Slide 1: Second Quarter 2021 Financial Presentation Materials
Second Quarter 2021 Financial Presentation Materials August 3, 2021
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 Rayonier Advanced Materials’ future events, developments, or financ
Slide 3: Safe Harbor
Safe Harbor Regulatory Risks Our business is subject to extensive environmental laws, regulations and permits that may restrict or adversely affect our financial results and how we conduct business; The potential longer-term impacts of climate-related risks remain uncertain at this time. Financial R
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures These presentation materials contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted operating income, adjusted income (loss) from continuing operations and adjusted net debt. These non-GAAP measures are reconcile
Slide 5: Q2'21 Financial Highlights
Q2’21 Financial Highlights Combined Revenue* Revenue of $341 million from continuing operations & $212 million from discontinued operations 37% Operating Income of $1 million from continuing operations & $553 45% million $115 million from discontinued operations Total Adjusted EBITDA of $149 m
Slide 6: High Purity Cellulose
High Purity Cellulose Quarter Ended $ Millions Operating Income/(Loss) Bridge 25 Jun 26, Mar 27, Jun 27, 2021 2021 2020 20 Key Financials ($ millions) 15 11 Net Sales $255 $250 $255 10 7 Operating Income/ 11 6 7 5 Adjusted EBITDA 38 35 31 0 Q2'20 Price Volume / Cost SG&A / Q2'21 Sales Mix Other High
Slide 7: Paperboard
Paperboard Operating Income/(Loss) Bridge $ Millions Quarter Ended 16 Jun 26, Mar 27, Jun 27, 14 12 2021 2021 2020 10 Key Financials ($ millions) 8 6 Net Sales $57 $48 $43 6 4 2 Operating Income/(Loss) 2 6 6 2 Adjusted EBITDA 7 10 10 0 Q2'20 Price Volume / Cost SG&A / Q2'21 Sales Mix Other Paperboar
Slide 8: High-Yield Pulp
High-Yield Pulp High-Yield Pulp Operating Income/(Loss) Bridge Quarter Ended $ Millions Jun 26, Mar 27, Jun 27, 6 2021 2021 2020 Key Financials ($ millions) 4 Net Sales $37 $28 $32 1 1 Operating Income/(Loss) 1 (1) 1 2 Adjusted EBITDA 2 - 2 0 Q2'20 Price Volume / Cost SG&A / Q2'21 Sales Mix Other Hi
Slide 9: Consolidated Operating Income/(Loss) from Continuing Operations
Consolidated Operating Income/(Loss) from Continuing Operations ($ Millions) Bridge Q2 2020 to Q2 2021 25 20 15 10 5 (6) 1 0 (5) (10) Q2'20 Price Volume / Cost SG&A / Q2'21 Sales Mix Other Operating Income of $1 million; up $7 million from prior year Improved prices across commodity High Purity
Slide 10: Discontinued Operations
Discontinued Operations Forest Products & Newsprint $ per quarter Duties Paid $ cumulative 12 120 Quarter Ended 10 100 Jun 26, Mar 27, Jun 27, 8 80 2021 2021 2020 6 60 Key Financials ($ millions) 4 40 Net Sales $212 $146 $72 2 20 Operating Income/(Loss) 115 56 (10) 0 0 Adjusted EBITDA 116 58 (5) Q3
Slide 11: Net Debt
Net Debt Near-term Goal of ~$650 million $ millions 1,000 800 1,081 877 600 ~650 400 Target 2.5x 200 EBITDA 0 Total Debt Cash Net Debt Proceeds Cash Tax Cash Value Free Cash Strategic Near-Term Softwood Long-Term from Asset Refunds of GFP Flow Investment Debt Target Lumber Debt Ratio Sale Shares Dut
Slide 12: Disciplined and Balanced Capital Allocation
Disciplined and Balanced Capital Allocation Cash Flow From Operations Maintain Assets ~$100 million of annual capex Adjusted Free Cash Flow Reduce Leverage Target 2.5x Net Leverage Value Driven Approach focused on Risk Adjusted Returns on Invested Capital Investment in the Return of Capital External
Slide 13: Global Commodity Prices Recover
Global Commodity Prices Recover Price ($ / MT) Viscose Price ($ / MT) Fluff 1,200 Delivered to China 1,105 1,800 Delivered to North America 1,618 905 1,600 1,000 1,285 1,400 1,163 1,183 1,175 1,165 745 1,107 1,122 800 655 650 675 1,200 635 615 1,000 600 800 400 600 400 200 200 0 0 Q3 Q4 Q1 Q2 Q3 Q4
Slide 14: Well-Positioned in Current Market
Well-Positioned in Current Market Demand for Cellulose Specialties strengthening Commodity viscose and fluff prices continue to trend upward High Purity Total volumes expected increase in back half of 2021 Cellulose Aggressively target margin improvements for CS in 2022 Accelerated interes
Slide 15: Key Investment Highlights
Key Investment Highlights Leader in High-Value Cellulose Specialties Broad and Diversified Portfolio of Cellulose-based Products Leading R&D Platform with New Product & BioFuture Opportunities Proven Ability to Control Costs and Manage Cash Flows Solid Liquidity and Financial Flexibility with No Sig
Slide 16: Appendix
RAYONIER Advanced Materials. Appendix
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as net income (loss) 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 t
Slide 18: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted Free Cash Flows – Discontinued Operations is defined as cash provided by operating activities from continuing operations adjusted for capital expenditures excluding strategic capital. Adjusted free cash flows is a non- GAAP measure of cash generated during a
Slide 19: Reconciliation of Consolidated EBITDA
Reconciliation of Consolidated EBITDA ($ Millions) 19
Slide 20: Reconciliation of Consolidated Adjusted Free Cash Flow
Reconciliation of Consolidated Adjusted Free Cash Flow ($ Millions) Six Months Ended Jun 26, Jun 27, Adjusted Free Cash Flows: 2021 2020 Cash provided by operating activities $ 186 $ 11 Capital expenditures, net (45) (17) Adjusted Free Cash Flows from Total Operations $ 141 $ (6) 20
Slide 21: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) 21
Slide 22: Reconciliation of EBITDA by Segment (continued)
Reconciliation of EBITDA by Segment (continued) ($ Millions) 22
Slide 23: Reconciliation of Adjusted Free Cash Flows
Reconciliation of Adjusted Free Cash Flows ($ Millions) Six Months Ended Jun 26, Adjusted Free Cash Flows – Continuing Operations: 2021 Cash provided by operating activities of continuing operations $ 46 Capital expenditures, net (43) Adjusted Free Cash Flows – Continuing Operations $ 3 Six Months E
Slide 24: Reconciliation of EBITDA by Discontinued Segment
Reconciliation of EBITDA by Discontinued Segment ($ Millions) 24
Slide 25: Reconciliation of EBITDA by Discontinued Segment (continued)
Reconciliation of EBITDA by Discontinued Segment (continued) ($ Millions) 25