Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q1 2021 Earnings Presentation
23 slides from Rayonier Advanced Materials's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Financial Presentation Materials
First Quarter 2021 Financial Presentation Materials May 4, 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: Q1'21 Financial Highlights
Q1’21 Financial Highlights Revenue of $465 million; Operating Income of $55 million Revenue by Segment Adjusted EBITDA of $91 million; $64 million improvement from 30% prior year — High Purity Cellulose improved 35% on higher commodity 8% $465 prices and higher CS volumes million 52% — Forest Pr
Slide 6: High Purity Cellulose
High Purity Cellulose Quarter Ended $ Millions Operating Income/(Loss) Bridge 10 Mar 27, Dec 31, Mar 28, 6 2021 2020 2020 5 Key Financials ($ millions) 0 Net Sales $250 $294 $250 Operating Income/(Loss) 6 (3) (5) (5) Adjusted EBITDA 35 28 26 (5) (10) Q1'20 Price Volume / Cost SG&A / Q1'21 Sales Mix
Slide 7: Forest Products
Forest Products Operating Income/(Loss) Bridge $ Millions Quarter Ended Mar 27, Dec 31, Mar 28, 80 61 2021 2020 2020 60 Key Financials ($ millions) 40 Net Sales $147 $137 $82 20 (1) Operating Income/(Loss) 61 60 (1) 0 Adjusted EBITDA 63 42 1 (20) Q1'20 Price Volume / Cost SG&A / Q1'21 Sales Mix Othe
Slide 8: Paperboard
Paperboard Operating Income/(Loss) Bridge Quarter Ended $ Millions Mar 27, Dec 31, Mar 28, 8 2021 2020 2020 6 6 Key Financials ($ millions) 5 Net Sales $48 $49 $50 4 Operating Income/(Loss) 6 4 5 2 Adjusted EBITDA 10 8 9 0 Q1'20 Price Volume / Cost SG&A / Q1'21 Sales Mix Other Paperboard - Volume an
Slide 9: Pulp & Newsprint
Pulp & Newsprint Pulp & Newsprint Operating Income/(Loss) Bridge Quarter Ended $ Millions Mar 27, Dec 31, Mar 28, 0 2021 2020 2020 (2) Key Financials ($ millions) (4) Net Sales $39 $45 $47 (6) Operating Income/(Loss) (6) (8) (6) (6) (6) (8) Adjusted EBITDA (4) (6) (4) (10) Q1'20 Price Volume / Cost
Slide 10: Consolidated Operating Income/(Loss)
Consolidated Operating Income/(Loss) ($ Millions) Bridge Q1 2020 to Q1 2021 70 60 55 50 40 30 20 10 (12) 0 (10) (20) Q1'20 Price Volume / Cost SG&A / Q1'21 Sales Mix Other Operating Income of $55 million; up $67 million from prior year Significant improvement to lumber prices in Forest Products
Slide 11: Lumber and Newsprint Sale
Lumber and Newsprint Sale ~$214 million Purchase Price, subject to inventory adjustment, plus additional C$8 million for chip off-set 85% of Purchase Price paid in Cash & 15% in GreenFirst equity RYAM retains rights to any potential reimbursement of Softwood Lumber duties and interest paid unt
Slide 12: BioFuture of Rayonier Advanced Materials
BioFuture of Rayonier Advanced Materials Leading manufacturer of Cellulose Specialties with differentiated capabilities in viscose and fluff pulp — 4 Manufacturing Sites Fernandina Beach, FL, Jesup, GA, Temiscaming, QC Tartas, France & Temiscaming, QC — Leading R&D Platform for New Product & Bio
Slide 13: Our BioFuture Opportunities
Our BioFuture Opportunities Biorefinery concept 13
Slide 14: Anomera
Anomera A New Platform for Cellulose Technology High-quality Cellulose Nanocrystals sustainably sourced from RYAM High Purity Cellulose Nanocrystals formed into biodegradable microbeads offer a natural alternative for plastic cosmetic texturizing powders Patented nanocrystal presents strategic
Slide 15: Key Investment Highlights
Key Investment Highlights Leader in High-Value Cellulose Specialties Broad and Diversified Portfolio of Cellulose-based Products Leading R&D Platform with New Product & BioFuture Opportunities Proven Ability to Control Costs and Manage Cash Flows Solid Liquidity and Financial Flexibility with No Sig
Slide 16: Appendix
RAYONIER Advanced Materials. Appendix
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is perfo
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Pulp & Forest High Purity Corporate Three Months Ended: Products Paperboard Newsprint Cellulose & Other Total March 27, 2021 Income (loss) from continuing operations $ 61 $ 6 $ (5) $ 7 $ (97) $ (28) Depreciation and amortization 2 4 1 28 1 36 Interest
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Mar 27, Dec 31, 2021 2020 Adjusted Net Debt Reconciliation Debt due within one year $ 17 $ 17 Long-term debt & finance lease obligation 1,065 1,067 Total debt $ 1,082 $ 1,084 Original issue discount, premiums and debt issuance costs 11 11 Cash and cas
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Three Months Ended Mar 27, Mar 28, Adjusted Free Cash Flows: 2021 2020 Cash provided by operating activities of continuing operations $ 38 $ (13) Capital expenditures, net (17) (10) Adjusted Free Cash Flows $ 21 $ (23) 20
Slide 21: Reconciliation of Reported to Adjusted Earnings
Reconciliation of Reported to Adjusted Earnings ($ Millions, except per share amounts) Three Months Ended March 27, 2021 December 31, 2020 March 28, 2020 Adjusted Operating Income (Loss) and Income (Loss) from Continuing Operations Per Diluted Per Diluted Per Diluted (a): $ Share $ Share $ Share Ope
Slide 22: Reconciliation of Forest Products and Newsprint Segments As Reported to Adjusted EBITDA
Reconciliation of Forest Products and Newsprint Segments As Reported to Adjusted EBITDA Year Ended ($ Millions) December 31, 2020 December 31, 2019 December 31, 2018 Lumber Newsprint Total Lumber Newsprint Total Lumber Newsprint Total Adjusted EBITDA Reconciliation Income (loss) from continuing oper
Slide 23: Key Index Pricing
Key Index Pricing Q1’21 Q4’20 Q3’20 Q2’20 Average Average Average Average Product Index* Index Price Index Price Index Price Index Price Cellulose • None • N/A • N/A • N/A • N/A Specialties • Bleached Kraft Fluff • $1,285 • $1,165 • $1,175 • $1,183 High Purity • Viscose Pulp delivered to • $905 • $6
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