Sylvamo : BofA Securities 2025 Global Agriculture and Materials Conference - Fireside Chat

Published: 2025-02-26 07:14:22 ET SLVM

Investor Update

2025 Bank of America Securities Global Agriculture and Materials Conference

February 26, 2025

Statement relating to non-U.S. financial GAAP measures

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. Management believes that these non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better understanding of the impact of various factors and trends on Sylvamo's financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial, operating and planning decisions and in evaluating Sylvamo's performance. The non-U.S. GAAP financial measures in this presentation have limitations as analytical tools and should not be considered in isolation or as a substitute for, or superior to, an analysis of our results presented in accordance with U.S. GAAP. In addition, because not all companies use identical calculations, our presentation of non-U.S. GAAP financial measures in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. These slides, including the reconciliation, are also available on Sylvamo Corporation's website at sylvamo.com.

The following is a list of all non-U.S. GAAP financial measures included in this presentation. See the Appendix for a reconciliation of all presented non-U.S. GAAP measures (and their components) to U.S. GAAP financial measures.

Executing our strategy

Focusing on

Investing to strengthen

Leveraging our strengths

competitive advantages

uncoated freesheet

to drive high returns on

to drive earnings and

paper

invested capital

cash flows

Delivering strong financial performance

Adjusted EBITDA

Free Cash Flow

and Margin

Adjusted Operating Earnings per Share

$721

$607

$632

20%

16%

17%

2022

2023

2024

Adjusted EBITDA and Free Cash Flow figures are in $ millions

$269

$294

$248

2022

2023

2024

$7.84

$7.42

$6.51

2022

2023

2024

~150% Total Shareowner Return since becoming an independent company

Improving our

Financial Position

Delivering on our Investment Thesis

Reinvesting in our Business

Gross debt and net debt-to-adjusted EBITDA as of 12/31/24; All figures reflect our performance as an independent company beginning 4Q21 through 4Q24

Allocating capital to drive long-term shareowner value

>$1.8 billion allocated since becoming an independent company

$347 million in

cash returned to

shareowners

$167

$129

$724

Debt Repayment

$218

Capex

Share Repurchases

$602

Dividends

Nymolla Acquisition (Jan 2023)

$ Million

All figures reflect our performance as an independent company beginning 4Q21 through 4Q24

Investing in the future of our Flagship North America mill - Eastover, SC

Reducing costs while improving efficiency and mix of the most competitive North America UFS mill

Paper Machine

Optimization

New Replacement

Cutsize Sheeter

Woodyard

Modernization

2025

2026

2027

External partner investments

Legend

Initial investments through ramp-up completion

Start-up

>30%

IRR

~$145 million

Capital Investment

>$50 million

Adj. EBITDA / Year

~$75 million

Capital Avoidance

(2025 - 2029)

Investing in the future of our Flagship North America mill - Eastover, SC

Paper machine optimization enabling cost reduction while improving overall product mix

• Investments across the machine allow for speed up

• Enhances paper mix and flexibility across the machines

• Incremental ~60 thousand tons of Uncoated Freesheet

• Investment: ~$100 million

• Start-up: 4Q 2026

Investing in the future of our Flagship North America mill - Eastover, SC

New state-of-the-art cutsize sheeter lowering costs, increasing efficiency and sheeting capacity

• New and more efficient cutsize sheeter replacing an existing sheeter

• Lowering costs, maximizing paper machine trim and providing incremental cutsize volume capability

• Will provide reliability and additional flexibility to better service customers

• Investment: ~$45 million

• Start-up: 4Q 2026

Disclaimer

Sylvamo Corporation published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 12:13:21.089.