Good morning, and thank you for standing by. Welcome to today's Sylvamo Corporation Investor Day 2021 call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question- and- answer session. Senior Vice President, Corporate Affairs. Please go ahead, sir. Thank you, Stephanie. Good morning, everyone, and good afternoon to our European colleagues. Thanks for joining us today for Sylvamo's Investor Day. Slide four features today's discussion leaders. Upfront, we'll hear from Jean-Michel Ribieras, our Chairman and Chief Executive Officer, and John's 35-year paper and packaging career spans three continents and multiple businesses. Jean-Michel has lived in and led all three Sylvamo regions. He has been the international team. He was elected Senior Vice President and President of IP's Europe, Middle East, and Africa. In 2016, Jean-Michel was named Senior Vice President of Global Cellulose Fibers, where he led the integration of Weyerhaeuser's Cellulose Fibers business. Most recently, he served as Senior Vice President of IP's Industrial Packaging business. Paper in 1994, after serving as an officer in the United States Navy. He has been an International Paper Officer since 2008, and in 2016, and President, Europe, Middle East, and Africa. John has served as Vice President of Strategic Planning, Vice President and General Manager of North American Papers, and Vice President of Finance. Recently, he served as IP's Senior Vice President of Corporate Development. Later on, we'll introduce our regional leaders, Oliver, Rodrigo, and Greg, our Senior Vice Presidents.[Inaudible] shows our agenda for today. Jean-Michel will provide a company overview, followed by John Sims, who will present our investment thesis. Our General Managers will provide overviews of each region, and then John will come back for a financial review. Following that, we'll host a question- and- answer session. Before we begin, first, we ask that you do not view Sylvamo only through a North American lens, but rather through a global lens. We have a strong U.S. business, but many of our ton of our earnings are in Europe and Latin America. Second, we believe in the promise of paper. We believe uncoated free sheet demand will continue to grow in Eastern Europe and Latin America. In all regions of the world, uncoated free sheet is sustainable, affordable, and functional. Third, we compete in mature demand segments, yet remain confident in our ability to create long-term shareowner value. We will explain how our key competitive advantages position us for long-term success. Finally, above all else, Sylvamo is a cash flow story. Cash flow is the basis for creating shareowner value. We will demonstrate our ability to generate robust and resilient free cash flow. With those points in mind, please welcome our Chairman and Chief Executive Officer, Jean-Michel Ribieras. Thanks, Tom. Good morning, good afternoon, everyone. We appreciate you joining us this morning. I'm on slide seven. We are Sylvamo, the world's paper company, Zuber, with annual revenue exceeding $3 billion. Uncoated free sheet accounts for 89% of our total volume. Over the last 12 months, we generated $463 million in adjusted EBITDA and $363 million of free cash flow, despite the significant economic impact of the global COVID pandemic. As Tom mentioned, we have a strong U.S. business, but we generate more than 70% of our profit in Europe and Latin America. We have outstanding assets, including low-cost mills and 3.5 million tons of capacity. We also have an offtake agreement with International Paper for 687 tons of paper produced by IP Georgetown and Riverdale Mills. Slide eight summarize why we believe in Sylvamo is a compelling story. Commercially, we have a significant competitive advantage, most notably our iconic brands, strategic channel partnerships, and best-in-class commercial teams. Operationally, we are building on IP's operational excellence. The foundation of our success is our low-cost mills in attractive locations, our captive Brazilian forest land, our best-in-class operators, and our advanced safety, environmental, social, and governance practices. With respect to financial discipline, we expect continued, robust, and resilient free cash flow to create shareowner value. Our first priority is debt reduction. We will shift our focus to returning cash to shareowners. Each of our senior leaders has been in the paper business for at least 25 years. We know this business well. We understand it at the detail level in all three regions. Slide nine shows our three-pronged strategy of commercial excellence, operational excellence, and financial discipline. Our strategy starts with engaged employees helping our customers succeed. We know this business, our customers, and their end users. We use that knowledge to remain the supplier of choice and to drive sales and earnings. Our mills operate safely, responsibly, sustainably, and efficiently to produce low-cost, high-quality products. We will use the cash generated by our commercial and operational results to maintain a strong balance sheet, invest in our strengths and return cash to share owners. Our strategy focuses on leveraging our key competitive advantages. It does not focus on the need to convert our mills or acquire additional assets. Slide 10, please. We believe in uncoated papers. Uncoated free sheet is sustainable, affordable, and functional. Paper will remain an effective vehicle for education, communication, and entertainment. Cellulose fiber or primary raw materials comes from trees, which are a renewable resource. We generate more than 75% of our mill energy from carbon neutral biomass residuals. At the end of use, paper is one of the most recycled materials in the world. Uncoated paper plays a critical role in education. Studies continue to show that students of all ages absorb more when reading on paper versus reading on electronic screens. Slide 11, please. The use of uncoated papers is universal. Copy papers, forms, file folders, envelopes, notebooks, and many other products are used extensively in all industry, especially in healthcare, education, finance, insurance, and all government services. While data continue to move digitally, paper-based records serve as backup security for online data, and paper-based marketing remains effective. For example, in the United States, direct mail marketing experiencing a recovery. According to the United States Postal Service, in their fiscal third quarter of 2021, marketing mail revenue grew by $1 billion, or nearly 40% versus the prior year. Direct mail marketing has historically been a resilient marketing channel and has reestablished its value with many U.S. businesses that use a combination of investments in data and technology in their direct mail campaigns. Let's look at slide 12 to understand why uncoated free sheet is the largest and most resilient of all graphic paper grades. What separates uncoated free sheets? It's quite simple. Uncoated free sheet has the highest number of end-user application. This is why the total demand for uncoated papers exceeds the sum of all the other printing and writing grades combined. Slide 13 shows our pre-pandemic and pandemic earnings and free cash flow. Despite losing a significant amount of demand due to global COVID restrictions over the last 12 months, we generated an adjusted EBITDA of $463 million and $364 million in free cash flow. In the first half of this year, more evidence of the continuing recovery are apparent. Demand recovery continued and as pricing started to recover, we generated adjusted EBITDA of $247 million and $190 million of free cash flow. It is important to note that we expect the second half earnings to be better than the first half results, reflecting the flow-through of volume and price recovery and continued GDP recovery. Each month, our results show the benefits of back to school and more return to office demand. Slide 14 shows our profit mix by region. Over the last six months, we generated 29% of our operating profit in North America and 71% in Europe and Latin America. This regional diversification and our strong supply position in all the three regions, plus synergies across our regions, are key to our success. Key to export across the region. Others involve innovation and e-commerce positioning. That's why it's important to view Sylvamo as the sum of strong commercial. We are much more than a strong North American company. Slide 15 provides a snapshot of our operations. We have two low-cost premium mills. As I mentioned, we also have a 10-year agreement to sell the product produced at IP Georgetown and Riverdale mills. An exclusive agreement to sell its uncoated free sheet production. Our Brazilian forest land are a key component of our low-cost position in Brazil. Rodrigo will provide additional information of this later on. Let's turn to slide 16. Our employees, customers, and other key stakeholders know that Sylvamo is about more than just sales, earnings, and shareowners returns. Our commitment to people and our planet is embedded throughout Strategy. Our most important responsibility is to ensure that all employees and contractors return home safely at the end of each day. We improve people lives, the planet, and our company performance by transforming renewable resources into papers for education, communication, and entertainment. We have assembled an outstanding governance team. Eight of our nine directors are independent and have diverse and extensive experience in all disciplines across many industry. They also have extensive experience with international operations and spin-offs. Slide 17 shows how an uncoated free sheet company can generate robust and resilient free cash flow. We compete in the most attractive regions with talented and experienced teams and leverage our many competitive advantages. We are the largest producer in Brazil and Russia, and a strong number two in North America. We are a low-cost producer in all region. We have opportunities to further reduce our costs through high return investment that offers internal rates of return greater than 25%. Next, John will review our investment thesis. Thank you, Jean-Michel. Good morning, everyone. Thanks for joining our call. We do appreciate your interest in Sylvamo. I'm going to take the next few minutes to explain why we believe Sylvamo is a compelling investment. Let's turn to slide 19 and look at our investment thesis. Our investment thesis is built on the knowledge that people around the world will continue to use our paper for education, communication, and entertainment. The use of uncoated free sheet is universal. Businesses, schools, and governments have used and will continue to use uncoated free sheet. As Jean-Michel explained, we will execute a three-pronged strategy to leverage our strengths and build on our key competitive advantages. Our unique combination of strong supply positions and low-cost mills in attractive regions will enable us to continue to generate substantial free cash flow. We will use that cash to strengthen our balance sheet, reinvest in our core capabilities, and return cash to shareholders in order to grow the equity value of Sylvamo on a per-share basis. Let me repeat this because I think it's important. We're going to leverage our strengths to generate significant cash flow, so we can create shareholder value by growing our equity on a per-share basis. We're going to do this by reducing our debt to less than 2.5x, so we have the balance sheet and the flexibility to invest in high return, quick payback projects to grow our cash, and be in a position when our board approves it to return cash to our shareholders. I've talked about the promise of paper being core to our investment thesis. Let's discuss demand post-pandemic. As you know, the original COVID restrictions in the spring and summer of 2020 led to significant declines in paper demand. Copy paper demand in North America and Europe decreased significantly more than any other uncoated grades, such as offset and envelope papers. Because big consumers of copy paper, including schools and offices, shut down around the world, this was unusual given that copy paper is typically the more resilient segment of uncoated papers, even during economic downturns. Importantly, as schools and offices began to reopen, we expected copy paper demand to return, and that's what we are experiencing starting in the spring of this year. As you know, many offices remain essentially closed, there is more demand recovery to come. Having said that, though, we do expect that more people will work from home after the pandemic, especially for large companies, and this will reduce copy paper demand in mature economies going forward. Print advertising was also significantly curtailed during the 2020 COVID restrictions. Now that businesses have reopened and travel is resuming, uncoated free sheet demand for print advertising is also recovering. We easily project continued demand growth in Eastern Europe and Latin America because a key driver for uncoated paper demand in these regions is GDP. As GDP increases in these regions, white collar employment grows and people use more financial, professional, and other services that drive uncoated paper demand. I said we operate in attractive regions. Slide 21 shows why we consider our regions attractive. Although we are the third largest supplier in Europe, we have the largest supply position in Russia, given our agreement with Ilim. Russia is an attractive location from which to serve Eastern Europe and the Commonwealth of Independent States. We are also the largest producer in Latin America and have a strong number two supply position in North America. Our low-cost mills and strong supply positions make these regions very attractive. At the bottom of the slide, you can see the projected demand by region, which reinforces the attractiveness of Eastern Europe and Latin America. Our regional leaders will provide more detail on their respective businesses and how we create value for customers and shareowners in these attractive regions. Let's go to slide 22, please. Brands are a differentiating advantage we have. We produce the iconic brands that consumers demand. These brands are the key reasons why we have outperformed the industry demand by an average of 120 basis points over the last six years. Chamex enjoys unparalleled brand recognition throughout Latin America. Our distributors are exclusive there. The only branded copy paper they sell is Chamex. SvetoCopy was the first branded paper produced in Russia and has strong brand loyalty. Since 1992, SvetoCopy has become synonymous with copy paper in Russia. Hammermill has deep roots in North America that go back more than 120 years. The Hammermill brand enabled us to secure a leading position in copy paper on Amazon's business e-commerce site. In addition to our own brands, we have the exclusive rights to manufacture HP Papers, which we sell in more than 75 countries. Our decade-long relationship with HP allows us to develop new products with HP. We believe that we can drive volume and profitability by further enhancing our brand position across the region. Moving to slide 23. We have long-term, committed channel partners and customer relationships, some of which began more than 100 years ago. We sell our products through merchants, office product suppliers, retailers, dealers, mass merchandisers, and e-commerce channels. We also sell directly to converters who convert our products into envelopes, forms, file folders, packaging products, and many other end uses. It is important to note that not only do we have significant supply positions in the regions we serve, we are aligned with the channel partners that have leading positions in their own portions of the value chains. This winning combination of premier producer and premier channel partner is another reason why we continue to outperform the industry demand. We believe that we can work with our strategic channel partners and loyal customers to tap into growing pockets of demand in the select regions we operate. Slide 24 shows the global cash cost curve for uncoated free sheet rolls. Nearly all of our capacity, as you can see, is in the first quartile, which on average has a $400 per ton cost advantage versus the fourth quartile mills. It is one thing to be positioned in attractive markets. It's altogether another thing to have the advantages we have and be the low-cost producer in those markets, and that's what Sylvamo has. Our low-cost mills, which are the green bars, generate strong local margins and can export profitably. Our low-cost positions are particularly important given that we have exposure to regions with secular demand erosion. Historically, as demand declines, producers have shut down high-cost mills and converted other mills. Assuming these trends continue, operating rates will improve, and as a result, we expect to be able to improve margins and cash flow despite stable or eroding industry demand. Três Lagoas is depicted as a high-cost mill, but is not. This mill is attached to another company's pulp mill, but this cost curve does not recognize the contractual rights we have for pulp energy, steam, and certain Brazilian tax benefits we get. When these favorable benefits are included, Três Lagoas cash costs are similar to Mogi Guaçu's cost, far on the left. Our Ticonderoga and Saillat mills are shown in the orange bars. These mills produce premium grades and are low-cost mills for the products they produce. We have a 10-year supply agreement with IP that allows us to buy and sell all the uncoated free sheet and specialty papers produced at their Georgetown and Riverdale mills. This agreement, which includes 680,000 tons of capacity, is very attractive to Sylvamo, as we'll only pay for the cash manufacturing cost for these products. Therefore, we will realize the full cash contribution margins of these volumes. Additionally, we'll not be responsible for any maintenance capital for these paper machines. Slide 25 shows our operating profit improvement by region. As you can see, our operating profits for the first six months of this year have increased $98 million versus the same period last year. Our 2020 demand was about 25% less than 2019. Our demand has snapped back, and since the second quarter of this year, all our mills across all the regions are running at full capacity. Our Latin America operating profit has improved the most because we've achieved faster price recovery than in Europe and North America. Our North America earnings improvement was driven by volume recovery. North America and Europe still had some lack of order downtime in the first quarter of this year. Our operating profit recovery in Europe has lagged since we did not begin to realize the benefit of price increases until the second quarter, and we'll see that in the third and fourth quarter. In the second half of this year, we expect additional realization of prior price increases in Europe and North America, which after full realization, will more than offset inflation of chemicals, energy, and distribution costs. Let's move on to slide 26 and take a look at our free cash flow. Our business has been pressure tested over the last 18 months of the COVID pandemic. The recovery is underway. As I mentioned, COVID restrictions reduced paper demand significantly in 2020, yet we still generated $284 million in free cash flow in the worst economic conditions since the Great Recession. Now we're running at full capacity and beginning to realize prior price increases. We are still in the process of realizing the benefit of those increases, yet our first half margins are already approaching 2019 levels. In the first half of this year, while still in the middle of the pandemic, we generated $190 million in free cash flows. We expect to have approximately 44.2 million shares outstanding. Looking at the chart on this page, you can do the math and see the cash we would have generated on a per-share basis. I'll wrap up my comments on slide 27, which summarizes our key competitive advantages, which is why we believe Sylvamo is an attractive investment. We have low-cost mills in the most attractive, highest margin regions for uncoated papers. We produce iconic brands, which we sell through strategic channel partners. We take advantage of cross-regional synergies, which is something no other uncoated producer has the ability to do. Our best-in-class commercial and operational teams drive our success. These strengths make us confident in our ability to generate robust free cash flow and to create long-term value for our customers and shareholders. Now it's time for a regional overview, so I'll turn it over to Tom to introduce our regional general managers. Thanks, John. Let's hear from each of our regional leaders, who will provide more color on how Sylvamo is positioned in the most attractive regions for producing and selling uncoated free sheet papers. Oliver Taudien has been with IP for 26 years. He has held leadership roles across multiple geographic regions in finance, strategy, information technology, and general management. Most recently, Oliver served as IP's Chief Financial Officer and Strategy Director for Europe, Middle East, and Africa. In 1993, Rodrigo Davoli started his career with Champion International, which merged with IP in 2000. Rodrigo has held a variety of leadership positions in finance, strategic planning, marketing, sales, and general management. Most recently, he served as IP's Vice President, Latin American Printing Papers, and President of International Paper, Brazil. In 1982, Greg Gibson joined Champion International. During his career, Greg has held a variety of sales, marketing, and general management roles. He served as vice president and general manager for multiple IP divisions, including North American Papers, European Papers, European Packaging, and Coated Paperboard. Most recently, Greg served as IP's Vice President and General Manager of North American Papers. Okay, let's start with Europe. Oliver? The supply in Europe, most importantly, the largest supply in Russia. Our Svetogorsk, Russia mill is a low-cost uncoated free sheet mill. We also have an exclusive joint marketing agreement with Ilim, the largest pulp and paper company in Russia, to sell their uncoated free sheet in Russia and to export markets. Our Saillat mill in France produces premium copy paper, and is a relatively low-cost producer of these products in Europe. Decades track record there with a strong local management team. We have navigated various economic and political conditions and have generated consistent cash flow. We have limited exposure to foreign exchange rate fluctuations. Second, our SvetoCopy brand has the strongest supply position and brand loyalty in Russia. Third, our Svetogorsk mill is a first quartile cost mill that generates high margins and strong, consistent operating cash flow. Finally, our Saillat mill is the only integrated mill producing premium uncoated free sheet in Europe. Slide 31 shows the supply and demand history and projections for Eastern Europe and Western Europe over three time periods: pre-pandemic, pandemic, and post-pandemic. We recently project supply and demand balances in both regions to tighten over the next few years. Keep in mind that the demand figures do not include export demand. Let's start with Eastern Europe, which is about two-thirds of our European capacity. Eastern European demand is shown by the solid black line on the chart. As you can see, demand in Eastern Europe is projected to grow slightly, driven by a strong rebound in GDP. Recently projects favorable supply and demand. Western Europe is a bit different. It's a mature demand economy. The data show post-pandemic demand recovery, followed by the return to secular demand erosion. GDP recovery mitigates the pressure on uncoated free sheet demand. For both Eastern and Western Europe, recent forecasts sizable capacity reduction, which would lead to rather balanced operating rates. We have already experienced a step change in capacity reduction announcements in 2021, and high-cost mills have taken significant economic downtime. Moving to slide 32 for a little more color on the impact of the pandemic across Europe. We are tracking six key indicators. GDP, white-collar employment, back to school, work from home, electronic substitution, and vaccination rates. In Eastern Europe, the COVID impact on copy paper demand was relatively small and short-term. Current demand is recovering well, and we expect positive demand growth going forward. We expect GDP-driven demand growth to more than offset the impact of electronic substitution and work from home. The low vaccination rate in Russia is a watch-out, but we do not expect major restrictions. In Western Europe, the COVID impact on 2020 demand was more significant, as many countries locked down their economies and sent people home. Demand continued to recover in 2021, driven by solid GDP recovery with the schools reopening and employees returning to offices. High vaccination rates should minimize future restrictions. In Europe, both mills have been running at full capacity since early this year. Slide 33 summarizes our commercial advantages in Europe. Our portfolio is powerful and includes brands requested by end users, consumers, and distributors. We are aligned with the leading channel partners and winning customers. Here you see a few examples of our partners. We continue to focus on further developing attractive segments, including digital printing. We're also pursuing new approaches and developing new channels, such as retail for home office workers. Finally, we are focusing even more on innovation and improving on our value proposition to create even more value for our channel partners and end-use customers. I'll wrap up my comments on slide 34, which focuses on our mills. Svetogorsk is a global low-cost copy paper mill with favorable labor and fiber costs, which enables low-cost exports. Svetogorsk is also the only Russian producer of coated paperboard, primarily for liquid packaging, and also produces bleached chemi-thermomechanical pulp. We consume some of this pulp and sell the excess in Russia, Europe, and Asia. We plan to rebuild or replace two Svetogorsk recovery boilers that are reaching end of life. We estimate a new boiler would cost approximately $220 million. The new boiler, which would be completed in 2025, would replace the two existing boilers, reducing our operating costs and increasing pulp production. The project offers not only solid financial return, but would bring the mill into compliance with best available technology regulation and reduce greenhouse gas emissions. We have not yet sought project approval from our board of directors. Saillat is a relatively low-cost premium mill. It produces high-quality laser and inkjet grades, as well as colors. It also produces market pulp, which we sell in Western Europe. The French Ministry of Ecological Transition selected Saillat and a third-party energy provider to produce 25 MW per year of biomass energy for a 20-year period. Our energy provider is constructing the biomass boiler, which will reduce Saillat energy costs and fossil fuel use. At this point, Rodrigo Davoli will discuss Sylvamo Latin America. Rodrigo? Thanks, Oliver. It is a pleasure to join you from Mogi Guaçu, São Paulo, Brazil, and discuss our business in Latin America. Starting on slide 35. For more than 60 years, we have enjoyed a strong supply position in Brazil and in Latin America. Our 1.3 million tons of production give us the ability to profitably supply our core segments in Latin America and to take advantage of our low-cost position to export around the world. Our eucalyptus trees are key to our high margins. They grow at a fast rate with a six to seven-year cycle, compared to 25 years or more for hardwoods in the Northern Hemisphere. Sylvamo generates its highest margins in Brazil, 20% over the last 12 months, and we expect to continue these high margins. In the first half of this year, the margin increased to 24%. Let's now review slide 36. We have a long track record of leveraging our strategic advantage to generate strong earnings and steady cash flow in Brazil. Let me start with Chamex, the number one brand for copy paper in Brazil and many Latin American countries. Chamex was the first office paper brand in Brazil. Our service levels, superior quality, and strong channel partners make Chamex the strongest brand in Latin America. Today, we export about 50% of our production, with more than 70% of the volume sold in Brazil and throughout Latin America. 100% of our exports are sold in hard currencies, mainly US dollars, providing a natural FX hedge. One key ingredient to our competitive position is access to low-cost fiber, which we get from our own forest lands. We own and manage 100,000 hectares of eucalyptus plantations and natural reserves. I will share more about our forests in a few slides. Slide 37 show RISI projections for uncoated free sheet supply and demand in Latin America. RISI projects demand to grow while capacity declines. As Oliver noted, the demand figures are in-region demand and do not include export demand. As the graphic shows, demand declined in 2014 through 2016 during the worst Brazilian recession in history. Brazilian GDP declined 3.5% for two consecutive years. Demand in our region remains highly correlated to GDP, and with the pandemic, we saw a sharp decline in demand when schools and businesses and offices were closed. With schools and businesses reopening and GDP recovering, we expect increased demand in the region, creating the demand that RISI's forecasting to increase at an average annual rate of 2.2% from 2021 to 2025. It is important to note that as a global low-cost producer, we have always run at full capacity, with the unique exception of the second quarter of 2020, when COVID lockdowns reduced demand quickly and sharply. Moving to slide 38, I will provide a view on the COVID impact and outlook in Latin America. Paper demand is recovering in line with strong GDP recovery across the region. As of August 2021, schools are starting to reopen across Latin America, where education accounts for more than 30% of uncoated free sheet demand. We're very encouraged by back to school and return to offices. Increasing vaccination rates are improving business conditions. More than 90% of our employees have been vaccinated with at least one shot, demonstrating that vaccination programs were very well-adopted by Latin Americans. We expect most countries to be highly vaccinated by the end of this year and also expect continued improvements to overall business conditions. Turning to our commercial excellence slide 39. We're proud of Chamex and Chamequinho, our strong office and school products. I also want to highlight Chambril, which is our brand for printing paper rolls. Chambril products are widely known for quality by printers and converters, and they account for an important portion of our sales. One distribution system, including our partnerships with the leading distributors in Latin America, is one of our key advantages. Our channel partners in Brazil and Latin America bring deep regional knowledge and provide fast delivery of a wide variety of our products. We have dedicated resources to work closely with our channel partners to learn about end-user trends and to offer new products and services, such as e-commerce capabilities to drive sales. Slide 40 highlights our mills, which produce 1.3 million tons of low-cost, high-quality products. Our global low-cost position reflects lean and low-cost teams, world-class paper machine efficiencies, and global low fiber costs. Luiz Antonio and Mogi Guaçu have the flexibility to produce copy paper, office papers, and market pulp. These mills are located close to our eucalyptus plantations. In 2013, we installed a biomass boiler at our Mogi Guaçu mill. This renewable fuel boiler replaced two fossil fuel boilers, reduced purchased energy from 35% to 10%, and reduced new energy costs by 50%. Três Lagoas is our newest mill, built in 2009. It is attached to a large pulp mill, ensuring a consistent supply of low-cost fiber, energy, and steam. Slide 41, please. Our eucalyptus plantations are key to our success. We own and operate 100,000 hectares, and 75% of this is certified forest lands, which provides sustainable, low-cost, high-quality fiber to our integrated mills, which is easier to process into pulp. The pulping process for eucalyptus fiber requires less energy and chemicals than required to process Northern Hemisphere. Our nurseries conduct ongoing research and development to improve growth rates and pulp production yields. Our harvesting model is an industry benchmark. We're using the treetops and bark as renewable fuel for our biomass boilers. Let's hear from Greg Gibson about our North American business. Greg? Thanks, Rodrigo, good morning. Thanks for being with us. I'll provide some color commentary on our North American paper business. I'm on slide 42. We have a strong number two supply position in North America, with the last 12 months revenue of just under $1.6 billion. North America is a strategic region, we remain committed to the uncoated free sheet business. Okay? We're confident in our ability to create value and generate strong free cash flow. Moving to slide 43. Let's discuss. First, we have a strong supply position and meaningful presence in all major uncoated free sheet segments. We span multiple end uses through many different channels. Second, we also have iconic brands, including the best-known copy paper brand, Hammermill, and the exclusive HP Papers. Third, we're well-positioned in all channels and with winning customers. Finally, our low-cost, everyday paper mills and premium grade mills are extremely well-positioned to compete in their respective product categories. History and projections for uncoated free sheet in North America. As the graph shows, supply and demand are currently well balanced. Of course, the demand figures do not reflect export demand. North American demand has eroded over time, primarily due to electronic substitution. Supply has been reduced as well. Two of our largest competitors have been converting uncoated free sheet capacity to containerboard production and plan to convert more. Since 2019, North American uncoated free sheet capacity has been reduced by 1.5 million tons. Uncoated free sheet demand rebounded from the initial and significant pandemic impact in the outer years. Even with this loss of demand, RISI projects favorable supply and demand dynamics to continue. We are America. Moving to slide 45. Let's discuss the COVID impact and outlook. In 2020, by 2021, demand has rebounded and is gaining momentum as the economy strengthens and schools, offices reopen. July industry versus July 2020. Not all segments are recovering at the same rate. Uncoated free sheet used in advertising and direct mail has increased at higher rates, as you heard Jean-Michel talk about. Copy paper driven by schools and offices is improving, has not recovered as quickly as other segments. We're encouraged to see the trends and believe that there's a lot more demand to come, as John referenced earlier. Currently, all of our mills are running at full capacity in the 2Q downtime, which has been an important contributor to our volume growth. We anticipate the improving demand trend to continue. Slide 46 shows some of our commercial advantages starting with the Hammermill and HP brands, which are requested by distributors, end users, and consumers. We are aligned with leading channel partners and winning customers. We continue to focus on further developing attractive demand and digital printing. We are also working on new approaches such as paper-as-a-service and deeper end user selling. Innovation will strengthen our value proposition and create even more value for our channel partners and end users going forward. Slide 47 allows me to highlight one of the key competitive advantages, our number one supply position in e-commerce. Our online sales continue to accelerate and now account for about 10% of our total revenue. As shown on the slide, our e-commerce sales are expected to grow between 2017 and 2023 at a 46% compounded annual growth rate. We estimate that the Hammermill and HP brands account for more than half of the total North American e-commerce paper sales. We have outstanding partnerships with the leading office products retailers, which complement our e-commerce strategy. I'll wrap up my comments on slide 48 with a quick look at our mills. Eastover is the lowest cost uncoated free sheet mill in North America, the lowest cost mill in North America. This is one of the newest and most modern paper mills in North America. Ticonderoga is a terrific low-cost producer of premium grades. These 2 mills produce 1.1. The commercial agreement that you heard John talk about for Georgetown and Riverdale allows us to take care of our customers, maintain our strong position, and generate strong returns. That wraps up our regional discussions, so I will turn it back to John. John? Thank you, Greg, and thank you, Rodrigo and Oliver, for explaining and sharing with us our key competitive advantages in the attractive markets we operate, and showing how we'll continue to generate strong. To slide 50 to look at some key financial highlights. As economic recovers throughout our regions, recovery in our sales and earnings is accelerating. In the first half of this year, we generated $247 million in EBITDA. We expect second half 2021 earnings to improve versus the first half, reflecting the fact that we have been running full since the second quarter, and we expect to continue to do so. Also, we're continuing to realize prior price increases, which though implemented, will not show up in our numbers until the third and fourth quarters. Let's turn to slide 51 for a more detailed discussion of our recovery. Our businesses were impacted significantly by the global pandemic. Our sales and earnings and cash generation continued to recover strongly. One way to measure that recovery is to compare our last 12 months operating profit to our full year 2020 results. Let me pause here because you don't typically see full year results bridged to a mid-year trailing 12 months. $302 million or $98 million higher than 2020. Since the second half of 2020 is common to both profit, this bridge is really a comparison of the first half of 2020 to the first half of 2021. Keep in mind, in the first quarter of 2020, vaccines were just being rolled out in North America and Europe. At that time, Brazil was in the middle of its worst COVID wave. Our selling prices in Europe and North America were lower in the first quarter of 2021 than in the first quarter of 2020. The increase in this bridge is in the second quarter of this year and is primarily a result of higher volumes in all 3 regions. Since the second quarter of this year, there's been less lack of order downtime, so most of this benefit is shown in the operations bar, reflecting a significant reduction in unabsorbed fixed costs that occurred in 2020. This year, we began to realize prior price increases. By the end of the first quarter, we had realized price increases in Russia and Brazil. We started to realize price continued to flow through these increases in the second half. Our last 12-month operating profit is up nearly 50%, with our mills running full and most of the second half earnings improvement will reflect the realization of prior price increases as they continue to flow through. Price increases are fully realized later this year. Our run full volume improvements and price realizations are expected to more than offset inflation in raw materials and structure. We raised $1.5 billion to fund our start as a standalone company. We established a $450 million credit revolver. We also raised $520 million of secured debt via Term Loan B at a very attractive rate, and $450 million of secured debt via the eight-year note. As the table shows, in 2022, we expect a weighted average interest rate of 4.4% or 4.1% net of. Let's turn to the next slide. Looking to the fourth quarter, which will be our first quarter as a public company. This slide provides some selected key metrics. $23 million in one-time costs in the fourth quarter. Most of these costs are IT related. We also expect $8 million in transition services. Once we complete the transition service agreement, we expect the annual dissynergies of being a standalone company to be approximately $15 million. This is less than being allocated to Sylvamo by IP. Let's turn to slide 54 for some additional guidance. This slide includes selected financial metrics in order to help model our earnings and cash flow for 2022. 2022 CapEx will be higher than 2020 and 2021 as we return our maintenance, regulatory, and reforestation capital back to normal levels following the pandemic. We expect $160 million in 2020 CapEx. This does include $15 million for engineering the Svetogorsk's boiler that Oliver talked about, and $6 million related to our new corporate headquarters here in Memphis. The balance, $139 million, is for maintenance, regulatory, and Brazilian reforestation. We expect the 2022 interest expense to be $63 million. We will spend $32 million in one-time costs in 2022 to establish the systems needed to exit the TSA with IP. Through the third quarter of 2022, the transition service agreement with IP will cost $25 million, spread evenly over three quarters. We expect a combination of these non-reoccurring costs of $57 million to be gone in 2023. Slide 55, please. I would like to provide some detail on the contingent liability that we included in our Form 10. The Brazilian tax authorities have disputed deductibility of goodwill from IP's 2007 acquisition of our Luiz Antônio mill. The case is in the first round of judicial court proceedings. We and our advisors believe IP has a strong position in this case, and IP has not taken a reserve. Periodically, Brazil has offered tax amnesty programs to allow companies to resolve such disputes. The Federal Senate recently passed such a bill, but additional approvals are required before that bill becomes law. If the bill were to become a law before the spinoff and IP decides to participate, IP has agreed to pay the first $180 million of any negotiated settlement, and Sylvamo would be required to pay up to $60 million after that, and would be capped at $60 million. If a settlement or judgment to occur after the spinoff, Sylvamo will be required to pay 40% of the settlement or judgment up to a maximum of $120 million. Appendix 63 includes bank covenant restrictions on returning cash to shareholders and other investments, which will remain in place until this contingent tax liability is resolved. We will be able to pay down secured debt without restrictions. I'll conclude my remarks on slide 56. When we speak of financial discipline, we mean creating a strong cash culture at Sylvamo. We intend to maintain a strong balance sheet and adequate liquidity throughout the cycle. We intend to pay down debt and have set a target gross debt to adjusted EBITDA ratio of less than 2.5x, which we expect to get there by the end of 2022. Above all else, we intend to execute our strategy and leverage our key competitive advantages to generate significant free cash flow in order to create value and return cash to shareowners. We expect to reduce debt to begin shareowner return discussions with our board in the second half of 2022. Our target is to continue to outperform the industry volume by 100 basis points-200 basis points. We plan to do so by performing at or above emerging economy demand and outperforming developed economy demand. We plan to leverage our low-cost mills, our iconic brands, our strong customer relationships, and experienced leadership teams to achieve 15%-18% adjusted EBITDA margins and generate strong free cash flow. For incremental investments, we will target returns well above our cost of capital. At this point, we are ready for your questions. I'll turn the call back over to Tom. Tom? Thank you, John. Thanks to all of our speakers. Stephanie, would you remind our callers how to get in the queue for questions, please? As a reminder to ask a question please press star plus the pound key. Again this is star one to ask a question. If you are listening to the live stream please be sure to turn down your volume on your computer speakers as to not cause speak back when your line is unmuted. Thank you, we will pause a moment to compile the Q&A roster. Your first question comes from the line of George Staphos with Bank of America. Thank you. Hi, everyone. Good morning with the transaction. To be fair, I'll ask two questions, then I'll turn it over. I guess the first question I had is really around the new boiler project that you talked about at Svetogorsk. How much, as you're doing this project, will this impact your ongoing EBITDA and operations? There was, at one point, discussion about potentially doing a rebuild as opposed to a new boiler. Where do you stand on that? Is that now decided and you're going ahead with a new boiler? If you went with the rebuild, how much would that cost you from EBITDA over the course of the project? I had a question on growth. Thank you. We're excited about Sylvamo. To your question around the recovery boiler, I think one of your first questions was the impact it would have on the operations. What we were looking at, we are looking at both options, both the rebuilding both of those two recovery boilers or replacing those two with one recovery boiler. The number that Oliver shared with you, the $220 million, assumes the replacement of it. The reason we're heading in that direction right now, although it's not been approved by a board, and we're still in the engineering phases of that, is the fact that, one, it doesn't impact our operations any. You can build the new boilers, and then once you're ready, you just switch it over. On the rebuild option, it would impact the operations. The capital would be less than $220, but not significantly less. It could be only $40 million or $50 million less. However, the operational impact would be more. Now, it would be spread over a longer period of time, but the initial estimates were $100 million to $120 million of lost earnings. That's why we're right now, as I said, we're still in preliminary replacing it. One is also we'll get some benefits from it. As you can imagine, lower maintenance costs, more pulp production. Probably because we've seen other countries. It's not that long ago that China was assuming a very large increase in newsprint consumption, built a lot of capacity, then the market really would grow. Thank you. Hi, George. Jean-Michel. Three great questions. Let me take them maybe a bit separately. When we look at Latin American demand, different from other type of products. Also when the GDP grows, of course, you get more business, more services, more white workers, all of that. Even the preliminary numbers before having a long period of COVID-free or post-pandemic are very good. We're feeling quite because we have such a low-cost position in our Brazilian assets that we can be profitable, deliver anywhere in the world. We really have such assets that they're great. Very long-term agreement and very solid agreement for the pulp side. We have zero worry on that side of the equation. This is a very good agreement. It's a win. Maybe Rodrigo, this is something you could say a little bit more about because this is something you're living every day. Sure, Jean-Michel. Year for us, but so far, we haven't seen any impacts to our productivity or to our eucalyptus growth. We continue to monitor that. Something we follow closely. There's been a lot of studies around eucalyptus. Being more and more efficient in the use of water is part of what we do and part of our energy plan. Hey, Jean-Michel. Thank you. Our next question comes from the line of Mark Connelly with Stephens. Thank you. At or close to capacity, are you going to continue to throttle capacity to keep markets balanced following the traditional IP approach? Hi, Mark, Jean-Michel speaking. I think Eastern Europe, as we've mentioned, we don't take LOD because we've got the opportunity being so much low cost to serve anywhere in the world. We've taken one since Q1 last year because of the full impact of pandemic. For 70% of our earnings, my question is, we have good demand regionally, and we talk more about. We have the lowest cost position also, and we've got the best position in the market. Right now, the market is very tight. The supply and demand. About Sylvamo, we are getting a very good encouraging reception because they are very happy to have a focus and a dedicated supplier to uncoated free sheet to do. I think we have the capacity to long run and to run full with our demand. We will continue to run to orders. Whenever- Did I understand you to say that you'll be buying IP's Georgetown and Riverdale output at IP's cash cost of production? That's correct. That's correct. Perfect. Thank you very much. Thank you. Our next question comes from Gabe Hajde with Wells Fargo. Good morning, guys. Thanks for all the detail. Would it be fair to say that it'd be in your best interest to be running your mills full out, should demand decline quicker than what you think or something like that, and sort of the offtake agreement would be somewhat of the variable or the fulcrum, if you will? We don't look at it this way. Georgetown and Riverdale are important for us. We manage our system as one. We don't have 1 customer to 1 mill. We manage it for multiple mill, optimizing the mix. We don't look at 1 asset differently or less than the other. We look at all the assets the same way. Okay. Thank you. Our next question is from George Staphos with Bank of America. Well, I didn't think I'd get back in queue so quick. Hi, guys. Can you talk about the cost reduction programs that you have across the regions? I would imagine, obviously North America might get more of the focus there. I think you had said it's something around a 20% or 25%. You spent, John, appreciate it, a lot of time talking about the bridge, the waterfall to LTM June. Can you talk about, for the pricing that has been reflected, recognized in the market, how much that would add additionally to your earnings bridge for the second half of 2021? Thank you. I'll take the first question, and move the bridge question to John after that. In terms of projects, first of all, those projects are across the globe. There are a lot of very interesting projects in Latin America and Russia, because even if we are first quartile, we still have opportunity to improve our cost. As of now, in total, I'm not saying we will do that in one year, that's not the intention. In total, we have right now assets about $100 million in total of projects, which have a return above 25%. They would be accretive cash and accretive EBITDA for the company, if we and when we decide to do that. Our first priority is use debt, go below 2.5. We will look at opportunities to grow, how we return to shareholders. We will not forget this opportunity also to get our bottom line better with this project. It's not mostly focused on North America. It's actually very global, and I would say proportionate to our earnings roughly in terms of repartition. John? Thank you. Yeah. George, I'll answer to your second question about the bridge, and I'm glad you asked that. Because of the Form 10, we didn't provide any guidance in terms of the second half. As we said, we expect the second half of the year to be much stronger than the first half. One, because we're running full, and two, because of these price increases that we announced to our customers in the first half, and then we're going to be realizing some of those benefits in the third and fourth quarter. As I shared with you, we're able to implement, and you can see that in the operating improvement in Brazil. We realized some of that on the Brazilian price increases in the first half and also in Russia. I will point you to two things that can help you maybe get a sense for what to expect in the second half from a pricing perspective. The first one is if you looked at International Paper's second quarter earnings presentation. They have a bridge that has second quarter versus first quarter, and that shows a $29 million improvement for Papers second quarter versus first quarter. They did provide guidance for the third quarter, and they mentioned that the Papers business would improve by almost $30 million due to price volume. Now, just one thing to caution you on. All those numbers the International Paper reported did have Kwidzyn in that. Of course, Kwidzyn is not part of Sylvamo, so the momentum we have in pricing in the second half of the year. John, just a definitional one. Given the normal lag, would you more or less have everything in by the third quarter? Thank you for reminding us on the IP presentation. Appreciate that. Or would there be based on normal order of nature, et cetera, that you get some pickup quarter run rates? Thank you. On pricing. Yes, George. We have a different dynamic in all our markets. In Europe, we'll see it spread out also not only in the fourth quarter, but we have to see some benefit of that in the first quarter. To come back to your question, we have a big impact in third quarter, which will fit in third quarter, which will be fully in fourth quarter. The majority of what we've announced and negotiated with customers will be an impact of third, latest fourth quarter. Understood. Thank you. Stephanie? Our next question is from Mark Weintraub. Thank you. Good morning. I just wanted to make sure I understood in terms of your capital needs, which you laid out somewhat on that slide 54, and you talked about 2021 and 2022, and obviously it's a pretty big step up in maintenance, regulatory, and reforestation. I think you mentioned that was getting back more to normal levels, but it was also higher than we saw in 2019 as well as 2020 and 2021. What should we view as your ongoing maintenance, regulatory, and reforestation needs as we go to 2023 and 2024? Then presumably, at least at this juncture, we would just add Svetogorsk on top of that, or is there anything else that we should be conscious of? Yes. Mark, it's John. We provided guidance in the Form 10 that I think is typical, which you should expect in terms of maintenance, regulatory, and reforestation. We capitalize the reforestation of the Brazil and plantations to be between $130 million-$150 million. This actually is pretty typical of what you saw prior to 2019. We are very fortunate that International Paper maintained our facilities well. 2019 is a little bit of an anomaly. It looks like the capital was decreased. There was a reason for that. Mostly all that decrease was actually in Brazil. One of it was we extended the cycles in the plantations from six years to seven years. That means we planted less in 2019. We had less capital for 2019 for the plantation. Then there were some timing issues of regulatory maintenance. In general, when you look at our capital, that $130-$150, it's pretty consistent with what was done actually prior to 2019 for our facilities going forward. Your second question on if we have foreseen another big investment like Svetogorsk, we don't. This recovery boiler and end of cycle, when we look at our mills and look at the different ages and the different investments we've done through the age, we don't foresee in the coming years any other major investment like Svetogorsk recovery boiler. Okay, great. Top expenses that will presumably not run through the P&L are roughly $50 million. I guess we got to figure out what's going to happen with the Brazilian tax. I recognize this is probably something difficult for you to assess, but do you know when we should have visibility on that? Mark, let me say, first of all, I just want to reiterate again that IP didn't take a reserve for this because we are sitting on a really strong case. Back in 2007, Brazilian tax laws allowed you to get the Sylvamo acquisition, that allowed us to depreciate the difference in the book values over a 10-year period. We feel like we're in good standing. Again, I think it's a very low probability that we would have an adverse judgment. To your point in timing of it is hard to say because these amnesty programs that do come out routinely, like as we said, there's one right now, there may be some in the near future that I want to remind you that International Paper is a deciding party since they have 60% of the liability. They'll decide whether we do an amnesty program or not. It's their call. Then there's the judicial process review. That could take years because of the appeal process. I also want to share with you that we don't see this as a big issue. Even because we know that our drive is to reduce our debt leverage. That again, will give us, there are some covenants, but at that point, when we reduce our debt to a 2.5 multiple. Last one from me. As we think about that conversion of EBITDA to cash flow, is there anything else in terms of cash taxes versus book taxes or mix of that wouldn't be in the normally to be expected realm of analysis? Yeah, I think there is one thing that you should be aware of. We mentioned it. As part of that agreement, as of October 1, there will be inventory that's in their facilities and also in our warehouses. So we'll have to pay International Paper for that inventory. The agreement is that we'll begin paying for the inventory starting in January through April, and then starting in April, we'll pay for the Riverdale. All in all, we expect that to be about a $30 million working at normal working one-time cost, which is $55 million in total, but we're going to have $23 million of that in the fourth quarter. Okay. Thanks so much. Again, your next question is a follow-up from George Staphos with Bank of America. Hi, guys. Last one from me. Rodrigo, can you talk about your wood costs, fertilizing that you need to do? I've heard from some of the other producers down there that they've needed to go farther into the forest over time, which has raised wood costs. Should we build in something to our forecast if we get to that point for lower margin and higher costs in Latin America. John, can you just remind us what debt to pay down if you have the cash to do it in the first place? Obviously, you can generate a lot of cash, but what debt would you be able to pay down? Thank you, guys, and good luck. Thank you. Maybe a debt project where we constantly improve our cost also in wood. We're not seeing a major inflation in wood cost due to fertilizer or to change on climate or things like that. You should not expect a change in our EBITDA margin because of major wood cost change. We will keep to be very profitable. Your second question was on the debt, and maybe John take that one. Yes, I'll take that. We can pay down all the secured debt. We can do that immediately. We are restricted in paying down the unsecured bond until the tax issue resolved. The majority of the debt we can pay down, and certainly, the revolver we can pay down. Thank you very much. That was our last question. Tom, I turn it back to you. Stephanie, thank you so much. Thanks to all our speakers, to our callers. One thing before I turn it over to Jean-Michel for a wrap-up. Hans Bjorkman is a 25-year fellow IP employee. He's been running the printing papers business in Europe. He's going to serve as our Vice President of Investor Relations. He's a bit under the weather today, so that's why he's not on the call. Normally, you would follow up with him, but I'll give you my phone number and email. If anybody wants to follow up while Hans is out, you can get ahold of me at 901-834-9976 or at tom.cleves@sylvamo.com, if you want to follow up. Hans will be back with us shortly. With that, I'll turn it over to Jean-Michel to wrap us up. Thank you, and appreciate everybody joining today's call. We started our discussion asking why is Sylvamo compelling, and I want to leave you with these summary thoughts. We are focused on creating shareholder value. Second, we'll use that free cash flow to reduce debt. Third, after reaching our initial target of 2.5 leverage ratio, we will use our free cash flow to be well-positioned to accomplish our plan given our commercial strength, our low-cost mills in attractive region, favorable supply-demand balances, and our ability to create cross-region synergy with product. Thank you for participating in today's Sylvamo Corporation Investor Day 2021 call. You may now disconnect. Speakers, please hold the line.