q24 2023 2024 Net Income (Loss) $49 $95 $81 $253 $302 Special Items Expense (Income) - $7 $1 $25 $10 Adjusted Operating Earnings $49 $102 $82 $278 $312 Adjusted Operating Earnings per Share $1.16 $2.44 $1.96 $6.51 $7.42 Adj
Slide 36: 2024 Financial Highlights
2024 Financial Highlights 36 2024 1Q 2Q 3Q 4Q FY 2024 Net Sales (Million) $905 $933 $965 $970 $3,773 Adjusted EBITDA (Million) $118 $164 $193 $157 $632 Adjusted EBITDA Margin 13% 18% 20% 16% 17% Adjusted Operating EPS $1.07 $1.98 $2.44 $1.96 $7.42 Free Cash Flow (Million) ($33) $62 $119 $100 $248 ©
Slide 37: Capacity by Grade
Capacity by Grade 37 000 Short Tons Uncoated Papers Market Pulp Total Nymolla 500 - 500 Saillat 265 130 395 Europe 765 130 895 Luis Antonio 385 130 515 Mogi Guacu 460 35 495 Tres Lagoas 260 - 260 Latin America 1,105 165 1,270 Eastover 700 115 815 Ticonderoga 275 - 275 North America 975 115 1,090 Syl
Slide 38: 4Q24 Sales Volume
4Q24 Sales Volume 38 Latin North 000 Short Tons Europe Sylvamo America America Uncoated Papers 166 298 375 839 Market Pulp 42 33 27 102 Total 941 Sales volume includes revenue recognition © 2025 Sylvamo Corporation. All rights reserved.
Slide 39: 2024 Sales Volume
2024 Sales Volume 39 Latin North 000 Short Tons Europe Sylvamo America America Uncoated Papers 658 1,050 1,450 3,158 Market Pulp 146 130 120 396 Total 3,554 Sales volume includes revenue recognition © 2025 Sylvamo Corporation. All rights reserved.
Slide 40: 2024 Economic Downtime
2024 Economic Downtime 40 000 Short Tons 1Q24 2Q24 3Q24 4Q24 2024 Europe - 13 27 8 48 Latin America - - - - - Paper North America 11 10 29 17 67 Total 11 23 56 25 115 Europe - 2 2 - 4 Latin America - - - - - Pulp North America - - - - - Total - 2 2 - 4 © 2025 Sylvamo Corporation. All rights reserved
Slide 41: 2023 - 2024 Economic Downtime
2023 - 2024 Economic Downtime 41 Thousand tons 185 150 61 27 98 23 56 124 58 123 2 75 25 25 2 56 11 23 25 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 UFS Pulp © 2025 Sylvamo Corporation. All rights reserved.
Slide 42: Total Maintenance Outage Costs - 2024
Total Maintenance Outage Costs - 2024 42 $ Million 1Q24 2Q24 3Q24 4Q24 2024 Europe - - $1 - $1 Latin America $11 $7 - - $18 North America $14 $22 - $18 $54 Total $25 $29 $1 $18 $73 Total maintenance outage costs (shown for Sylvamo mills only) include direct maintenance outage expense and related una
Slide 43: Total Maintenance Outage Costs - 2024
Total Maintenance Outage Costs - 2024 43 $ Million $73 1H24 74% $29 $25 $18 $1 1Q24 2Q24 3Q24 4Q24 2024 Europe Latin America North America Total maintenance outage costs (shown for Sylvamo mills only) include direct maintenance outage expense and related unabsorbed fixed costs © 2025 Sylvamo Corpora
Slide 44: Total Maintenance Outage Costs - 2025 Outlook
Total Maintenance Outage Costs - 2025 Outlook 44 2025 $ Million 1Q25 2Q25 3Q25 4Q25 Outlook Europe $14 $22 - - $36 Latin America $2 $16 $2 - $20 North America $17 $20 - $19 $56 Total $33 $58 $2 $19 $112 Total maintenance outage costs (shown for Sylvamo mills only) include direct maintenance outage e
Slide 45: Total Maintenance Outage Costs - 2025 Outlook
Total Maintenance Outage Costs - 2025 Outlook 45 $ Million $112 1H25 81% $58 $33 $19 $2 1Q25 2Q25 3Q25 4Q25 2025 Outlook Europe Latin America North America Total maintenance outage costs (shown for Sylvamo mills only) include direct maintenance outage expense and related unabsorbed fixed costs © 202
Slide 46: Quarterly Business Segment Operating Results
Quarterly Business Segment Operating Results 46 Sales D&A Adjusted EBITDA $ Million 4Q23 3Q24 4Q24 4Q24 4Q23 3Q24 4Q24 Europe $197 $194 $194 $9 ($16) $11 $14 Latin America $288 $247 $266 $22 $67 $69 $70 North America $496 $532 $514 $13 $66 $113 $73 Segment Total $981 $973 $974 $44 $117 $193 $157 Sum
Slide 47: Annual Business Segment Operating Results
Annual Business Segment Operating Results 47 Sales Adjusted EBITDA $ Million 2023 2024 2023 2024 Europe $821 $801 $7 $47 Latin America $1,006 $974 $271 $228 North America $1,951 $2,029 $329 $357 Segment Total $3,778 $3,804 $607 $632 Sum of Business Segment net sales will not tie with consolidated ne
Slide 48: 4Q24 vs. 4Q23 Adjusted EBITDA
4Q24 vs. 4Q23 Adjusted EBITDA 48 $ Million $10 ($17) $31 $157 $7 $9 $117 12% 16% 4Q23 Price & Mix Volume Operations Maintenance Input and 4Q24 and Costs Outages Transportation Costs © 2025 Sylvamo Corporation. All rights reserved.
Slide 49: Europe Adjusted EBITDA
Europe Adjusted EBITDA 49 4Q24 vs. 3Q24 $11 $1 ($2) $14 $11 ($7) $0 6% 7% 3Q24 Price & Mix Volume Operations Maintenance Input and 4Q24 and Costs Outages Transportation Costs $ Million 4Q24 vs. 4Q23 $6 ($1) $14 $22 ($16) 7% (8%) $2 $1 4Q23 Price & Mix Volume Operations Maintenance Input and 4Q24 and
Slide 50: Latin America Adjusted EBITDA
Latin America Adjusted EBITDA 50 4Q24 vs. 3Q24 $11 ($5) $69 ($3) $0 ($2) $70 28% 26% 3Q24 Price & Mix Volume Operations Maintenance Input and 4Q24 and Costs Outages Transportation $ Million Costs 4Q24 vs. 4Q23 $15 ($4) $4 ($13) $67 $1 9% $70 19% 23% 26% 4Q23 Price & Mix Volume Operations Maintenance
Slide 51: North America Adjusted EBITDA
North America Adjusted EBITDA 51 4Q24 vs. 3Q24 $113 ($8) ($5) ($4) ($18) ($5) $73 21% 14% 3Q24 Price & Mix Volume Operations Maintenance Input and 4Q24 and Costs Outages Transportation $ Million Costs 4Q24 vs. 4Q23 9% 19% $66 ($8) $10 $8 $0 ($3) $73 13% 14% 4Q23 Price & Mix Volume Operations Mainten
Slide 52: 4Q24 vs. 3Q24 Input Costs
4Q24 vs. 3Q24 Input Costs 52 Change By Region $ Million Europe Latin America North America ($2) ($2) ($5) 1 1 1 1 (2) (1) (4) (5) (1) Fiber Energy Transportation © 2025 Sylvamo Corporation. All rights reserved.
Slide 53: 2024 Delivered Cash Cost of Goods Sold
2024 Delivered Cash Cost of Goods Sold 53 Packaging 4% Energy 9% Fiber 26% Transportation 15% Woo d Chemicals Labor 15% 15% Fixed 16% Delivered cash cost of goods sold show Sylvamo mills only © 2025 Sylvamo Corporation. All rights reserved.
Slide 54: Executing on our Investment Thesis
Executing on our Investment Thesis 54 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 55: Building a better future for people, the planet and our company
55 Building a better future for people, the planet and our company © 2025 Sylvamo Corporation. All rights reserved.