Sylvamo Corporation · NYSE:SLVM

Sylvamo — ESG Presentation (December 2023)

47 slides from Sylvamo's sustainability presentation, December 2023

Slide 2: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements 2 This presentation contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that
Slide 3: Statement relating to non-U.S. financial GAAP measures
Statement relating to non-U.S. financial GAAP measures 3 While Sylvamo reports its financial results in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), during the course of this presentation, certain non-U.S. GAAP financial measures are presented. Managem
Slide 4: 2022 Environmental, Social and Governance Resources - Available Online
2022 Environmental, Social and Governance Resources - Available Online 4 Click here to access the 2022 ESG Report Additional ESG resources are available on Sylvamo.com © 2023 Sylvamo Corporation. All rights reserved.
Slide 5: Table of Contents
Table of Contents 5 Page I. Company Overview 6 II. Strategy and Value Creation 13 III. Environmental Stewardship 21 and Social Responsibility IV. Corporate Governance 27 V. Executive Compensation 36 © 2023 Sylvamo Corporation. All rights reserved.
Slide 7: Forest Stewardship
Forest Stewardship 7 The roots of our paper business were planted more than 120 years ago We formed “Sylvamo” from the Latin words for forest, “silva,” and love, “amo” We translate this unique combination as “love of forests” Sylvamo speaks to our connection to trees and highlights our role as stewa
Slide 8: The Sylvamo Promise
The Sylvamo Promise 8 We believe in the promise of paper to educate, communicate and entertain. Paper connects us to one another and is an enduring bond to renewable natural resources. Our purpose is to produce the paper you need in the most responsible and sustainable ways. We aim high, innovate an
Slide 9: Our Vision & Mission
Our Vision & Mission 9 Vision To be the world’s paper company: the employer, supplier and investment of choice Mission We transform renewable resources into papers that people depend on for education, communication and entertainment © 2023 Sylvamo Corporation. All rights reserved.
Slide 11: Our Values
Our Values 11 Who We Value What We Value People Ethics We care about people’s health, safety and We hold ourselves and each other to development. We look out for each other to ensure act in accordance with our values. everyone returns home safely each day. We foster We foster a culture of trust, ope
Slide 12: Sustainability, Safety & Culture Milestones
Sustainability, Safety & Culture Milestones 12 • We introduced ambitious people and planet goals that will guide our actions through 2030. • We amended the terms of our financing to include pricing adjustments based on our Sustainability performance against key ESG indicators aligned with our 2030 G
Slide 14: Our Investment Thesis
Our Investment Thesis 14 The World’s Paper Company A Simple, Focused Plan We are the world’s paper company, the: We focus on uncoated freesheet and will create long-term • Employer of Choice value through: • Supplier of Choice • Talented teams • Investment of Choice • Iconic brands We believe in the
Slide 15: Low-cost mills in attractive regions
Low-cost mills in attractive regions 15 Capacity Sylvamo with Georgetown (Million Short Tons) Mills and Riverdale Uncoated Freesheet 2.9 3.5 Market Pulp 0.4 0.4 Total 3.3 3.9 Europe 0.9 Million Latin America 1.3 Million • Nymolla, Sweden • Luis Antonio, Sao Paulo • Saillat, France • Mogi Guacu, Sao
Slide 16: Capital Allocation
Allocating cash to drive shareowner value 16 Maintain Strong Fortified balance sheet Financial Position Dividends Return Cash to Shareowners Capital Opportunistic share repurchases Allocation Maintain low-cost assets Reinvest in High-return projects Our Business Opportunistic bolt-ons © 2023 Sylvamo
Slide 17: 1.5x Gross Debt-to-Adjusted EBITDA as of September 30, 2023
1.5x Gross Debt-to-Adjusted EBITDA as of September 30, 2023 17 Gross Debt $ Million $1,520 $1,397 $1,026 $990 Initial Gross Debt Dec 21 Dec 22 Sep 23 Bonds Term Loan F Term Loan B Term Loan A Revolver AR Securitization 1.2x Net Debt-to-Adjusted EBITDA as of September 30, 2023 Net debt excludes $60 m
Slide 18: Creating significant shareowner value since becoming an independent company
Creating significant shareowner value since becoming an independent company 18 • Reduced debt by $530 million (35%) to < $1 billion Improving our • Achieved adjusted EBITDA to net debt of 1.2x Financial Position • Reduced risk with Russian business divestiture • Earned > $1.3 billion in Adjusted EBI
Slide 19: Strengthening our ability to create shareowner value through the cycle
Strengthening our ability to create shareowner value through the cycle 19 Commercial Excellence Operational Excellence Financial Discipline • Strong supply positions and • Low-cost mills in attractive • Maintain strong financial position iconic brands regions and Brazilian forestlands • Return cash
Slide 20: Our environmental and social practices create value for all stakeholders
Our environmental and social practices create value for all stakeholders 20 Ensure that Sylvamo is a sustainable corporation that creates profits for its shareowners while protecting the environment and improving the lives of those with whom it interacts Sustainable Growth Responsible Use of Resourc
Slide 22: Environmental stewardship and social responsibility are embedded in our culture
Environmental stewardship and social responsibility are embedded in our culture 22 Environmental Stewardship Ensure healthy and productive forest ecosystems Improve our climate impact and our stewardship This Pix to of natural resources top left Social Responsibility Protect and improve the lives of
Slide 23: 2030 Goals Progress: Sustainable Forests
2030 Goals Progress 23 Sustainable Forests Goal: Ensure healthy and productive forest ecosystems Europe Latin America North America • Comptoir des Bois de Brive (CBB) • 100,000 hectares of forestland located • Partnerships conserving, enhancing manages an FSC Group Certificate close to our mills pro
Slide 24: 2030 Goals Progress: Thriving People and Communities
2030 Goals Progress 24 Thriving People and Communities Goal: Protect and improve the lives of our employees, and support our communities Injury-free Workplace Inclusion and Diversity Community Engagement • We put people before paper, always • Promoting a culture where all individuals • $5.3 million
Slide 25: 2030 Goals Progress: Responsible Operations
2030 Goals Progress 25 Responsible Operations Improve our climate impact and our stewardship of natural resources Water Energy/GHG Emissions • ~95% of water used is treated • GHG reduction goal approved by and returned to the local the Science Based Target watershed initiative • Our process water ca
Slide 26: Uncoated Freesheet is sustainable, affordable and functional
Uncoated Freesheet is sustainable, affordable and functional 26 Paper is one of the most recycled materials in the world 71% Europe 67% Latin America 68% North America Source: Paper recycling rates as reported by: European Association representing the paper industry for Europe, “Compromisso Empresar
Slide 28: Board of Directors
Board of Directors 28 Jean-Michel Ribiéras Stan Askren Christine S. Breves Chairman and Chief Executive Officer Director Director Mr. Ribiéras has served as a director since Mr. Askren has served as a director since Ms. Breves has served as a director since March 2021 and our Chairman and Chief Octo
Slide 29: Board of Directors
Board of Directors 29 Karl L. Meyers David Petratis J. Paul Rollinson Director Lead Independent Director Director Mr. Meyers has served as a director since Mr. Petratis has served as a director since Mr. Rollinson has served as a director since March 2023 October 2021 October 2021 Karl Meyers has mo
Slide 30: Our Board of directors possess deep experience in key areas
Our Board of directors possess deep experience in key areas 30 Jean- Stan Christine Jeanmarie Liz Joia M. Karl L. David J. Paul Mark W. James Michel Askren S. Breves Desmond Gottung Johnson Meyers Petratis Rollinson Wilde P. Zallie Ribiéras 6 of 11 CEO Experience       Directors Global Busines
Slide 31: Board Committees
Board Committees 31 Management Development and Nominating and Corporate Board Member Audit Committee Compensation Committee Governance Committee Jean-Michel Ribiéras Stan Askren   Christine S. Breves  Jeanmarie Desmond Chairperson  Liz Gottung Chairperson  Joia M. Johnson   Karl L. Meyers  C
Slide 32: Governance of Environmental Stewardship and Social Responsibility
Governance of Environmental Stewardship and Social Responsibility 32 Board of Directors Audit Nominating & Corporate Management Development Committee Governance Committee & Compensation Committee Chairman & CEO Senior Lead Team Environmental & Social Operational Excellence Governance Steering Team L
Slide 33: Our Board oversees all aspects of risk management
Our Board oversees all aspects of risk management 33 • Primary responsibility for evaluating strategic and operational risk management and succession planning Board of Directors • The Board’s oversight responsibility is informed by management internal audit department reports that provide visibility
Slide 34: Corporate governance highlights
Corporate governance highlights 34 • Ten of eleven directors independent • Board diversity in race and gender, including two women in committee leadership roles • Annual elections and majority voting for directors • Mandatory director resignation policy upon substantial change in principal occupatio
Slide 35: Cooperation Agreement with Atlas Holdings on February 14, 2023
Our Board agreed to enter into a Cooperation Agreement on February 14, 2023 35 • We entered into a cooperation agreement with Atlas Holdings, our largest shareowner • Effective March 1, 2023, we added Karl Meyers and Mark Wilde to our Board, expanding the company's Board to 11 directors • The Board
Slide 37: Our executive compensation is aligned with shareholder interests
Our executive compensation is aligned with shareholder interests 37 • Be market competitive and flexible to react to changing business and industry dynamics • Drive engagement through rewards programs that differentiate individual contributions and motivate Global employees to strive for superior pe
Slide 38: Executive Compensation Governance Practices
Executive Compensation Governance Practices 38 Double-trigger change-in-control severance benefits are two and one-half times Best Practice sum of base salary plus target cash bonus for the CEO and one and one-half times Change-in-Control Benefits sum of base salary plus target cash bonus for SVPs D
Slide 39: Executive Compensation Governance Practices
Executive Compensation Governance Practices 39 In a non-change-in-control event, severance is capped at two times the sum of Limit on Severance base salary plus target bonus for the CEO and one times base salary for senior for Executive Officers vice presidents We require our NEOs to enter into non-
Slide 40: Executive Compensation Program Design and Decision-making Process
Executive Compensation Program Design and Decision-making Process 40 Role of the Management Development and Compensation Committee • Compensation benchmarking process, as well as the companies used for comparison (our CCG) to ensure reasonableness and stability • Overall effectiveness of our executi
Slide 41: 2022 Annual Incentive Plan
2022 Annual Incentive Plan 41 Metrics and Weighting Payout Scale (All Metrics) Achievement Payout 40% Below Threshold 0% Threshold 50% 60% Target 100% Maximum 200% Free Cash Flow Adjusted EBITDA Margin Source: Company proxy filed April 5, 2023 © 2023 Sylvamo Corporation. All rights reserved.
Slide 42: 2022 Long-Term Incentive Plan
2022 Long-Term Incentive Plan 42 ROIC 3-Year absolute Grant Type Performance Share Units Restricted Share Units TSR 3-Year relative (Comp: S&P 600 Small Cap Materials Index) Weighting 60% 40% (vest after 3 years) (vest one-third each year) Metrics and Weighting Payout Scale Absolute Return on Below
Slide 45: Contacts
Contacts 45 Hans Bjorkman Vice President, Investor Relations Investor Relations +1-901-519-8030 [email protected] Adam Ghassemi Senior Manager, Corporate Communications Media +1-901-519-8115 [email protected] © 2023 Sylvamo Corporation. All rights reserved.
Slide 46: Free Cash Flow Reconciliation – Since Spinoff
Free Cash Flow Reconciliation – Since Spinoff 46 3Q23 Since $ Million 4Q21 2022 YTD Spinoff Cash from Continuing Operations $131 $418 $337 $886 Cash Invested in Capital Projects ($22) ($149) ($147) ($318) Free Cash Flow $109 $269 $190 $568 Free cash flow is a non-GAAP measure and the most directly c
Slide 47: Adjusted EBITDA Reconciliation – Since Spinoff
Adjusted EBITDA Reconciliation – Since Spinoff 47 3Q23 Since $ Million 4Q21 2022 YTD Spinoff Net Income from Continuing Operations $29 $336 $204 $569 Depreciation, Amortization, Cost of Timber Harvested 31 125 105 261 Interest (Income) Expense, Net 18 69 28 115 Income Tax Provision 28 131 98 257 Adj

Sylvamo — ESG Presentation (December 2023) on 6ix

Sylvamo — ESG Presentation (December 2023)

Slide 1: ESG Investor Roadshow

Slide 2: Cautionary statement concerning forward-looking statements

Slide 3: Statement relating to non-U.S. financial GAAP measures

Slide 4: 2022 Environmental, Social and Governance Resources - Available Online

Slide 5: Table of Contents

Slide 6: I. Company Overview

Slide 7: Forest Stewardship

Slide 8: The Sylvamo Promise

Slide 9: Our Vision & Mission

Slide 10: Our Overarching Value

Slide 11: Our Values

Slide 12: Sustainability, Safety & Culture Milestones

Slide 13: II. Strategy and Value Creation

Slide 14: Our Investment Thesis

Slide 15: Low-cost mills in attractive regions

Slide 16: Capital Allocation

Slide 17: 1.5x Gross Debt-to-Adjusted EBITDA as of September 30, 2023

Slide 18: Creating significant shareowner value since becoming an independent company

Slide 19: Strengthening our ability to create shareowner value through the cycle

Slide 20: Our environmental and social practices create value for all stakeholders

Slide 21: III. Environmental Stewardship and Social Responsibility

Slide 22: Environmental stewardship and social responsibility are embedded in our culture

Slide 23: 2030 Goals Progress: Sustainable Forests

Slide 24: 2030 Goals Progress: Thriving People and Communities

Slide 25: 2030 Goals Progress: Responsible Operations

Slide 26: Uncoated Freesheet is sustainable, affordable and functional

Slide 27: IV. Corporate Governance

Slide 28: Board of Directors

Slide 29: Board of Directors

Slide 30: Our Board of directors possess deep experience in key areas

Slide 31: Board Committees

Slide 32: Governance of Environmental Stewardship and Social Responsibility

Slide 33: Our Board oversees all aspects of risk management

Slide 34: Corporate governance highlights

Slide 35: Cooperation Agreement with Atlas Holdings on February 14, 2023

Slide 36: V. Executive Compensation

Slide 37: Our executive compensation is aligned with shareholder interests

Slide 38: Executive Compensation Governance Practices

Slide 39: Executive Compensation Governance Practices

Slide 40: Executive Compensation Program Design and Decision-making Process

Slide 41: 2022 Annual Incentive Plan

Slide 42: 2022 Long-Term Incentive Plan

Slide 43: Building a better future for people, the planet and our company

Slide 44: Appendix

Slide 45: Contacts

Slide 46: Free Cash Flow Reconciliation – Since Spinoff

Slide 47: Adjusted EBITDA Reconciliation – Since Spinoff