Slide 1: First Quarter 2023 Financial Presentation Materials
First Quarter 2023 Financial Presentation Materials May 9, 2023
Slide 2: Forward-Looking Statements / Safe Harbor
Forward-Looking Statements 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 RYAM’s future events, developments, or financial or operational per
Slide 3: Safe Harbor
Safe Harbor Business and Operational Risks (continued) Unfavorable changes in the availability of, and prices for, wood fiber may have a material adverse impact on the Company’s business, financial condition and results of operations. Substantial capital is required to maintain the Company’s facilit
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations and adjusted net debt. The Company believes these non-GAAP financ
Slide 5: Q1'23 Financial Highlights
Q1’23 Financial Highlights ◼ Revenue of $467 million; +$115 million or +33% from Q1’22 Revenue by Segment/Product* ◼ Operating income of $17 million; +$33 million from Q1’22 ◼ Adjusted Free Cash Flow generation of $36 million ◼ Adjusted EBITDA of $51 million; +$31 million or +155% from Q1’22 — High
Slide 6: High Purity Cellulose
High Purity Cellulose Operating Income Bridge $ Millions Quarter Ended 70 Key Financials Apr 1, Dec 31, Mar 26, 60 50 2023 2022 2022 40 ($ millions) 30 20 13 Net Sales $374 $384 $281 10 0 Operating Income 13 10 (8) (10) (8) Adjusted EBITDA 44 45 16 (20) Q1'22 Price Volume / Cost SG&A / Q1'23 Sales M
Slide 7: Paperboard
Paperboard Quarter Ended $ Millions Operating Income Bridge Apr 1, Dec 31, Mar 26, 16 Key Financials 14 2023 2022 2022 12 10 10 ($ millions) 8 6 Net Sales $59 $67 $54 6 4 Operating Income 10 9 6 2 Adjusted EBITDA 13 14 10 0 Q1'22 Price Volume / Cost SG&A / Q1'23 Sales Mix Other Paperboard - Volume a
Slide 8: High-Yield Pulp
High-Yield Pulp Quarter Ended Operating Income Bridge $ Millions Apr 1, Dec 31, Mar 26, 16 Key Financials 14 2023 2022 2022 12 10 ($ millions) 7 8 Net Sales $42 $58 $22 6 4 Operating Income 7 12 - 2 0 Adjusted EBITDA 8 13 - 0 Q1'22 Price Volume / Cost SG&A / Q1'23 Sales Mix Other High-Yield Pulp - V
Slide 9: Consolidated Operating Income
Consolidated Operating Income ($ Millions) Bridge Q1’22 to Q1’23 80 70 60 50 40 30 20 17 10 (16) 0 (10) (20) (30) Q1'22 Price Volume / Cost SG&A / Q1'23 Sales Mix Other ◼ Operating income of $17 million; up $33 million or +206% from prior year period ◼ Higher prices across High Purity Cellulose, Pap
Slide 10: Capital Structure & Liquidity
Capital Structure & Liquidity ◼ Adjusted Net Debt of $683 million; Total Liquidity $72 million decline from Q1’22 ◼ $276 million of liquidity, including $169 million of cash — Expanded ABL in Q2 through credit insurance $100 providing $36M of additional availability $276 ◼ Capital Allocation focused
Slide 11: Update on 2023 Initiatives
Update on 2023 Initiatives ◼ Solid progress towards 2023 guidance Reiterating guidance to achieve $200-215 million of Adjusted EBITDA in 2023 — ◼ $51 million of Adjusted EBITDA in Q1’23 — Increasing guidance to generate $40-65 million of Adjusted Free Cash Flow ◼ Generated $36 million of Adjusted Fr
Slide 12: 2023 Guidance
2023 Guidance Reaffirming Guidance to Achieve $200-215M in EBITDA ($ Millions) $200-215 $19M YTD Capital Allocation 65-70 decision to repay debt or invest in high return Strategic Capital projects 45 $15M YTD $14M YTD $40-65 $35-55 $31M ~90 YTD 25 $51M 5 YTD 10-15 $36M YTD * Working capital includes
Slide 13: Market Assessment
Market Assessment ◼ 2023 cellulose specialties price increase of 7% sequentially from prior quarter ◼ Demand mixed for cellulose specialties with strength for acetate and other CS end markets offsetting softness in construction and food-related markets ◼ Fluff prices are expected to decline, in line
Slide 14: Reducing Net Leverage via EBITDA Growth & Debt Reduction
Reducing Net Leverage via EBITDA Growth 12.5x & Debt Reduction 16.0% 15% 14.0% 10.0x 13% 10.0x 12% 12.0% 10.9% Net Debt/Adjusted EBITDA 10.3% 11% 10.0% EBITDA Margin 7.5x 9.0% 7.4% 8.0% 5.4x 5.0x 6.0% 4.0x $1,095 3.3x ~ 3.5x $937 4.0% $859 $852 2.5x 2.5x ~$840 ~$750 2.0% 0.0x 0.0% 2020 Actual 2021 A
Slide 15: Appendix
Section Appendix
Slide 16: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non- GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under
Slide 17: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ Millions) Three Months Ended December 31, (in millions) April 1, 2023 2022 March 26, 2022 High Purity Cellulose $ 374 $ 384 $ 281 Paperboard 59 67 54 High-Yield Pulp 42 58 22 Eliminations (8) (9) (5) Net sales $ 467 $ 500 $ 352 Three Months Ended December
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations ($ Millions) Three Months Ended April 1, 2023 December 31, 2022 March 26, 2022 Net sales $ 467 $ 500 $ 352 Cost of sales (430) (456) (346) Gross margin 37 44 6 Selling, general and administrative expenses (19) (23) (20) Other operating expense, net (1) (5) (2) O
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ($ Millions) December 31, April 1, 2023 2022 Assets Cash and cash equivalents $ 169 $ 152 Other current assets 493 538 Property, plant and equipment, net 1,144 1,151 Other assets 504 507 Total assets $ 2,310 $ 2,348 Liabilities and Stockholders’ Equity Debt due within one
Slide 20: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) Three Months Ended April 1, 2023 High Purity High-Yield Cellulose Paperboard Pulp Corporate Total Income (loss) from continuing operations $ 13 $ 10 $ 7 $ (28) $ 2 Depreciation and amortization 31 3 1 — 35 Interest expense, net — — — 15 15 Income tax
Slide 21: Reconciliation of EBITDA Guidance
Reconciliation of EBITDA Guidance ($ Millions) Annual Guidance Range 2023 Low High Income (loss) from continuing operations $ (8) $ 12 Depreciation and amortization 135 135 Interest expense, net(a) 70 65 Income tax expense(b) 3 3 EBITDA and Adjusted EBITDA-continuing operations $ 200 $ 215 21
Slide 22: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow ($ Millions) Three Months Ended April 1, 2023 March 26, 2022 Cash provided by (used in) operating activities-continuing operations $ 51 $ (23) Capital expenditures, net (15) (36) Adjusted free cash flows-continuing operations $ 36 $ (59) 22
Slide 23: Reconciliation of Adjusted Free Cash Flow Guidance
Reconciliation of Adjusted Free Cash Flow Guidance ($ Millions) Annual Guidance Range 2023 Low High Cash provided by operating activities-continuing operations $ 145 $ 165 Capital expenditures, net (105) (100) Adjusted free cash flows-continuing operations $ 40 $ 65 23
Slide 24: Reconciliation of Adjusted Net Debt
Reconciliation of Adjusted Net Debt ($ Millions) December 31, April 1, 2023 2022 Debt due within one year $ 14 $ 14 Long-term debt 832 839 Total debt 846 853 Unamortized debt premium, discount and issuance costs 6 6 Cash and cash equivalents (169) (152) Adjusted net debt $ 683 $ 707 24
Slide 25: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income ($ Millions) Three Months Ended April 1, 2023 December 31, 2022 March 26, 2022 Per Diluted Per Diluted Per Diluted $ Share $ Share $ Share Income (loss) from continuing operations $ 2 $ 0.02 $ 4 $ 0.05 $ (24) $ (0.38) Pension settlement loss 2 0.03 — — — — Gain on d
Slide 26: Commodity Prices Mixed
Commodity Prices Mixed Price ($ / MT) Viscose Price ($ / MT) Fluff 1,400 Delivered to China Delivered to North America 2,400 2,230 2,208 1,170 2,138 1,130 2,200 2,070 1,200 1,105 1,020 2,000 940 970 1,770 935 905 1,000 1,800 1,618 1,647 1,640 1,600 800 1,400 1,200 600 1,000 400 800 Q2 Q3 Q4 Q1 Q2 Q3