Slide 1: Second Quarter 2024 Financial Presentation Materials
Second Quarter 2024 Financial Presentation Materials August 7, 2024
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 pe
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations, adjusted net debt, and net secured debt. The Company believes these n
Slide 4: Q2'24 Financial Highlights
Q2’24 Financial Highlights Revenue by Segment/Product ⎔ Revenue of $419 million; +$34 million from Q2’23 ⎔ Operating Income of $28 million; +$35 million from Q2’23 Paperboard 14% ⎔ Adjusted Free Cash Flow generation of $69 million YTD ⎔ Adjusted EBITDA of $68 million; +$41 million from Q2’23 – High
Slide 5: High Purity Cellulose
High Purity Cellulose Operating Income Bridge Quarter Ended Key Financials Jun 29, Mar 30, Jul 1, 2024 2024 2023 $ millions Net Sales $332 $307 $300 (1) (2) Operating Income 30 21 - Adjusted EBITDA 66 50 28 ⎔ Net price for HPC improved 5% resulting from improved product mix towards cellulose special
Slide 6: Paperboard
Paperboard Operating Income Bridge Quarter Ended Key Financials Jun 29, Mar 30, Jul 1, 2024 2024 2023 $ millions Net Sales $60 $53 $48 Operating Income 12 8 6 Adjusted EBITDA 15 12 10 Paperboard - Volume and Price ⎔ Sales prices decreased 8% compared to Q2’23, mainly due to sales mix and increased c
Slide 7: High-Yield Pulp
High-Yield Pulp Operating Income Bridge Quarter Ended Key Financials Jun 29, Mar 30, Jul 1, 2024 2024 2023 $ millions Net Sales $33 $34 $44 Operating Income 1 (1) 1 Adjusted EBITDA 2 - 1 ⎔ External sales prices declined 9% compared to High-Yield Pulp - Volume and Price Q2’23, mainly due to market su
Slide 8: Consolidated Operating Income
Consolidated Operating Income BRIDGE Q2’23 TO Q2’24 ⎔ Improvements in sales mix more than offset lower sales prices ⎔ Sales volume increases in cellulose specialties and Paperboard were partially offset by the reduced sales volumes in HPC commodities and High-Yield Pulp – Commodity sales volumes dec
Slide 9: Capital Structure & Liquidity
Total Liquidity Capital Structure & Liquidity ⎔ Adjusted Net Debt of $681 million Cash – Gross debt of $795 million; $44 million decrease $135 $260 $114 Factoring (France) from Q2’23 Million ABL (North America) – Net Secured debt of $659 million $11 ⎔ $260 million of liquidity, including $114 millio
Slide 10: 2024 Initiatives
2024 Initiatives ⎔ Actively pursuing refinance of Senior Notes ⎔ Asset optimization before going current in January 2025 – Reduce commodity exposure and earnings volatility, and – Continued focus on deleveraging through targeted debt operate assets only when market conditions support reduction profi
Slide 11: 2024 Guidance
2024 Guidance ADJUSTED FREE CASH FLOW GUIDANCE OF $100-110 MILLION ($ Millions) $205-215 Capital allocation decision to repay debt or invest in Year-to-date high return $44 YTD working capital use strategic capital of $25M for bridge projects volume build, $35M source by year-end 39 85 +$11 YTD $100
Slide 12: Market Outlook
Market Outlook High Purity Cellulose ⎔ 2024 cellulose specialties prices to increase by a low single-digit percentage versus 2023 ⎔ Sales volumes for cellulose specialties to increase due to competitor plant closure, uptick in ethers sales, and bridge volumes from Temiscaming HPC suspension, partial
Slide 13: Future CS Supply and Demand Dynamic
Future CS Supply and Demand Dynamic MARKET DYNAMICS TIGHTEN AMID CAPACITY RATIONALIZATION Reflects ~10% reduction in CS industry capacity Shipment to Capacity 85% 81% 82% 83% 80% 87% 90% 92% 91% Ratio(1) 1.6 1.4 MILLIONS OF TONNES (2) 0.2 0.3 0.2 0.1 0.3 0.1 0.1 1.2 0.3 0.2 1.0 0.8 0.6 1.2 1.2 1.2 1
Slide 14: Reducing Net Leverage via EBITDA Growth & Debt Reduction
Reducing Net Leverage via EBITDA Growth & Debt Reduction 12.5x 16% 16.0% 14% 14.0% 10.0x 10.0x ~ 12% 11.3% 12.0% Net Debt/Adjusted EBITDA 10.3% 10.0% EBITDA Margin 7.5x 9.0% 8.5% 7.4% 8.0% 5.4x 5.2x 5.0x 6.0% 4.0x $1,095 3.8x 4.2x ~ 3.0x $937 4.0% $859 3.4x < 2.5x ~2.8x 2.5x $797 $795 (1) $727 2.0%
Slide 15: Appendix
Appendix
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA Net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adj
Slide 17: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ MILLIONS) 17
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations ($ MILLIONS) 18
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ($ MILLIONS) 19
Slide 20: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ MILLIONS) 20
Slide 21: Reconciliation of EBITDA Guidance
Reconciliation of EBITDA Guidance ($ MILLIONS) 21
Slide 22: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow ($ MILLIONS) 22
Slide 23: Reconciliation of Adjusted Free Cash Flow Guidance
Reconciliation of Adjusted Free Cash Flow Guidance ($ MILLIONS) 23
Slide 24: Reconciliation of Adjusted Net Secured Debt
Reconciliation of Adjusted Net Secured Debt ($ MILLIONS) 24
Slide 25: Reconciliation of Adjusted Income from Continuing Operations
Reconciliation of Adjusted Income from Continuing Operations ($ MILLIONS) 25
Slide 26: Commodity Prices Mixed
Commodity Prices Mixed Viscose Delivered to China Fluff Delivered to North America 1,300 1,170 2,800 2,230 2,208 2,138 1,100 970 950 2,300 1,977 1,890 1,833 PRICE ($ / MT) 905 905 PRICE ($ / MT) 900 850 890 1,747 1,755 900 1,800 700 1,300 500 800 300 300 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1