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Second Quarter 2025 Financial Presentation Materials August 6, 2025
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2 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 future events, developments or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “target,” “believe,” “intend,” “plan,” “forecast,” “anticipate,” “guidance” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. Forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to various risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances change after the date of this release. The Company has not filed its Form 10-Q for the quarter ended June 28, 2025. As a result, all financial results described in this earnings release should be considered preliminary and are subject to change to reflect any necessary adjustments or changes in accounting estimates identified prior to the Company filing its Form 10-Q. The Company’s operations are subject to a number of risks and uncertainties, including, but not limited to, those listed below. When considering an investment in the Company’s securities, you should carefully read and consider these risks, together with all other information in the Company’s Annual Report on Form 10-K and other filings and submissions to the SEC, which provide more information and detail on the risks described below. If any of the events described in the following risk factors occur, the Company’s business, financial condition, operating results and cash flows, as well as the market price of the Company’s securities, could be materially adversely affected. These risks and events include, without limitation: Macroeconomic and Industry Risks The Company’s business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by geopolitical conflicts and related impacts. The Company is subject to risks associated with epidemics and pandemics, which could have a material adverse impact on the Company’s business, financial condition, results of operations and cash flows. The businesses the Company operates are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can materially adversely affect the Company’s business, financial condition, results of operations and cash flows. Changes in the availability and price of raw materials and energy and continued inflationary pressure could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company is subject to material risks associated with doing business outside of the United States. Foreign currency exchange fluctuations may have a material adverse impact on the Company’s business, financial condition and results of operations. Restrictions on trade through tariffs, countervailing and anti-dumping duties, quotas and other trade barriers, in the United States and internationally, could materially adversely affect the Company’s ability to access certain markets. Business and Operational Risks The Company’s ten largest customers represented a significant portion of the Company’s 2024 revenue and the loss of all or a substantial portion of revenue from these customers could have a material adverse effect on the Company’s business. A material disruption at any of the Company’s manufacturing plants could prevent the Company from meeting customer demand, reduce sales and profitability, increase the cost of production and capital needs, or otherwise materially adversely affect the Company’s business, financial condition and results of operations. Unfavorable changes in the availability of, and prices for, wood fiber may have a material adverse impact on the Company’s business, financial condition and results of operations. Substantial capital is required to maintain the Company’s production facilities, and the cost to repair or replace equipment, as well as the associated downtime, could materially adversely affect the Company’s business. The Company faces risks to its assets, including the potential for substantial impairment of long-lived assets. The Company may be required to recognize a significant non-cash charge to earnings if its recorded deferred tax assets are deemed unrealizable. The Company depends on third parties for transportation services and unfavorable changes in the cost and availability of transportation could materially adversely affect the Company’s business. Failure to maintain satisfactory labor relations could have a material adverse effect on the Company’s business. The Company depends on attracting and retaining key personnel, the loss of whom could materially adversely affect the Company’s business. Failure to meet the Company’s customers’ needs through the development of new products or the discovery of new applications for existing products, or inability to protect the intellectual property underlying new products or applications, could have a material adverse impact on the Company’s business. Loss of Company intellectual property and sensitive data or disruption of manufacturing operations due to a cybersecurity incident could materially adversely impact the business. Regulatory and Environmental Risks The Company’s business is subject to extensive environmental laws, regulations and permits that may materially restrict or adversely affect how the Company conducts business and its financial results. The potential long-term impact of climate-related risks remain uncertain at this time. Regulatory measures to address climate change may materially restrict how the Company conducts business or adversely affect its financial results. Financial Risks The Company may need to make significant additional cash contributions to its retirement benefit plans if investment returns on pension assets are lower than expected or interest rates decline, and/or due to changes to regulatory, accounting and actuarial requirements. The Company has debt obligations that could materially adversely affect the Company’s business and its ability to meet its obligations. Covenants in the Company’s debt agreements may impair its ability to operate its business. Challenges in the commercial and credit environments may materially adversely affect the Company’s future access to capital. The Company may require additional financing in the future to meet its capital needs or to make acquisitions, and such financing may not be available on favorable terms, if at all, and may be dilutive to existing stockholders. Common Stock and Certain Corporate Matters Risks Stockholders’ ownership in RYAM may be diluted. Certain provisions in the Company’s amended and restated certificate of incorporation and bylaws, as well as Delaware law, could prevent or delay an acquisition of the Company, which could decrease the price of its common stock. Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in the Company’s filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company assumes no obligation to update these statements except as is required by law.
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This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations, adjusted net debt, and net secured debt. The Company believes these non-GAAP financial measures provide useful information to its Board of Directors, management and investors regarding its financial condition and results of operations. Management uses these non-GAAP financial measures to compare its performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes. The Company does not consider these non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non- GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in the consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are provided below. Non-GAAP financial measures should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company. 3 Non-GAAP Financial Measures
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4 2025 Challenges CLEAR PATH TO STRONG EBITDA AND CASH FLOW GROWTH IN 2026 AND BEYOND ($ Millions) ⎔ 2025 expected to be trough year with Q2’25 projected as the low point ⎔ Issues outlined above are expected to resolve entering 2026, supporting a return to normalized EBITDA $150-160 $215-235 8 18 12 14 15 7 $200 2025 EBITDA Guidance Tariff Impacts FX Extraordinary Operational Challenges Environmental (Non-cash) 2025 Normalized EBITDA Tariff (Indirect Impacts) PBD/HYP Weakness 2025 Original EBITDA Guide
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5 Tariffs & FX Potentially a Tailwind in 2026 Onwards 2025 tariff-related EBITDA headwind estimated at $21 million ⎔ The company expects that $7 million will be non -recurring based on current tariff policy ⎔ The remaining $14 million reflects indirect impacts on our customers; we are working to mitigate and resolve these, but this potential upside is not reflected in our current outlook Tariff uncertainty largely resolved ⎔ 0% Chinese tariffs on Cellulose Specialties (CS) & Dissolving Wood Pulp (DWP) products; 10% China tariff on Fluff products ⎔ 0% tariffs on U.S. Sales to the European Union (EU) ⎔ 0% tariffs on Canadian imports to the U.S. (USMCA -compliant Paperboard products) Foreign Exchange Headwinds tied to recent U.S. dollar weakness Cellulose Specialties order flows are returning to normal High CS industry capacity utilization allowing product flow to different geographies and customers Potential tariff-driven tailwinds ⎔ Addressing China’s 10% Fluff tariff through DWP Fluff product trials ⎔ Expand fluff products into non -tariff geographies ⎔ 15% U.S. tariff on European Union imports (~5,000 MT of Cellulose Specialties; ~400,000 MT of Paperboard) ⎔ 10% U.S. tariff on Brazilian Union CS imports (~150,000 MT of Cellulose Specialties), 50% on Brazilian ethanol imports ⎔ U.S. Trade Representative (USTR) investigation against Brazil for unfair trading practices (~150,000 MT of Cellulose Specialt ies)
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6 Isolated 2025 Issues Expected to be Resolved 2025 results were impacted by the following isolated items: ⎔ $18 million extraordinary operational issues ⎔ $12 million non -cash environmental charge Extraordinary operational issues totaling $18 million have been resolved ⎔ 20 days of impacted production due to labor strikes & 3 lost days due to Iberian power outage at T artas ⎔ Tartas plant management staffing shortfalls (open roles and resource constraints) ⎔ Exceptionally cold winter weather and equipment warranty issues at Jesup in Q1 ⎔ Fernandina outage temporarily extended to 16 months; restored to standard 12 -month cycle Non-Cash Environmental Charge ⎔ Reflects updated remediation scope at two closed legacy sites; no near -term cash impact
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7 Restore T emiscaming Profitability, Pursue Divestiture in 2026 Updated 2025 EBITDA guidance of $0-(5) million vs. ~$30 million historical ⎔ Guidance & historical EBITDA includes $20 million of custodial site expense due to High Purity Cellulose (HPC) line suspensio n ⎔ Typically require $5 million per year of custodial CapEx in Temiscaming Identified $35 million of opportunities to restore Temiscaming to historical profitability ⎔ Minimize Temiscaming Custodial Site Costs – Third-party consultant reviewing opportunities under new operating footprint ⎔ Improve Paperboard Overall Equipment Efficiency (OEE) & Planning – i.e., reduce grade changes and off -quality output, improve maintenance reliability schedule, etc. ⎔ Advance and Realize New Product Development – New product examples: Freezer Board, Oil/Grease resistant board, HYP Rolled Softwood for absorptive products ⎔ Grow U.S. Paperboard market share to capture volume currently serviced by European competitors facing 15% tariffs Goal: Restore profitability & position the businesses for divestiture in 2026 ⎔ North America Paperboard market has 4 -6% secular growth ⎔ RYAM is the sole producer of 3 -ply board in North America with strong demand given high surface to weight ratio ⎔ Analysts and precedent transactions estimate 5 -7x EBITDA mid-cycle multiple
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8 89 30 30 39 30 $200 (80) $308 $338 2025 Normalized Core Business EBITDA CS Price Increases Cost Inflation Cost Reduction Commodity Exposure Reduction Biomaterials Growth 2027 Run -Rate EBITDA (Core Business) AGE Project 2028 Run -Rate EBITDA (Core Business) ($ Millions) ⎔ Divest Paperboard/High-Yield Pulp businesses and operate RYAM as a pure-play Cellulose Specialties company ⎔ Cellulose Specialties market remains highly attractive, with strong supply-demand fundamentals providing pricing power ⎔ Detailed plan to expand margins by lowering product unit costs every year on a sustained basis ⎔ RYAM controls most of the excess Cellulose Specialties capacity in the industry enabling demand-driven shift from commodity to specialty sales ⎔ Exceptional growth opportunity in biomaterials to recycle capital into high-return projects to create tremendous shareholder value ⎔ Balance sheet and liquidity expected to remain sufficient to internally fund growth initiatives without shareholder dilution ⎔ We believe RYAM’s current stock price does not fully reflect the intrinsic value of its assets or the earnings potential from its growth strategy Plan To Strongly Grow Core EBITDA Over Next 2 Years
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9 Compelling Industry Dynamics & Competitive Advantage RYAM is the leading global producer of Cellulose Specialties ⎔ Highly specialized, non -commodity products ⎔ Long customer qualification periods with high and risky switching costs ⎔ RYAM known for achieving industry leading purity and product functionality, backed by proprietary processes and nearly 100 ye ars of technical expertise Consolidated Cellulose Specialties industry with very high barriers to entry ⎔ Industry consolidation has left RYAM, Borregaard, and Bracell as the main producers with ~80% combined DWP CS market share ⎔ Capacity utilization near ~90% – no expected greenfield expansions, and brownfield projects would require significantly higher m argins ⎔ Debottlenecking capacity expansions expected to be absorbed by organic market growth Cellulose Specialties industry analysts expect 4–6% annual price increases on a sustained basis, outpacing the impact of company’s “all-in” cost inflation Recent tariff disruptions have underscored the market tightness and lack of alternatives for the company's products ⎔ China exemption for Cellulose Specialties/Dissolving Wood Pulp (DWP) products Stable and growing demand for Cellulose Specialties products across economic cycles ⎔ 1% - 3% demand growth across end markets ⎔ Roughly 50% of Cellulose Specialties end use is exposed to non -cyclical sectors ⎔ Cyclical sectors, such as European construction and industrials, have been severely depressed for several years and offer ups ide potential in a mid -cycle recovery
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Structural Cost Reductions 10 ⎔ Cost Reductions – Areas of Focus – Automation → Increased labor productivity by leveraging technology throughout manufacturing & business processes – Efficiency → Lower material usage and improve yield; capture waste heat to reduce energy costs – Reliability → Improve resiliency of production assets through targeted investments ⎔ RYAM’s cost reduction project pipeline is robust – Evaluating additional strategic investments to drive structural cost reductions with similar returns in 2027 and beyond ⎔ $24 million of strategic capital investments required to capture $30 million of cost reductions in 2026 alone ($ Millions) RYAM 2026 Cost Reduction Targets EBITDA CapEx Total Corporate 10$ - Operational Automation 10$ 13$ Efficiencies 9$ 9$ Reliability 1$ 2$ Total Operational 20$ 24$ Total Cost Reduction 30$ 24$
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11 Capture Cellulose Specialties Market Growth RYAM owns most of the Cellulose Specialties excess capacity Analysts forecast Cellulose Specialties market growth of 45,000 MT in 2026 and 35,000 MT in 2027 RYAM is conservatively forecasting approximately $30 million of cumulative incremental EBITDA by 2027, capturing volumes in line with existing market share ⎔ Requalification of Cellulose Specialties production from Temiscaming to other sites, generating ~$5 million per year of EBITD A ⎔ Additional ~10,000 MT per year of Ethers and Other CS sales, contributing ~$10 million per year of EBITDA Potential upside not included in forecast period: ⎔ Outside of the above assumptions in our forecast, Tartas has ~20,000 MT of excess ethers capacity that could drive additional EBITDA upside if European construction markets grow faster than expected – European ethers demand declined by 100,000 – 120,000 MT from 2022 to 2023 – Under this upside scenario, EBITDA could increase by ~$15 million at current prices, with further upside if pricing improves ⎔ RYAM is a leading producer of Nitrocellulose use for munitions and explosives. Rising global defense spending and replenishme nt of munition stockpiles may provide significant upside
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Anatomy of a tree: ⎔ 50% of a tree is dry solids, made up of ~40% cellulose and ~60% other chemical compounds ⎔ RYAM’s biomaterials strategy focuses on monetizing the “other 60%”: – Biofuels/Bioelectricity – Crude Tall Oil (CTO) – Prebiotics Substantial value creation by leveraging RYAM’s existing asset base and infrastructure ⎔ RYAM can build biomaterials projects with low cash investment intensity using its existing infrastructure ⎔ Stable, contracted cash flows allow these projects to justify double -digit EBITDA valuation multiples ⎔ The ability to use leverage, particularly green financing, significantly magnifies the return on RYAM’s equity investment Example: Tartas Bioethanol Project ⎔ ~$40 million project generating $8 -10 million of EBITDA, backed by a 5 -year take-or-pay contract with Exxon at a material premiu m to commodity ethanol, reflective of the unique demand for 2G ethanol products ⎔ Financed with ~$35 million in green credits/grants/loans at ~1.8% interest, and $5 million of RYAM equity ⎔ Based on market comps, RYAM equity Return On Investment (ROI) is over 10x 12 High Return Growth Opportunities in Biomaterials – Lignosulfonates – Turpentine – Biogenic CO2 for eSAF – SAF
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RYAM, through its BioNova Joint Venture with SWEN Capital, is advancing four projects to Final Investment Decision in 2025-2026 (Portfolio 1) ⎔ Fernandina: Bioethanol ⎔ Tartas: CTO BioNova expected to invest $110 million to generate ~$39 million in EBITDA, implying a build multiple of 2.8X ⎔ Based on market comps, RYAM’s equity is expected to achieve a 7x ROI BioNova to be capitalized as follows ⎔ RYAM 80% | SWEN 20%, ownership with committed capital investments of $40 million & $32 million, respectively ⎔ $40 million in long -term committed green debt financing at ~5% interest Outside of BioNova, RYAM anticipates Final Investment Decision for the Altamaha Green Energy (AGE) project in 2025 ⎔ RYAM 49% | Beasley Group 51% ownership ⎔ RYAM expects to contribute ~$40 million towards the ~$500 million total project cost to be spent over the three -year investment period ⎔ Designed to generate 70 Mega Watts (MW) of renewable electricity starting in 2028 to be sold to Georgia Power Company under a 30- year fixed-price power purchase agreement ⎔ RYAM’s share of the AGE pre-tax net income is expected to be $30 million starting in late 2028 ⎔ Based on market comps, RYAM’s equity could yield 10 -12x Return on Investment (ROI) 13 High Return Growth Opportunities in Biomaterials FUTURE BIOMATERIALS PROJECTS EXPECTED TO HAVE SIMILARLY ATTRACTI VE ECONOMICS ⎔ Jesup: Prebiotics ⎔ Jesup: CTO
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14 ⎔ RYAM opportunity to generate strong ROI is driven by its ability to leverage its extensive and unique asset base – Illustratively, RYAM’s Jesup plant alone has an estimated replacement cost of over $4 billion ⎔ Biomaterials initiatives are commercially viable – Market competitors have already validated the product demand and technical viability – With financing in place for portfolio 1, RYAM is positioned to execute on these high-value opportunities ⎔ Multiple potential high-ROI projects are in the evaluation phase to drive ongoing growth beyond 2027 – Memorandum of Understanding with Verso Energy to explore eSAF opportunities in Jesup and T artas, aligned with European Union decarbonization mandates – Memorandum of Understanding with GranBio to assess development of a pilot-scale SAF plant at Jesup Ability to Recycle Capital at Attractive ROI
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Solid Balance Sheet and Liquidity 15 ⎔ RYAM maintains a balance sheet sufficient to fund key growth initiatives without shareholder dilution – $202 million of global liquidity including $71 million of cash – Net secured leverage ratio of 3.8x covenant EBITDA, well within the 5.0x covenant threshold – $40 million of green debt committed by lenders for portfolio 1 ⎔ Proceeds from a Paperboard/High-Yield Pulp divestiture would materially strengthen the balance sheet ⎔ Continued discipline in working capital optimization and free cash flow generation remains a key focus ⎔ EBITDA above $170 million supports free cash flow generation used to: – Reduce leverage – Recycle into high-return growth initiatives – Evaluate capital return opportunities ⎔ Debt becomes callable in 2026; opportunity to significantly lower interest expense and increase free cash flow ⎔ At its targeted 2027 run-rate core EBITDA, RYAM’s core business generates nearly $140 million per year in free cash flow $71 $15 $116 Cash Factoring (France) ABL (North America) $202 Million 15 Total Liquidity Amount Outstanding Interest Rate Maturity ABL Revolver 12 S + 2.0% November-29 Sr Secured Term Loan 698 S + 7.0% October-29 Canada Debt 20 5.5% April-28 BioNova Debt (2) 23 1.8% Various France Debt 35 3.9% Various Other Debt 2 Various Various Gross Debt $ 790 ~10.5% Cash (71) Adjusted Net Debt $ 719 Unsecured Debt (31) Net Secured Debt $ 688 ($ Millions) (1) (1) Increases to S + 7.5% when Net Secured Leverage is above 3.5x (2) Debt assumed by RYAM BioNova S.A.S, excludes $38.4M of committed capital
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16 RYAM’s Compelling Investment Thesis WE BELIEVE RYAM’S CURRENT STOCK PRICE DOES NOT FULLY REFLECT THE INTRINSIC VALUE OF ITS ASSETS OR THE EARNINGS POTENTIAL FROM ITS GROWTH STRATEGY The short term, isolated issues that impacted RYAM are largely behind us: ⎔ Tariffs (direct impacts) ⎔ Extraordinary, non-recurring operational disruptions ⎔ Non-cash Environmental charges and FX remeasurement The underlying fundamentals remain strong, and our growth initiatives are on track: ⎔ Core Cellulose Specialties business expected to continue to grow through above inflation price increases and demand growth ⎔ Margin expansion driven by structural cost reductions and shift from commodity to Cellulose Specialties products ⎔ Compelling growth opportunities in the biomaterials segment ⎔ Ability to recycle capital into high -ROI projects ⎔ Continued deleveraging through internal free cash flow and potential Paperboard/High -Yield Pulp divestiture RYAM’s closest public comp, Borregaard, consistently trades at double-digit EBITDA multiples ⎔ As we scale and execute our strategy, we would expect RYAM’s valuation multiple to drive toward double digits ⎔ Applying a double -digit multiple to our estimated 2027 core, run -rated EBITDA would imply a stock price of up to 8 –10X current levels
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⎔ Q2 2025 Financial Summary: – Revenue of $340 million; -$79 million from Q2’24 – Operating Loss of $1 million; -$29 million from Q2’24 – Adjusted Free Cash Flow of $(52) million YTD – Adjusted EBITDA of $28 million; -$40 million from Q2’24 ⎔ Primary Drivers Impacting Earnings: – Cellulose Specialties: -$22 million – Lower sales volumes due to tariffs and the indefinite suspension of the Temiscaming HPC line, higher key input costs, labor disruptions/operational challenges at Tartas – Paperboard: -$10 million – Lower sales volumes and prices due to indirect tariff impacts and new competitive capacity – High-Yield Pulp: -$9 million – Lower sales prices and volumes and continued demand weakness driven by oversupply in China and macro headwinds ⎔ 2025 Guidance: – Adjusted EBITDA: $150 - 160 million – H2 guidance of $105-115 million – Adjusted Free Cash Flow: $(10) - (25) million – H2 guidance of ~$35 million 17 Financial Highlights Revenue by Segment/Product Cellulose Specialties, 59% Fluff , 15% $340 Million Adjusted EBITDA $ MILLIONS EBITDA Margin % Cellulose Specialties 46 22% Biomaterials 1 17% Cellulose Commodities (2) -3% Paperboard 5 11% High-Yield Pulp (7) -24% Corporate (15) N/A TOTAL $28 8%
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113 130 126 134 111 111 1,715 1,750 1,753 1,748 1,750 1,807 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 0 50 100 150 200 250 Q1 Q2 Q3 Q4 Q1 Q2 Cellulose Specialties ⎔ Net sales decreased $33 million, as a 3% increase in sales prices was more than offset by a 15% decline in sales volumes, driven by tariff-related order pauses in April and May, elevated prior-year sales ahead of the indefinite Temiscaming HPC suspension, and the labor strike at Tartas ⎔ Operating income declined $21 million, primarily due to lower sales volumes, higher key input costs, lower production due to the operational challenges and labor strike at T artas 18 Volume (000 MT) Price ($ / MT) 18 Cellulose Specialties - Volume and Price 50 29 Q2'24 CS Price/ Mix Volume / Sales Mix Cost SG&A / Other Q2'25 $ millions 0 10 20 30 40 50 60 Operating Income Bridge (1) Captures product mix within CS segment (2)(1) (2) Volume/Sales Mix variance reflects fully absorbed costs Quarter Ended Key Financials Jun 28, Mar 29, Jun 29, 2025 2025 2024 ($ millions) Net Sales $208 $201 $241 Operating Income 29 31 50 Adjusted EBITDA 46 46 68 EBITDA Margin 22% 23% 28% 2024 2025
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Biomaterials ⎔ Net sales decreased $2 million due to reduced production caused by operational challenges and labor strike at T artas, which temporarily limited feedstock availability for the bioethanol facility ⎔ Operating income was flat, as higher shared service and ancillary costs were offset by lower production costs 19 Quarter Ended Key Financials Jun 28, Mar 29, Jun 29, 2025 2025 2024 ($ millions) Net Sales $6 $7 $8 Operating Income 1 2 1 Adjusted EBITDA 1 2 2 EBITDA Margin 17% 29% 25% 1 1 Q2'24 Price Volume / Sales Mix Cost SG&A / Other Q2'25 $ millions 0.0 0.5 1.0 1.5 2.0 2.5 Operating Income Bridge
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Cellulose Commodities ⎔ Net sales decreased $26 million, primarily due to a 33% decline in sales volumes primarily due to lower non-fluff commodity sales and the labor strike at Tartas, partially offset by a 7% increase in sales prices driven by market supply dynamics for fluff ⎔ Operating loss improved $12 million due to lower non-fluff commodity losses, lower indefinite suspension charges, and lower key input costs, partially offset by lower production due to operational challenges and labor strike at T artas 20 20 (21) (9) Q2'24 CC Price/ Mix Volume / Sales Mix Cost SG&A / Other Q2'25 $ millions 0 (5) (10) (15) (20) (25) Operating Income Bridge (1) Captures product mix within CC segment (2)(1) (2) Volume/Sales Mix variance reflects fully absorbed costs Quarter Ended Key Financials Jun 28, Mar 29, Jun 29, 2025 2025 2024 ($ millions) Net Sales $59 $75 $85 Operating Income (9) (13) (21) Adjusted EBITDA (2) (2) (4) EBITDA Margin (3%) (3%) (5%) 106 96 95 109 84 64 851 849 830 788 863 911 400 500 600 700 800 900 0 20 40 60 80 100 120 140 160 Q1 Q2 Q3 Q4 Q1 Q2 Volume (000 MT) Price ($ / MT) Cellulose Commodities - Volume and Price 2024 2025
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Paperboard ⎔ Net sales decreased $13 million, driven by a 23% decline in sales volumes and a 3% decline in sales prices, impacted by product mix, shifting customer dynamics tied to tariff uncertainty, and increased competitive activity due to increased EU imports and new US capacity ⎔ Operating income declined $12 million, primarily due to lower sales and higher allocated Temiscaming custodial site costs 39 38 38 44 39 43 37 34 1,459 1,441 1,382 1,384 1,400 1,394 1,321 1,346 650 850 1,050 1,250 1,450 1,650 0 25 50 75 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Volume (000 MT) Price ($ / MT) 21 Paperboard - Volume and Price 12 - Q2'24 Price Volume / Sales Mix Cost SG&A / Other Q2'25 $ millions 0 2 4 6 8 10 12 14 Operating Income Bridge Quarter Ended Key Financials Jun 28, Mar 29, Jun 29, 2025 2025 2024 ($ millions) Net Sales $47 $49 $60 Operating Income - (2) 12 Adjusted EBITDA 5 4 15 EBITDA Margin 11% 8% 25% 2024 2025 2023
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High-Yield Pulp ⎔ Net sales decreased $4 million, driven by a 11% decrease in sales prices and a 7% decrease in sales volumes, reflecting weaker demand, continued oversupply in China, and shipment timing delays to customers in India ⎔ Operating loss increased $8 million, primarily due to lower sales, higher logistics costs, and the increased allocation of Temiscaming custodial site costs39 40 50 45 38 49 48 42 489 504 559 574 559 523 518 509 200 300 400 500 600 700 0 25 50 75 100 125 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Volume (000 MT) Price ($ / MT) 22 High-Yield Pulp - Volume and Price 1 (7) Q2'24 Price Volume / Sales Mix Cost SG&A / Other Q2'25 $ millions (8) (7) (6) (5) (4) (3) (2) (1) 0 1 2 Operating Income BridgeQuarter Ended Key Financials Jun 28, Mar 29, Jun 29, 2025 2025 2024 ($ millions) Net Sales $29 $31 $33 Operating Income (7) (7) 1 Adjusted EBITDA (7) (6) 2 EBITDA Margin (24%) (19%) 6% 2024 2025 2023
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Appendix
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Cellulose Specialties ⎔ 2025 cellulose specialties average sales prices expected to increase mid-single-digit percentage vs. PY ⎔ Sales volumes expected to decline a high-single-digit percentage vs. PY reflecting tariff impacts, accelerated acetate destocking, and the absence of 2024 bridge volumes from the Temiscaming indefinite suspension ⎔ Acetate demand soft due to tariffs, accelerated destocking and lower global cigarette demand; Ethers demand to improve; Other CS demand strong given tight global supply ⎔ Moderate inflation for raw material input and logistics costs ⎔ HPC plants expected to operate at normal levels ⎔ EBITDA Guidance: $232M – $235M Biomaterials ⎔ Projects continue to advance: FIDs on Bionova projects expected in 2025 ⎔ Fernandina bioethanol project continues toward 2025 investment decision based on current legal timelines ⎔ AGE project air permit, EPC agreement, financing, and final investment decision are all expected in 2025 ⎔ EBITDA Guidance: $8M – $10M Cellulose Commodities ⎔ China retaliatory tariffs causing dislocation of Fluff supply relative to demand ⎔ Production shifts toward non-fluff commodities to offset reduced China fluff sales until new DWP fluff product is qualified ⎔ Moderate inflation for raw material input and logistics costs ⎔ EBITDA Guidance: ($15M) Paperboard ⎔ Soft sales volumes due to economic uncertainty; Sales prices expected to decline due to increased supply from new U.S. capacity ⎔ Key input costs are expected to increase due to higher purchased pulp costs, increased allocation of Temiscaming custodial site costs, and tariff mitigation efforts ⎔ EBITDA Guidance: $20M High-Yield Pulp ⎔ 2025 prices and volumes expected to decline due to continued oversupply in China ⎔ Key input costs projected to increase from higher allocation of Temiscaming custodial site costs ⎔ EBITDA Guidance: ($20M – $25M) Corporate ⎔ Corporate costs expected to decline in H2 2025 following ERP completion and Q1’s $12M environmental reserve charge ⎔ Full-year costs will be higher due to the Q1 environmental charge and FX headwinds from a weaker USD ⎔ EBITDA Guidance: ($70M) 24 Market Outlook
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2025 EBITDA Guide Cash Interest Expense Maintenance CapEx Enviro/Tax/ Stock Comp Working Capital France Deferred Energy Liabilities Other Accrued Liabilities Adjusted Free Cash Flow EBITDA: $150 -$160M | ADJUSTED FREE CASH FLOW: ($10) –($25) MILLIO N 2025 Guidance 25 ($ Millions) (1) (2) (3) $150-160 ($10)–(25) $0$5$10 ($85) ($97) (2) Working capital includes AR (net of rebates), Inventory, and AP (3) Payment deferred from actions in 2022 (1) Higher due to the timing of interest payments following the 2024 refinancing and an increase in grid pricing (~$1M) as net leverage rose above 3.5x and lower adjusted free cash flow. Normalized cash interest is approximately $82 million. ($3)–(8) 2ND HALF EBITDA: $105 -$115M | 2 ND HALF ADJUSTED FREE CASH FLOW: ~$35 MILLION
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EBITDA Net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adjusted EBITDA EBITDA adjusted for items management believes do not represent core operations. Management believes this measure is useful to evaluate the Company's performance. EBITDA by Segment Net income (loss) before interest, taxes, depreciation and amortization. Adjusted Net income (Loss) Net income (loss) adjusted net of tax for items that management believes are not representative of core operations. Adjusted Free Cash Flows Cash provided by operating activities adjusted for capital expenditures, net of proceeds from sale of assets and excluding strategic capital. Adjusted free cash flows is a non-GAAP measure of cash generated during a period which is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of our common stock. Adjusted Net Debt The amount of debt after the consideration of the debt premiums, original issue discounts and issuance costs, less cash. Net Secured Debt Adjusted net debt less unsecured debt. Available Liquidity The funds available under the revolving credit facility adjusted for cash on hand and outstanding letters of credit. Definitions of Non-GAAP Measures 26
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($ MILLIONS) Net Sales and Operating Income by Segment 27
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($ MILLIONS) Consolidated Statements of Operations 28
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($ MILLIONS) Consolidated Balance Sheets 29
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($ MILLIONS) Reconciliation of EBITDA by Segment 30
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($ MILLIONS) Reconciliation of EBITDA Guidance 31
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($ MILLIONS) Reconciliation of Adjusted Free Cash Flow 32
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($ MILLIONS) Reconciliation of Adjusted Free Cash Flow Guidance 33
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($ MILLIONS) Reconciliation of Adjusted Net Secured Debt 34
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35 Reconciliation of Adjusted Net Income (Loss) ($ MILLIONS)