Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — BAML 2017 Leverage Finance Conference
14 slides from Rayonier Advanced Materials's conference presentation, Nov 29, 2017
Slide 1: 2017 Leverage Finance Conference
2017 Leverage Finance Conference November 29, 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: Rayonier Advanced Materials
Rayonier Advanced Materials NYSE-listed (“RYAM”) with 90 years of operating history ▪ Global leader in high purity cellulose products, including cellulose specialties (CS) – Only producer with five CS manufacturing lines in US, Canada and Europe ▪ Diversified product offerings with integrated forest
Slide 5: Drives Growth and Shareholder Value
$108 million of Utilize assets to Leverage Target investments Cost optimize existing knowledge and that leverage core Improvement products and history of capabilities to since 2014 market mix innovation towards grow and diversify Targeting Target $10-15 new markets business additional $3
Slide 6: Acquisition of Tembec Inc.
Acquisition of Tembec Inc. Strategic Opportunity Summary ▪ On November 17, 2017, Rayonier Advanced Materials acquired Tembec Inc. (“Tembec”) in a transaction valued at approximately $870 million+, including $481 million+ of assumed net debt ▪ Tembec is a manufacturer of forest products, including Hi
Slide 7: Compelling Strategic and Financial Rationale
Compelling Strategic and Financial Rationale A Diversified High Purity Cellulose, Packaging, Paper and Forest Products Company Complementary product offerings and Revenue: ~$2.0 billion* technical capabilities across High Purity Cellulose grades Adjusted EBITDA: ~$400 million* Additional gro
Slide 8: 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 Uni
Slide 9: Integrated and Complementary Businesses
Integrated and Complementary Businesses High Purity Cellulose Forest Products Packaging & Newsprint High-Yield Pulp Products Wood Pulp Acetate Dissolving Dimensional Lumber Ethers Packaging Framing Materials Mechanical Specialties Multiply Coated Board Wood Chips Hardwood Pulp Viscose Newsprint Fuel
Slide 10: Expanded Global Presence
Expanded Global Presence Increases geographical diversity and mitigates currency risk Kapuskasing, ON Kapuskasing, ON Matane, QC Matane, QC Cochrane, ON Cochrane, ON ON Hearst, ON Hearst, La La Sarre, QC Sarre, QC London, London, UK UK Chapleau, ON Chapleau, ON Bearn
Slide 11: Diversified and Attractive Product Portfolio
Diversified and Attractive Product Portfolio* RYAM Revenue Commodity Pro Forma Revenue Pro Forma EBITDA & Other pre-synergies Other CS Pulp 20% Acetate Pulp 10% 11% Ether 7% 4%3% Pulp 28% 13% 63% 14% Acetate Pulp ~$2.0 ~$350 Tembec Revenue billion million+ Other CS 3% Commodity Pulp & Other 15% 12%
Slide 12: Acquisition Financing
Acquisition Financing Balanced and Flexible Capital Structure Pro Forma Capital Structure ($ in millions) Debt Amount Term Interest Rate New Term Loan A-1 $ 230 2022 L + 2.25% New Term Loan A-2 $ 450 2024 L + 2.00%+ Other Secured Debt* $ 100 Various Various Senior Notes $ 506 2024 5.5% Total Debt $
Slide 13: 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 14: 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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