Slide 1: Second Quarter 2015 Financial Presentation Materials
Second 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 Six Months Ended 2Q 2015 2Q 2014 2Q 2015 2Q 2014 Sales $ 221 $ 213 $ 442 $ 456 Operating income 8 6 33 50 Pro forma operating income* 34 42 59 89 Net income — 5 10 36 Pro forma net income* 16 25 26 58 Pro forma net income per share* $ 0.39 $ 0.59 $ 0.6
Slide 4: Pro Forma Operating Income - Variance Analysis
Pro Forma Operating Income - Variance Analysis ($ Millions) (14) 4 2 42 34 (32) (1) 3 89 59 Price variance is calculated for all products. Volume variance is calculated on a contribution margin basis. 4
Slide 5: Capital Resources & Liquidity
Capital Resources & Liquidity ($ Millions) Six Months Ended June 27, 2015 June 28, 2014 Cash Provided by Operating Activities $ 88 $ 103 Cash Used for Investing Activities (41) (64) Cash Used for Financing Activities (40) (19) EBITDA* 75 88 Pro Forma EBITDA* 101 127 Adjusted Free Cash Flow* 47 52 De
Slide 6: Existing Jesup, GA plant configuration
Existing Jesup, GA plant configuration Pulp process RYAM CS A - Line technology technology Other processing Cellulose Specialties 330,000 tons/yr Pulp process RYAM CS B - Line technology technology Other processing Cellulose Specialties 190,000 tons/yr Pulp process New generation or C - Line technol
Slide 7: New Jesup, GA plant configuration - 2016
New Jesup, GA plant configuration - 2016 Pulp process New generation A - Line technology CS technology Other processing Cellulose Specialties 330,000 tons/yr Pulp process RYAM CS B - Line technology technology Other processing Cellulose Specialties 190,000 tons/yr Pulp process C - Line technology Ot
Slide 8: Implications of Strategy
Implications of Strategy ⦁ Expected annual cost savings of approximately $14 million ⦁ Commodity production capacity increases by 11%, to approximately 245,000 tons annually ⦁ CS capacity will be reduced by 190,000 tons or 28% ⦁ The reconfiguration requires a capital investment of approximately $25
Slide 9: 2015 Focus and Initiatives
2015 Focus and Initiatives ⦁ Reduce costs and enhance profitability ⦁ Efficient and reliable operations ⦁ Discipline of continuous improvement ⦁ Focus on cash generation ⦁ Asset optimization ⦁ Review and match assets to market conditions ⦁ Drive incremental sales and profits from our assets, specifi
Slide 10: Appendix
RAYONIER Advanced Materials. Appendix
Slide 11: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the ass
Slide 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Six Months Ended June 27, 2015 June 28, 2014 EBITDA Reconciliation Net income $ 10 $ 36 Depreciation and amortization 42 38 Interest expense, net 19 3 Income tax expense (benefit) 4 11 EBITDA $ 75 $ 88 Non-cash impairment charge 28 — One-time separati
Slide 13: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ Millions, except per share amounts) Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Per Per Per Per Diluted Diluted Diluted Diluted Pro Forma Operating Income and Net Income: $ Share $ Share $ Share $ Sha
Slide 14: Selected Financial and Operating Information
Selected Financial and Operating Information Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Sales Volume, thousands of metric tons Cellulose specialties 111 113 219 227 Commodity products 55 13 113 63 Total 166 126 332 290 Sales Price, $ per metric ton Ce
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule Millions 287 274 72 550 550 3* 4 9 10 11 48 * $3 million of Term A-2 paid in 2019 15