Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Jefferies Industrial Conference 2017
15 slides from Rayonier Advanced Materials's conference presentation, August 2017
Slide 1: Jefferies Industrial Conference August 2017
Jefferies Industrial Conference August 2017
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 performa
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures These presentation materials contain certain non-GAAP financial measures, including EBITDA, adjusted free cash flows, pro forma operating income, pro forma net income and adjusted net debt. These non-GAAP measures are reconciled to each of their respective most directly c
Slide 4: Who We Are
Who We Are We are a new public company with 90 years of operating history We are a global leader in high purity cellulose products, including cellulose specialties (CS) We are the industry standard for high purity CS products for technically demanding end uses We have long-term customer rela
Slide 5: Market Pulp Industry Value Chain
Market Pulp Industry Value Chain* Market pulp industry : 65 MMT Cellulose Specialties segment: 1.4 MMT Cellulose High Strength Viscose and Specialties Specialty High Value Dissolving Pulp Commodity 5 MMT Viscose Fluff Acetate 5 MMT Commodity Ethers Market Pulp 54 MMT Increasing Specialization & Sale
Slide 6: Strategic Pillars of Growth
Strategic Pillars of Growth Cost Market Transformation Optimization Drives Growth and Shareholder Value RAYONIER Advanced Materials.
Slide 7: 4 Year Total Cost Improvement
Cost Improvement Initiatives ($ Millions) 25 4 Year Total Cost Improvement 30 $125M - $140M 50 35 $100 million in Cost Improvements achieved since 2014 * Breakdown of expected future cost savings on a run-rate basis included for illustrative purposes. To be refined in future periods to reflect actua
Slide 8: Acquisition Pillar
Acquisition Pillar Strategic Opportunity Summary On May 25, 2017, and as amended on July 24, 2017, Rayonier Advanced Materials entered into a definitive agreement to acquire Tembec Inc. (“Tembec”) in a transaction valued at $870 million+, including $481 million+ of assumed net debt Tembec is a m
Slide 9: At a Glance
At a Glance Combination of Two Best-in-Class Organizations with Complementary Products Sales by Region Sales by Region 90 years as leading supplier Global leader in ethers pulp of High Purity Cellulose Diversified forest products Other products Other 12% 21% United manufacturer of China United
Slide 10: Integrated and Complementary Businesses
Integrated and Complementary Businesses High Purity Cellulose Forest Products Packaging & Newsprint High-Yield Pulp Products Acetate Wood Pulp Dissolving Dimensional Lumber Ethers Packaging Framing Materials Mechanical Specialties Multiply Coated Board Wood Chips Hardwood Pulp Viscose Newsprint Fuel
Slide 11: Acquisition Significantly Increases Scale and Diversifies Product Mix
Acquisition Significantly Increases Scale and Diversifies Product Mix Significantly Increase the Size and Scale Diversified Product Mix+ of the Combined Business LTM Revenue Pro Forma Revenue Pro Forma EBITDA $2,500 $2,020 $2,000 Acetate Pulp $1,500 $1,180 $1,180 11% 4% 3% $1,000 $840 28% 13% $500 $
Slide 12: Compelling Synergies Drive Incremental Value
Compelling Synergies Drive Incremental Value SG&A/Public Company Costs Sales & Marketing General corporate cost Optimized sales channel reductions 15% distribution 20% Consolidation of duplicate Regional customer systems and spending alignment $50 million* Operational/Manufacturing 35% Suppl
Slide 13: Expands Global Presence and Diversifies Currency Exposure
Expands Global Presence and Diversifies Currency Exposure Increases geographical diversity and mitigates currency risk Kapuskasing, Kapuskasing, ON ON Matane, Matane, QC QC Cochrane, Cochrane, ON ON Hearst, ON Hearst, ON La La Sarre, Sarre, QC QC London, London, UK UK Chap
Slide 14: Acquisition of Tembec Process
Acquisition of Tembec Process Tembec Shareholder Vote Canadian Court Ratifies Vote - August 7 Antitrust Clearance United States Germany Canada China Investment Canada Compliance Closing expected in Q4 2017 14
Slide 15: Combination Drives Successful Earnings Growth
Combination Drives Successful Earnings Growth Enhanced scale drives ability to execute growth strategy Superior capabilities in high purity cellulose Diversified paper and forest products profile Expansion of cost transformation initiative Significant high return capital project opportunit
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