Slide 1: Fourth Quarter 2015 Financial Presentation Materials
Fourth Quarter 2015 Financial Presentation Materials
Slide 2: Safe Harbor
Safe Harbor 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 Rayonier Advanced Materials’ future events, developments or financial or operational performan
Slide 3: Financial Highlights
Financial Highlights ($ Millions) Quarter Ended Twelve Months Ended 4Q 2015 4Q 2014 4Q 2015 4Q 2014 Sales $ 242 $ 248 $ 941 $ 958 Operating Income (Loss) 29 (28) 120 63 Pro Forma Operating Income* 30 47 149 181 Net Income (Loss) 13 (23) 55 32 Pro Forma Net Income* 14 26 73 106 Pro Forma Net Income p
Slide 4: Pro Forma Operating Income - Variance Analysis
Pro Forma Operating Income - Variance Analysis ($ Millions) Three Months Ended (13) 1 1 (6) 47 30 4Q 2014 Price Volume / Costs SG&A and Other 4Q 2015 Sales Mix (62) 27 (10) Twelve Months Ended 13 181 149 2014 Price Volume / Costs SG&A and Other 2015 Sales Mix Price variance is calculated for all pro
Slide 5: Selected Financial and Operating Information
Selected Financial and Operating Information Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2015 2014 2015 2014 Sales Volume, thousands of metric tons Cellulose specialties 116 123 467 479 Commodity products 73 46 247 148 Total 189 169 714 627 Average Sale
Slide 6: Capital Resources & Liquidity
Capital Resources & Liquidity ($ Millions) Twelve Months Ended December 31, 2015 December 31, 2014 Cash Provided by Operating Activities $ 202 $ 188 Cash Used for Investing Activities (78) (91) Cash Used for Financing Activities (89) (31) Adjusted Free Cash Flow* 124 113 EBITDA* 209 149 Pro Forma EB
Slide 7: 2016 Full Year Guidance
2016 Full Year Guidance ▪ CS prices 6 to 7% below 2015 average prices ▪ CS volumes down 4 to 5% from 2015 ▪ Commodity sales volumes higher than 2015 ▪ Pro forma EBITDA of $175 to $190 million ▪ Expected cost savings of $25 to $40 million ▪ CapEx of approximately $90 million ▪ Free cash flow of $75 t
Slide 8: EBITDA Bridge 2015 Pro Forma to 2016 Guidance
EBITDA Bridge 2015 Pro Forma to 2016 Guidance ($ Millions) $250 (50) $225 $200 (18) 25-40 $175 (20) 238 $150 175-190 $125 $100 2015 Pro Forma Price Volume / Mix Inflation / Boiler MACT Cost Improvements 2016 Guidance * Cost reductions include remainder of 2015 cost reduction initiatives, impact of a
Slide 9: Outlook
Outlook ▪ Cellulose specialties ("CS") remain under pressure — Oversupply continues — Acetate tow destocking depresses pulp demand • China excess inventory remains • Global tobacco companies inventories in-line • Anticipate underlying acetate tow demand to be flat — Ethers, casings, tire cord filtra
Slide 10: Our Long-Term Growth Strategy
Our Long-Term Growth Strategy ▪ Three-year transformation initiative to enhance profitability — Improve costs by $75 to 90 million run-rate over the next three years — Maintain efficient and reliable operations — Optimize assets to match market conditions ▪ Innovation to drive growth and diversifica
Slide 11: Transformation Initiative
Cost Improvement Initiatives ($ Millions) 35 Transformation Initiative 4 year Total Cost Improvement 30 $90M - $105M 2016 Cost Savings $25 - $40 million $125M - $140M 25 140 - 190 15 35 2014 Base 2015 Actual 2015 to be 2016 2017* 2018* Realized in 2016 * Breakdown of future cost savings on a run-rat
Slide 12: Appendix
RAYONIER Advanced Materials. Appendix
Slide 13: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the ass
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Twelve Months Ended December 31, 2015 December 31, 2014 EBITDA Reconciliation Net Income (Loss) $ 55 $ 32 Depreciation and amortization 89 86 Interest expense, net 37 22 Income tax expense (benefit) 28 9 EBITDA $ 209 $ 149 Non-cash impairment charge 2
Slide 15: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ Millions, except per share amounts) Three Months Ended Twelve Months Ended December 31, 2015 September 26, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Per Per Per Per Per Pro Forma Operating Income and Diluted Diluted Diluted Diluted
Slide 16: Debt Maturity Schedule
Debt Maturity Schedule Millions $900 $800 263 $700 249 $600 56 $500 $400 $300 550 550 $200 $100 38 8 10 11 3* $0 0 Total 2016 2017 2018 2019 2020 Thereafter Senior Notes 5.5% Term A-1 Loan Facility Term A-2 Loan Facility Revolver ($250m Line of Credit) * $3 million of Term A-2 paid in 2020 16