Sylvamo Corporation · NYSE:SLVM
Sylvamo — Q1 2025 Earnings Presentation
39 slides from Sylvamo's earnings presentation, May 9, 2025
Slide 1: First Quarter 2025 Earnings
1 First Quarter 2025 Earnings May 9, 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: Jean-Michel Ribiéras, Chairman and CEO, will retire Dec. 31, 2025
Jean-Michel Ribiéras, Chairman and CEO, will retire Dec. 31, 2025 4 John Sims to become next CEO, effective January 1, 2026 • John Sims elected Chief Operating Officer (COO), effective May 1, 2025 • Will assume the role of Chief Executive Officer (CEO) on Jan. 1, 2026, following Ribiéras’s retiremen
Slide 5: 1Q25 Highlights
1Q25 Highlights 5 • Successfully executed heavy planned maintenance outage quarter • Impacted by operational challenges • Implementing previously communicated UFS price increases in Brazil and North America • Returned cash to shareowners Sumter, SC © 2025 Sylvamo Corporation. All rights reserved.
Slide 6: 1Q25 Key Financial Metrics
1Q25 Key Financial Metrics 6 Adjusted EBITDA Free Cash Flow Adjusted Operating and Margin Earnings per Share $157 $1.96 $100 $118 $90 $1.07 $0.68 1Q24 4Q24 1Q25 13% 16% 11% ($25) 1Q24 4Q24 1Q25 ($33) 1Q24 4Q24 1Q25 Adjusted EBITDA and Free Cash Flow figures are in $ millions © 2025 Sylvamo Corporati
Slide 7: 1Q25 Adjusted EBITDA in line with our Outlook
1Q25 Adjusted EBITDA in line with our Outlook 7 1Q25 vs. 4Q24 $ Million 1Q25 Outlook ($10) - ($15) ($20) - ($25) $0 - ($5) ($15) ($5) - ($10) $85 - $105 (Feb 12, 2025) $157 ($10) ($30) ($12) ($9) ($6) $90 16% 11% 4Q24 Price & Mix Volume Operations and Maintenance Input and 1Q25 Other Costs Outages T
Slide 8: 2Q25 Adjusted EBITDA Outlook: $75 - $95 Million
2Q25 Adjusted EBITDA Outlook: $75 - $95 Million 8 2Q25 vs. 1Q25 $ Million Price and Mix Favorable: $5 - $10 Primarily favorable mix in Latin America and North America Volume Stable: ($5) - $5 Stable Operations and Favorable: $10 - $15 Improved manufacturing operations Other Costs Input and Favorable
Slide 9: 82% of planned maintenance outage costs will be completed in 1H25
82% of planned maintenance outage costs will be completed in 1H25 9 $ Million $110 1H25 82% $63 $27 $18 $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 unabsorbe
Slide 10: Current uncoated freesheet conditions
Current uncoated freesheet conditions 10 Industry Demand 1Q25 versus 1Q24 Europe Latin North (Excl. CIS1 countries) America America (7%) +3% (1%) 1CIS: Commonwealth of Independent States Industry demand source: PPPC - Pulp and Paper Products Council © 2025 Sylvamo Corporation. All rights reserved.
Slide 11: Sylvamo Europe region update and path forward
Sylvamo Europe region update and path forward 11 Nymolla mill generated ~$70 million of FCF1 the last two years, but has experienced challenges • Exceeded our $20 million run-rate synergies target by $5 million • Wood costs escalated higher than we expected Overall European earnings performance belo
Slide 12: Potential challenges from tariff risks
Potential challenges from tariff risks 12 UFS supply & demand • Demand declines UFS global trade flows • Trade between regions may fluctuate • Raw materials Inflation • Transportation • Capital spending © 2025 Sylvamo Corporation. All rights reserved.
Slide 13: Well positioned for tariff uncertainty
Well positioned for tariff uncertainty 13 Majority of our raw materials and shipments are within region, while UFS imports are < 15% of industry supply Europe Latin America North America 2024 Sylvamo Data % Raw materials sourced within region > 90% % Shipments within region > 90% > 80% > 95% 2024 In
Slide 14: Fortified financial position provides flexibility
Fortified financial position provides flexibility 14 ~$650 million in net debt, 1.1x debt-to-Adjusted EBITDA; no major maturities until 2027 Net Debt Debt Maturity as of March 31, 2025 $ Million $ Million $1,388 $385 $654 $189 $161 Net Debt / Adj. EBITDA (x) 2.6x 1.1x $15 $23 $23 $12 Initial Net Deb
Slide 15: Navigating an uncertain environment from a position of strength
Navigating an uncertain environment from a position of strength 15 Capital Allocation Framework • Allows us to focus on customers, run the business, while navigating economic headwinds Maintain Strong Financial Position • Enables reinvesting in our business even during times of uncertainty Reinvest
Slide 16: Confident in our future and motivated by opportunities that lie ahead
Confident in our future and motivated by opportunities that lie ahead 16 • Strong financial position provides flexibility • Well positioned to navigate tariff uncertainty • Reinvesting in our businesses to increase earnings and cash flows • Creating shareowner value through cash generation and disci
Slide 17: Appendix
17 Appendix © 2025 Sylvamo Corporation. All rights reserved.
Slide 18: Contacts
Contacts 18 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 19: Selected Annual Financial Guidance
Selected Annual Financial Guidance 19 2024 2025 $ Million Actual Outlook Total Maintenance Outage Costs $73 $110 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 20: 1.1x Net Debt-to-Adjusted EBITDA - March 31, 2025
1.1x Net Debt-to-Adjusted EBITDA - March 31, 2025 20 Gross Debt $ Million $1,520 $1,397 $1,026 $950 $796 $808 Initial Gross Dec 21 Dec 22 Dec 23 Dec 24 Mar 25 Debt at 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 March 31,
Slide 21: Debt Maturity Profile
Debt Maturity Profile 21 March 31, 2025 $ Million $385 $189 $161 $15 $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 reserved
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 22 $ Million 1Q24 4Q24 1Q25 Cash from Continuing Operations $27 $164 $23 Cash Invested in Capital Projects ($60) ($64) ($48) Free Cash Flow ($33) $100 ($25) Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating
Slide 23: 1Q25 vs. 4Q24 Free Cash Flow
1Q25 vs. 4Q24 Free Cash Flow 23 $ Million 4Q24 1Q25 Variance Adjusted EBITDA $157 $90 ($67) Cash Taxes ($40) ($14) $26 Cash Interest ($10) ($6) $4 Cash Special Items ($2) - $2 Other Changes in Working Capital $59 ($47) ($106) Cash Provided by Operating Activities $164 $23 ($141) Capital Spending ($6
Slide 24: 1Q25 vs. 1Q24 Free Cash Flow
1Q25 vs. 1Q24 Free Cash Flow 24 $ Million 1Q24 1Q25 Variance Adjusted EBITDA $118 $90 ($28) Cash Taxes ($13) ($14) ($1) Cash Interest ($11) ($6) $5 Cash Special Items ($2) - $2 Other Changes in Working Capital ($65) ($47) $18 Cash Provided by Operating Activities $27 $23 ($4) Capital Spending ($60)
Slide 25: Free Cash Flow by Quarter - Since Spinoff
Free Cash Flow by Quarter - Since Spinoff 25 $ 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 1Q25 ($25) ($33) © 2025 Sylvamo Corporation. All rights reserved.
Slide 26: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 26 2Q25 $ Million 1Q24 4Q24 1Q25 Outlook Net Income (Loss) $43 $81 $27 $9 - $23 Depreciation, Amortization, Cost of Timber Harvested 39 44 40 48 Interest (Income) Expense, Net 9 7 9 8 Income Tax Provision 17 19 6 3-9 Adjustments Equity-based Compensation 7 6
Slide 27: Adjusted EBITDA and Margin Reconciliation
Adjusted EBITDA and Margin Reconciliation 27 $ Million 1Q24 4Q24 1Q25 Adjusted EBITDA Europe 5 14 (15) Latin America 34 70 46 North America 79 73 59 Total Business Segment Adjusted EBITDA $118 $157 $90 Net Sales (excluding Inter-segment Sales eliminations) Europe 207 194 190 Latin America 216 266 19
Slide 28: Adjusted Operating Earnings per Share Reconciliation
Adjusted Operating Earnings per Share Reconciliation 28 $ Million 1Q24 4Q24 1Q25 Net Income (Loss) $43 $81 $27 Special Items Expense (Income) $2 $1 $1 Adjusted Operating Earnings $45 $82 $28 Adjusted Operating Earnings per Share $1.07 $1.96 $0.68 Adjusted Operating Earnings is a non-GAAP measure pre
Slide 29: Capacity by Grade
Capacity by Grade 29 000 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 30: 1Q25 Sales Volume
1Q25 Sales Volume 30 Latin North 000 Short Tons Europe Sylvamo America America Uncoated Papers 175 229 308 712 Market Pulp 34 29 33 96 Total 808 Sales volume includes revenue recognition © 2025 Sylvamo Corporation. All rights reserved.
Slide 31: 2023 - 2025 Economic Downtime
2023 - 2025 Economic Downtime 31 Thousand tons 185 150 61 27 98 23 56 124 58 123 2 75 25 25 2 56 11 7 23 25 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 UFS Pulp © 2025 Sylvamo Corporation. All rights reserved.
Slide 32: Total Maintenance Outage Costs - 2025 Outlook
Total Maintenance Outage Costs - 2025 Outlook 32 $ Million 1Q25 2Q25 3Q25 4Q25 2025 Actual Outlook Outlook Outlook Outlook Europe $12 $27 - - $39 Latin America $1 $16 $2 - $19 North America $14 $20 - $18 $52 Total $27 $63 $2 $18 $110 Total maintenance outage costs (shown for Sylvamo mills only) incl
Slide 33: Quarterly Business Segment Operating Results
Quarterly Business Segment Operating Results 33 Sales D&A Adjusted EBITDA $ Million 1Q24 4Q24 1Q25 1Q25 1Q24 4Q24 1Q25 Europe $207 $194 $190 $8 $5 $14 ($15) Latin America $216 $266 $199 $18 $34 $70 $46 North America $490 $514 $438 $14 $79 $73 $59 Segment Total $913 $974 $827 $40 $118 $157 $90 Sum of
Slide 34: 1Q25 vs. 1Q24 Adjusted EBITDA
1Q25 vs. 1Q24 Adjusted EBITDA 34 $ Million $118 ($8) ($13) $4 ($2) ($9) $90 13% 11% 1Q24 Price & Mix Volume Operations Maintenance Input and 1Q25 and Costs Outages Transportation Costs © 2025 Sylvamo Corporation. All rights reserved.
Slide 35: Europe Adjusted EBITDA
Europe Adjusted EBITDA 35 1Q25 vs. 4Q24 $14 ($6) $2 ($10) 7% ($12) ($15) ($3) (8%) 4Q24 Price & Mix Volume Operations Maintenance Input and 1Q25 and Costs Outages Transportation Costs $ Million 1Q25 vs. 1Q24 $5 ($9) $1 $2 ($12) ($15) 2% ($2) (8%) 1Q24 Price & Mix Volume Operations Maintenance Input
Slide 36: Latin America Adjusted EBITDA
Latin America Adjusted EBITDA 36 1Q25 vs. 4Q24 $70 ($10) ($15) ($6) $8 $46 ($1) 26% 23% 4Q24 Price & Mix Volume Operations Maintenance Input and 1Q25 and Costs Outages Transportation $ Million Costs 1Q25 vs. 1Q24 9% 19% $10 ($4) $46 $34 $1 ($1) $6 16% 23% 1Q24 Price & Mix Volume Operations Maintenan
Slide 37: North America Adjusted EBITDA
North America Adjusted EBITDA 37 1Q25 vs. 4Q24 $73 $6 ($17) $4 ($11) $4 $59 14% 13% 4Q24 Price & Mix Volume Operations Maintenance Input and 1Q25 and Costs Outages Transportation $ Million Costs 1Q25 vs. 1Q24 9% 19% $79 $0 ($13) ($4) $0 ($3) $59 16% 13% 1Q24 Price & Mix Volume Operations Maintenance
Slide 38: Executing on our Investment Thesis
Executing on our Investment Thesis 38 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 39: Building a better future for people, the planet and our company
39 Building a better future for people, the planet and our company © 2025 Sylvamo Corporation. All rights reserved.