Sylvamo Corporation · NYSE:SLVM
Sylvamo — 2023 Wells Fargo Industrials Conference
16 slides from Sylvamo's conference presentation, Jun 14, 2023
Slide 1: Investor Update
1 Investor Update 2023 Wells Fargo Industrials Conference June 14, 2023 © 2023 Sylvamo Corporation. All rights reserved.
Slide 2: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements 2 This presentation contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that
Slide 3: Statement relating to non-U.S. financial GAAP measures
Statement relating to non-U.S. financial GAAP measures 3 While Sylvamo reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP financial measures are presented. Managem
Slide 4: Significant accomplishments since October 2021 spinoff
Significant accomplishments since October 2021 spinoff 4 Reduced Risk • Successfully divested our Russian business & Improved our • Reduced debt by >$470 million (30%) to ~$1 billion gross debt Financial Position • Improved gross debt-to-adjusted EBITDA from 3.2x to 1.3x • 20% Adjusted EBITDA Margin
Slide 5: We are executing on our Investment Thesis
We are executing on our Investment Thesis 5 The World’s Paper Company A Simple, Focused Plan We are the world’s paper company, the: We focus on uncoated freesheet and will create long-term • Employer of Choice value through: • Supplier of Choice • Talented teams • Investment of Choice • Iconic brand
Slide 6: Cash Allocation Principles to create shareowner value
Cash Allocation Principles to create shareowner value 6 Maintain Strong Financial Position • ~$1 billion in long-term debt Maintain Strong • ~$100 million operating cash Financial Position • Maintain a strong balance sheet in order to operate and invest throughout the cycle • Retain flexibility to a
Slide 7: Cash Allocation Principles to create shareowner value
Cash Allocation Principles to create shareowner value 7 Return Cash to Shareowners • Strive to increase cash returns over time • Pay a sustainable dividend while Maintain Strong maintaining financial flexibility Financial Position • Opportunistic share repurchases when the share price is <80% of int
Slide 8: Cash Allocation Principles to create shareowner value
Cash Allocation Principles to create shareowner value 8 Reinvest in our Business • Invest in high-return projects Maintain Strong • Investments should deliver well above cost- Financial Position of-capital returns, increase earnings and cash flow • Operate in UFS regions that will provide the opport
Slide 9: Our plan to return ~$125 million of cash to shareowners in 2023
Our plan to return ~$125 million of cash to shareowners in 2023 9 Free Cash Flow Maintain strong financial Return ~$125 million, position and flexibility a 40% increase vs. 2022 $60 Million Incremental Escrow Deposit Opportunistic Dividends Debt Reduction (to enable the return of >$90 Share Repurcha
Slide 10: Expect higher 2H23 Adjusted EBITDA vs. 1H23
Expect higher 2H23 Adjusted EBITDA vs. 1H23 10 • Higher volumes • Improved seasonality and government text book orders in Brazil • End of inventory corrections in Europe and North America • Ramp up of 60,000 TPY new business in North America • $28 million reduction in planned maintenance outages exp
Slide 11: Remain confident in our ability to create shareowner value
Remain confident in our ability to create shareowner value 11 Commercial Excellence Operational Excellence Financial Discipline • Strong supply positions and • Low-cost mills in attractive • Maintain strong financial position iconic brands regions and Brazilian forestlands • Return cash to shareowne
Slide 12: Building a better future for people, the planet and our company
12 Building a better future for people, the planet and our company © 2023 Sylvamo Corporation. All rights reserved.
Slide 13: Appendix
13 Appendix © 2023 Sylvamo Corporation. All rights reserved.
Slide 14: Contacts
Contacts 14 Hans Bjorkman Vice President, Investor Relations Investor Relations +1-901-519-8030 hans.bjorkman@sylvamo.com Adam Ghassemi Senior Manager, Corporate Communications Media +1-901-519-8115 adam.ghassemi@sylvamo.com © 2023 Sylvamo Corporation. All rights reserved.
Slide 15: 2022 Adjusted EBITDA and Margin Reconciliation
2022 Adjusted EBITDA and Margin Reconciliation 15 $ Million 2022 Net Income (Loss) $118 Less: Discontinued operations, net of tax (218) Net Income From Continuing Operations $336 Depreciation, Amortization, Cost of Timber Harvested 125 Interest (Income) Expense, Net 69 Income Tax Provision 131 Adjus
Slide 16: 2022 Return on Invested Capital Reconciliation
2022 Return on Invested Capital Reconciliation 16 $ Million 2021 2022 Net Income From Continuing Operations $336 Special Items Expense (Income) 12 Interest (Income) Expense, Net 69 Adjusted Operating Earnings Before Interest $417 Total Equity $182 $678 Add: Long-Term Debt 1,357 1,003 Add: Notes paya