Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Investor Presentation (March 2024)
21 slides from Clearwater Paper's investor presentation, Mar 8, 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION March 2024
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements This presentation contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the proposed Augusta m
Slide 3: Clearwater Paper Overview: Well Positioned to Deliver Shareholder Value
Paperboard segment • Top 5 manufacturer of SBS paperboard • Diversified range of end-market products • Focused on North American converters with a strong service and quality commitment • Positioned for trends towards sustainable products • Pending acquisition of Augusta paperboard mill Consumer Prod
Slide 4: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY LEGACY OF PRIORITIZING SUSTAINABILITY OF OUR PRODUCTS AND PROCESSES © Clearwater Paper Corporation 2024 4Visit our website for more information on Clearwater Paper’s ESG journey: clearwaterpaper.com/sustainability Environmental stewardship is integral to our success, and
Slide 5: Full Year 2023 Business Highlights
Overall • Net sales $2.1 billion • Net income $108 million, adjusted net income $114 million • Adjusted EBITDA $281 million, up $54 million versus 2022 Pulp and Paperboard • SBS prices slightly higher versus 2022, trended lower in second half of 2023 versus second half of 2022 • Soft demand from con
Slide 6: Capital Structure and Allocation
© Clearwater Paper Corporation 2024 CAPITAL STRUCTURE AND ALLOCATION Capital structure summary • Ample liquidity • No material near-term debt maturities • Financing Augusta acquisition with $490 million of new secured debt, additional draws on existing credit facilities and cash on hand Capital allo
Slide 7: Paperboard Segment
PAPERBOARD SEGMENT © Clearwater Paper Corporation 2024 7
Slide 8: Paperboard Segment Overview
$1,064M 2023 NET SALES 19% 2023 ADJ. EBITDA MARGIN 840K TONS OF SBS CAPACITY 15% MARKET SHARE2 Key Metrics – December 20231 PAPERBOARD SEGMENT OVERVIEW 2023 CLW SBS Shipments Business • Manufactures high quality SBS (solid bleached sulfate) paperboard, part of ~10 million ton North American paperboa
Slide 9: Paperboard Industry Overview
Domestic 78% Net Exports 22% PAPERBOARD INDUSTRY OVERVIEW U.S. INDUSTRY OVERVIEW 20231 1. As reported by Fastmarkets RISI North American Paper Packaging Monitor – Jan 2024 © Clearwater Paper Corporation 2024 • SBS is a sustainable, high-performance paperboard grade with diverse, economically stable
Slide 10: Sustainable Paperboard Products
• Sustainable forest certifications for fiber supply have been in place for more than a decade • Inherently sustainable, fiber-based products that support the circular economy and meet the needs of converter operators and customers • Recent launches of differentiated products with recycled fiber con
Slide 11: 2023 Business Highlights – Pulp and Paperboard
Industry (SBS) • Shipments, production, and operating rates decreased 2023 versus 2022 based on AF&PA data • Shipments (in tons) decreased 15.5% • Production decreased 13.7% • Operating rates decreased from 93.4% to 83.5% • RISI reported price decreases of $80/ton between Q3 and Q4 2023, another $40
Slide 12: Augusta Manufacturing Facility Acquisition – Strategic Rationale
AUGUSTA MANUFACTURING FACILITY ACQUISITION – STRATEGIC RATIONALE © Clearwater Paper Corporation 2024 Our strategy is to strengthen our position as a premier, independent supplier of paperboard products to North American converters • ~10 million ton North America paperboard market, growing and well p
Slide 13: Augusta Manufacturing Facility – Key Takeaways
AUGUSTA MANUFACTURING FACILITY – KEY TAKEAWAYS © Clearwater Paper Corporation 2024 Improved scale in paperboard • $700 million intended acquisition of a high quality, well invested SBS facility • ~600 thousand tons of capacity, projected to be ~70 to 80% utilized in 2024 • Increases Clearwater Paper
Slide 14: Consumer Products Segment
CONSUMER PRODUCTS SEGMENT © Clearwater Paper Corporation 2024 14
Slide 15: Consumer Products Segment Overview
390K TONS OF ANNUAL PAPER CAPACITY 15% 2023 ADJ. EBITDA MARGIN $1,023M 2023 NET SALES 6% US SHARE2 Key Metrics – December 20231 CONSUMER PRODUCTS SEGMENT OVERVIEW 2023 CLW Tissue Shipments Business • Leader in growing North American private branded tissue market • Creates value for major retailers a
Slide 16: Consumer Products Industry Overview
Georgia- Pacific, 30% Procter & Gamble, 26% Kimberly- Clark, 15% First Quality, 6% Clearwater Paper, 6% Cascades, 3% Sofidel, 2% Irving , 2% Kruger, 2% All Other, 8% CONSUMER PRODUCTS INDUSTRY OVERVIEW U.S. INDUSTRY OVERVIEW Total category: ~10.2M ton market1 • Historic demand growth 1% to 1.5%, sli
Slide 17: Business Update – Consumer Products
Industry • Consumers shifting to private brands with economic uncertainty and inflation • Private brand share at 36%1, an all time high Clearwater Paper • Continued strong demand in 2023, with 52 million cases shipped versus 50 million in 2022 • Outstanding operating performance and strong service l
Slide 18: Appendix
APPENDIX © Clearwater Paper Corporation 2024 18
Slide 19: Key Segment Information
KEY SEGMENT INFORMATION Q4’2021 Q1’2022 Q2’2022 Q3’2022 Q4’2022 Q1’2023 Q2’2023 Q3’2023 Q4’2023 Pulp and Paperboard Sales ($ millions) $261.3 $266.2 $295.8 $300.8 $273.5 $278.8 $272.3 $261.4 $251.3 Adjusted EBITDA ($ millions) $61.9 $59.5 $61.2 $73.0 $26.7 $66.2 $51.3 $53.1 $36.8 Paperboard shipment
Slide 20: Major Maintenance Schedule
$2 $10 $22 $4 $20 $17 $5 $7 $28 $30 $24 $27 $6 $30 - $35 2017 2018 2019 2020 2021 2022 2023 2024e 2025e Q1 Q2 Q3 Q4 Total $34 MAJOR MAINTENANCE SCHEDULE ADJUSTED EBITDA IMPACT ($ IN MILLIONS) 1. This information is based upon management’s current assumptions and estimates. 2. See “Forward-Looking St
Slide 21: Reconciliation of Adjusted EBITDA
RECONCILIATION OF ADJUSTED EBITDA ($ IN MILLIONS) Year ended Year ended Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Net income $ 16.6 $ 14.7 $ 20.6 $ (5.9) $ 46.0 $ 23.8 $ 29.7 $ 36.6 $ 17.6 $ 107.7 Income tax provision (benefit) 6.0 4.4 18.9 (2.3) 27.0 8.4 10.2 11.0 6.
Clearwater Paper — Investor Presentation (March 2024) on 6ix