Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q4 2021 Earnings Presentation
24 slides from Rayonier Advanced Materials's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter 2021 Financial Presentation Materials
Fourth Quarter 2021 Financial Presentation Materials February 23, 2022
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: RYAM Attraction
RYAM ATTRACTION Market Leader in High Purity Cellulose with Best Products and Technical Acumen Unparalleled Security of Supply Offering a Broad and Diversified Portfolio of Cellulose-Based Products Leading R&D Platform with Innovation & BioFuture Opportunities Sustainable Raw Material & Natural-base
Slide 6: 2021 Financial & Strategic Highlights
2021 Financial & Strategic Highlights ◼ Revenue of $1,408 million from continuing operations; Revenue from Continuing Operations by Segment up 5% from 2020 ◼ Operating loss from continuing operations of $10 million; 9% $20 million favorable from 2020 15% ◼ $128 million of Adjusted EBITDA from contin
Slide 7: High Purity Cellulose
High Purity Cellulose Quarter Ended Year Ended Dec 31, Sep 25, Dec 31, Dec 31, Dec 31, 2021 2021 2020 2021 2020 Key Financials ($ millions) Key Financials ($ millions) Net Sales $299 $288 $294 Net Sales $1,091 $1,051 Operating Income/ 1 2 (3) Operating Income/ 20 7 Adjusted EBITDA 33 32 27 Adjusted
Slide 8: Paperboard
Paperboard Quarter Ended Year Ended Dec 31, Sep 25, Dec 31, Dec 31, Dec 31, 2021 2021 2020 2021 2020 Key Financials ($ millions) Key Financials ($ millions) Net Sales $52 $52 $49 Net Sales $208 $190 Operating Income/(Loss) 3 2 4 Operating Income/ 13 18 Adjusted EBITDA 6 6 8 Adjusted EBITDA 28 33 Pap
Slide 9: High-Yield Pulp
High-Yield Pulp Quarter Ended Year Ended Dec 31, Sep 25, Dec 31, Dec 31, Dec 31, 2021 2021 2020 2021 2020 Key Financials ($ millions) Key Financials ($ millions) Net Sales $29 $42 $34 Net Sales $136 $125 Operating Income/(Loss) (1) 8 (1) Operating Income/ 7 0 Adjusted EBITDA 0 9 0 Adjusted EBITDA 10
Slide 10: Consolidated Operating Income/(Loss) from Continuing Operations
Consolidated Operating Income/(Loss) from Continuing Operations ($ Millions) Bridge 2020 to 2021 80 60 40 20 (30) (10) 0 (20) (40) 2020 Price Volume / Cost SG&A / 2021 Sales Mix Other ◼ Operating loss of $10 million; improved $20 million from prior year ◼ Improved prices across commodity High Purity
Slide 11: Market Assessment
Market Assessment ◼ Strong Demand for Cellulose Specialties (CS) continues ◼ Expect double-digit prices increases for CS with sales volume increases in 2022 High Purity ◼ Extensive planned facility outages in 2022 focused on improving reliability Cellulose ◼ Commodity prices expected to be slightly
Slide 12: Reducing Net Debt
Reducing Net Debt Near-term Goal of ~$625 million $ millions 1,000 800 937 877 600 684 ~625 ~625 Target 400 2.5x 200 EBITDA 0 Total Debt Cash Net Debt Cash Tax Cash Value Near-Term Free Cash Strategic Softwood Long-Term Refunds of GFP Debt Target Flow Investment Lumber Duty Debt Ratio Shares Deposit
Slide 13: Driving EBITDA Growth
Driving EBITDA Growth 9% 2021 Adjusted CS Price Increases Cost Inflation Increased Reliability Return on Strategic R&D/Innovation EBITDA Margin EBITDA Margin & Lower Cost Investments Current Near-Term Medium-Term Future Not to scale 13
Slide 14: Key Areas of Focus
Key Areas of Focus Environmental, Social & Governance as a Competitive Advantage Leveraging our Core Competencies Self-Help to Manage Inflationary Costs & Supply-Chain Challenges Safe & Reliable Operations Enhancing Shareholder Value 14
Slide 15: Appendix
RAYONIER Advanced Materials. 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 Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative t
Slide 17: 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 18: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ Millions) Three Months Ended Year Ended Net sales December 31, September 25, December 31, December 31, December 31, (in millions) 2021 2021 2020 2021 2020 High Purity Cellulose $ 299 $ 288 $ 294 $ 1,091 $ 1,051 ............................................
Slide 19: Consolidated Statements of Income
Consolidated Statements of Income ($ Millions) Three Months Ended Year Ended December 31, September 25, December 31, December 31, December 31, 2021 2021 2020 2021 2020 Net Sales $ 374 $ 374 $ 372 $ 1,408 $ 1,344 Cost of Sales (361) (355) (361) (1,333) (1,280) Gross Margin 13 19 11 75 64 Selling, gen
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet ($ Millions) December 31, December 31, 2021 2020 Assets Cash and cash equivalents $ 253 $ 94 ....................................................................................................................................... Assets of discontinued operations-held for s
Slide 21: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) Three Months Ended December 31, 2021 High Purity High-Yield Corporate & EBITDA by Segment (a): Cellulose Paperboard Pulp Other Total Income (loss) from continuing operations $ 1 $ 3 $ (1) $ (31) $ (28) Depreciation and amortization 32 3 1 — 36 Interes
Slide 22: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) Year Ended December 31, 2021 High Purity High-Yield Corporate & EBITDA by Segment (a): Cellulose Paperboard Pulp Other Total Income (loss) from continuing operations $ 22 $ 14 $ 7 $ (93) $ (50) Depreciation and amortization 117 14 3 5 139 Interest exp
Slide 23: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income ($ Millions) Three Months Ended Year Ended December 31, September 25, December 31, December 31, December 31, 2021 2021 2020 2021 2020 Adjusted Income (Loss) Per Per Per Per Per from Continuing Diluted Diluted Diluted Diluted Diluted Operations (a): $ Share $ Share $
Slide 24: Commodity Prices Mixed
Commodity Prices Mixed Price ($ / MT) Viscose Price ($ / MT) Fluff 1,400 Delivered to China 2,000 Delivered to North America 1,105 1,800 1,618 1,640 1,640 1,200 1,010 930 1,600 905 1,285 1,000 1,400 1,183 1,175 1,165 1,122 800 650 675 1,200 635 615 1,000 600 800 400 600 400 200 200 0 0 Q1 Q2 Q3 Q4 Q
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