Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Sidoti Small Cap Conference (December 2023)
11 slides from Rayonier Advanced Materials's conference presentation, Dec 7, 2023
Slide 1: Sidoti Small Cap Conference
Sidoti Small Cap Conference December 7, 2023
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 RYAM’s future events, developments, or financial or operational per
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations and adjusted net debt. The Company believes these non-GAAP financial measu
Slide 4: Who is RYAM
Who is RYAM BUSINESS DESCRIPTION ⎔ For over 95 years, RYAM has developed a platform that produces natural cellulose fibers which create value in a diverse range of products – Leading global supplier of high purity cellulose specialties products – Sole producer of 3-ply paperboard in North America –
Slide 5: RYAM Is Everywhere
RYAM Is Everywhere Food Fluff Personal Hygiene Ethers Pharmaceuticals Industrial Lignin Biomaterials Filter Bioenergy Acetate Plastic Packaging LCD/Film Paperboard Lottery Tire Cord Commercial Print Casings Filtration Packaging Other CS High-Yield Nitrocellulose Paperboard Pulp Microcrystalline Prin
Slide 6: Business Overview
Business Overview ENTERPRISE REVENUE AND EBITDA REVENUES ($ Millions) 2022 Revenue by Product Cellulose Specialties $1,717 $1,721 8% Fluff $1,431 $1,408 15% Biomaterials / Other $1,344 Paper Pulp / Other 3% 50% Viscose 5% Paperboard 7% High-Yield Pulp 12% 2019 2020 2021 2022 Q3'23 LTM EBITDA ($ Mill
Slide 7: Key Focuses
Key Focuses ADDRESSING CONCERNS TO DRIVE VALUE ⎔ Plan to address balance sheet: – Target debt reduction of $70 million in the next year through Free Cash Flow generation and passive asset sales – Potential to sell Paperboard and High-Yield Pulp assets to further reduce debt – Refinance 2026 maturiti
Slide 8: The Pathway to Address Capital Structure
The Pathway to Address Capital Structure FOCUS ON REFINANCING NEAR-TERM MATURITIES ⎔ Target to refinance 2026 Notes in 2024: Q3 2023 Maturity – Reduce debt by ~$70M through free cash flow and monetize ABL - Dec-25 passive assets Sr Secured Notes 465 Jan-26 – Flexibility to refinance the 2026 Notes a
Slide 9: Actions to Manage Debt Covenant
Actions to Manage Debt Covenant ⎔ Current net secured leverage 4.4x vs 4.5x covenant – Q3 LTM Covenant EBITDA of $170M – Secured net debt of $743M ⎔Sequentially Higher EBITDA for Q4 supports positive free cash flow – Q4 LTM Covenant EBITDA of $160M based on updated guidance – Target secured net debt
Slide 10: Biomaterials: Portfolio
Biomaterials: Portfolio 1 PORTFOLIO 1 HIGHLIGHTS ⎔ Exciting portfolio with exceptional returns – Portfolio 1 is expected to return $42M in EBITDA Tartas, France Commencement Fernandina, USA early 2024 and $100M in revenue by 2027 ⎔ Capex requirements of $100 Million Tartas, France (Liquid) – 85% fin
Slide 11: RYAM's Compelling Proposition
RYAM’s Compelling Proposition STABLE CORE & EMERGING BIOMATERIALS DRIVING EBITDA GROWTH Existing Business • Margin Expansion HIGHLIGHTS • Supply/Demand Balance • Reduced Commodity Exposure Stable Core CS Business Strong product mix with diverse end-markets Biomaterials Phase 1 ~1% CAGR Appealing Gro
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