UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
March 6, 2019

RAYONIER ADVANCED MATERIALS INC.
(Exact name of registrant as specified in its charter)

 Delaware
001-36285
46-4559529
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

1301 Riverplace Boulevard, Jacksonville, Florida 32207
(Address of principal executive offices and zip code)

(904) 357-4600
Registrant’s telephone number, including area code: 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under The Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under The Exchange Act (17 CFR 240.13e-4(c))
 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 



Item 7.01. Regulation FD Disclosure.

Rayonier Advanced Materials Inc. (the "Company") has prepared presentation materials (the "Investor Presentation") that management intends to use on and after March 7, 2019, and from time to time, in presentations regarding the Company.  The Company may use the Investor Presentation, possibly with modifications, in presentations to current and potential investors, as well as others with an interest in the Company and its business.

The information contained in the Investor Presentation is summary information that should be considered in the context of materials filed with, or furnished to, the Securities and Exchange Commission and other public announcements that the Company may make by news release or otherwise from time to time.  The Investor Presentation speaks only as of the date of this Current Report on Form 8-K.  While the Company may elect to update the Investor Presentation in the future to reflect events and circumstances occurring or existing after the date of this Current Report, the Company specifically disclaims any obligation to do so.

By filing this Current Report on Form 8-K and furnishing the Investor Presentation, the Company makes no admission or representation as to the materiality of any information in this Current Report or the Investor Presentation.  The Investor Presentation may contain forward-looking statements.  See Page 2 of the Investor Presentation for a discussion of certain forward-looking statements that may be included therein and the risks and uncertainties related thereto.

The Investor Presentation is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits

Exhibit
Number
Description
99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
  Rayonier Advanced Materials Inc.
 
       
Dated: March 6, 2019
By:
/s/ Michael R. Herman
 
  Name: Michael R. Herman
 
  Title:
Senior Vice President, General Counsel
and Corporate Secretary
 
 
 
 

Exhibit 99.1
   Granite Considerations---Granite Overview     
 

   Safe Harbor  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 Rayonier Advanced Materials’ 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,” “believe,” “intend,” “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. While we believe these forward-looking statements are reasonable when made, 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 these expectations will be attained and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Our operations are subject to a number of risks and uncertainties including, but not limited to, those listed below. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Report on Form 10-K and our other filings and submissions to the SEC, which provide much more information and detail on the risks described below. If any of the events described in the following risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected. These risks and events include, without limitation: Our businesses we operate are highly competitive and many of them are cyclical, especially in commodity markets, which may result in fluctuations in pricing and volume that can adversely impact our business, financial condition and results of operations; Our ten largest customers represent approximately 35% of our 2018 revenue, and the loss of all or a substantial portion of our revenue from these large customers could have a material adverse effect on us; A material disruption at one of our major manufacturing facilities could prevent us from meeting customer demand, reduce our sales and profitability, increase our cost of production and capital needs, or otherwise adversely affect our business, financial condition and results of operation; Changes in raw material and energy availability and prices could affect our results of operations and financial condition; The availability of, and prices for, wood fiber may significantly impact our business, results of operations and financial condition; We are subject to risks associated with manufacturing and selling products and otherwise doing business outside of the United States; Our operations require substantial capital for ongoing maintenance, repair and replacement of existing facilities and equipment; Currency fluctuations may have a negative impact on our 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, especially with respect to China, Canada and as a result of “Brexit”, could adversely affect our ability to access certain markets and otherwise impact our results of operations; We depend on third parties for transportation services and increases in costs and the availability of transportation could adversely affect our business; Our business is subject to extensive environmental laws, regulations and permits that may restrict or adversely affect our ability to conduct our business; The impacts of climate-related initiatives remain uncertain at this time; Our failure to maintain satisfactory labor relations could have a material adverse effect on our business; We are dependent upon attracting and retaining key personnel, the loss of whom could adversely affect our business; Failure to develop new products or discover new applications for our existing products, or our inability to protect the intellectual property underlying such new products or applications, could have a negative impact on our business; Risk of loss of the Company’s intellectual property and sensitive business information, or disruption of its manufacturing operations, in each case due to cyberattacks or cyber security breaches, could adversely impact the Company; We may need to make significant additional cash contributions to our 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; We have significant debt obligations that could adversely affect our business and our ability to meet our obligations; The phase-out of LIBOR as an interest rate benchmark could result in an increase to our borrowing costs; Challenges in the commercial and credit environments may materially adversely affect our future access to capital; We may need additional financing in the future to meet our 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; and the inability to effectively integrate the Tembec acquisition and meet our financial objectives therefrom, and any future acquisitions we may make, may affect our results. 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 our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.  2 
 

 Non-GAAP Financial Measures  These presentation materials contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted free cash flows, adjusted operating income, adjusted net income, adjusted net income per share, adjusted diluted earnings per share and adjusted net debt. These non-GAAP measures are reconciled to each of their respective most directly comparable GAAP financial measures in the appendix of these presentation materials.We believe these non-GAAP measures provide useful information to our board of directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We do not consider these non-GAAP measures an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they may exclude significant expenses and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expenses and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management provides reconciliations of the non-GAAP financial measures we use to their most directly comparable GAAP measures. 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 
 

 Granite Considerations---Granite Overview  Agenda  9:00 AM  Welcome  Mickey Walsh, Treasurer & VP Investor Relations  9:05 AM  Company Overview & Strategy  Paul Boynton, Chairman, President & CEO  9:30 AM  High Purity Cellulose – Commercial  Dr. Erin Byers, SVP High Purity Cellulose  9:45 AM  High Purity Cellulose – Manufacturing  Bill Manzer, SVP Manufacturing Operations  10:00 AM  Questions & Answer Session    10:15 AM  High Yield Pulp  Ken Duffy, VP Sales & Marketing High Yield Pulp  10:30 AM  Forest Products & Paper   Chris Black, SVP Forest Products & Paper  10:45 AM  Sustainability  Carla Yetter, VP Environmental & Regulatory Affairs  11:00 AM  Questions & Answer Session     BREAK      11:20 AM  Strategic Pillars  Frank Ruperto, CFO & SVP, Finance and Strategy  11:45 AM  Closing Comments  Paul Boynton, Chairman, President & CEO  12:00 PM  Questions & Answer Session    4 
 

 Investor Day – 2019     Paul Boynton Chairman, President & Chief Executive Officer 
 

 Values and visionYou know us better than you thinkOver 90 years of continuous improvement and innovationRYAM today…Strategy to drive growth and valueGo-to-Market strategyPillars of growthPortfolio evaluationDisciplined capital allocation  Rayonier Advanced MaterialsNYSE Investor Day  6 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits    Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value      7 
 

 Creating value by applying science to nature.   Our Values  Integrity  Accountability  Quality  People  Our Vision  z  z  z      8  From Renewable to RemarkableTM 
 

 9  You already know us…        Paint  High Tenacity Rayon Textile Cord for Tires  Highly Mercerized Fibers for Air and Oil Filters  9                           
 

   10  You already know us…    Protective Polarizing Film for LCD Screens  10 
 

 You already know us…    Time Release CoatingSpacing Agent in Pharmaceuticals  Thickening Agents  11 
 

 You already know us…  Food Safe Sausage Casing  Sponge Fibers  Dietary Foods  12 
 

     Over 90 Years of Creating Value  13 
 

 Rayonier Advanced MaterialsContinuous Improvement and Innovation  1926 – Rainier Pulp and Paper Company  14 
 

 Fernandina Beach plant opens  A Look Through Our History    1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  Rainier Pulp and Paper Company founded  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier    Jesup plant Started  First viscose grades at Tartas   Co-developed “fluff” pulpwith J&J   Acetate growth due to cigarette filters and photographic film    First high IV ethers grades in Temiscaming   Rayonier Advanced Materials becomes stand alone company   Novathin® cores developed for absorbent materials market   Rayonier Advanced Materials acquires Tembec  Acetate for LCD applications  15   
 

 A Look Through Our History  1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  First viscose grades at Tartas   Co-developed “fluff” pulpwith J&J   Acetate growth due to cigarette filters and photographic film    First high IV ethers grades in Temiscaming   Rayonier Advanced Materials becomes stand alone company   Novathin® cores developed for absorbent materials market   Rayonier Advanced Materials acquires Tembec  Acetate for LCD applications  Partnered with DuPont to produce purified cellulose from hemlock for rayon industry  16   
 

 Rainier Pulp and Paper Company founded    1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier   Improved Fluff with J&J   Rayonier Advanced Materials becomes stand alone company   Novathin® cores developed for absorbent materials market   Rayonier Advanced Materials acquires Tembec  Partnered with J&J to optimize an absorbent fiber in the first development of disposable baby diapers   17  A Look Through Our History 
 

 Rainier Pulp and Paper Company founded    Fernandina Beach plant opens  1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier  First viscose grades at Tartas   Acetate growth due to cigarette filters and photographic film     Rayonier Advanced Materials becomes stand alone company   Novathin® cores developed for absorbent materials market  Acetate for LCD applications  NovaThin® patented absorbent cores    18  A Look Through Our History 
 

 Fernandina Beach plant opens  Rainier Pulp and Paper Company founded  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier    Jesup plant Started  First viscose grades at Tartas  Co-developed “fluff” pulpwith J&J   Acetate growth due to cigarette filters and photographic film  Perfected ultra high purity acetate for LCD screens  19      1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  A Look Through Our History 
 

 Fernandina Beach plant opens  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier  Jesup plant Started  First viscose grades at Tartas   Co-developed “fluff” pulpwith J&J   Acetate growth due to cigarette filters and photographic film    First high IV ethers grades in Temiscaming   Novathin® cores developed for absorbent materials market   Rayonier Advanced Materials acquires Tembec  RYAM introduces XV20 - highest viscosity wood-based ethers pulp available  20  A Look Through Our History  1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  Rainier Pulp and Paper Company founded   
 

 Global Headquarters      Barnesville, GA  Eastman, GA  Quitman, GA  Quitman, GA  Collins, GA    Jacksonville, FL    Jesup, GA    Fernandina Beach, FL  Temiscaming, QC  Matane, QC  Kapuskasing, ON  Bearn, QC  Chapleau, ON      Cochrane, ON          Hearst, ON    Huntsville, ON          La Sarre, QC  Fiber Facility    Sales/Research & Development              Montreal, QC      Forest Products Facility  Pulp & Paper Products Facility  High Purity Cellulose Plant          Tartas, France        London, UK  Canadian Headquarters  Shanghai, China  Tokyo, Japan                    Global HQ Jacksonville, FLCanadian HQ Montreal, QC R&D Locations US and FranceManufacturing Facilities 17 in the US, Canada and FranceSales Offices US, Canada, London, Tokyo and ShanghaiEmployees4,200NYSE TickerRYAM  Who we are today…  At A Glance  21 
 

 RYAM by the Numbers  2018 Revenue by Geography  2018Adjusted EBITDA by Segment  2018Revenue by Product    High Purity Cellulose    Pulp    Forest Products    Paper  *Revenue by Segment excludes eliminations, Adjusted EBITDA by Segment excludes Corporate segment results  $2.1 billion  $364 million  22 
 

 Granite Considerations---Granite Overview  RYAM Diverse Business Segments    High Purity Cellulose  Forest Products  Paper  Pulp  Products  Dissolving Wood PulpAcetateEthersSpecialtiesViscoseFluff Pulp  Dimensional LumberFraming Materials Wood ChipsFuel (Chips, Sawdust, Shavings & Bark)   PackagingMultiply Coated BoardNewsprintBook Paper  Mechanical Hardwood Pulp (Maple & Aspen)  End Markets          23 
 

 Granite Considerations---Granite Overview  Acquisition of Tembec – November 2017    Complementary product offerings and technical capabilities across High Purity Cellulose gradesAdditional growth opportunities in packaging and forest productsProduct and geographic diversificationStronger, more balanced business with greater scale to drive growthShared vision on safety, operational excellence and environmental stewardship   Attractive purchase price leveraged down by synergies, investment opportunities and strong commodity marketsAnnual cost synergies of $75 million expected to be achieved over 3 years; 50% higher than at announcementIncremental EBITDA benefits of $25 million from strategic capital investmentStrong commodity segments produced $139 million of Adjusted EBITDA in 2018Tembec asset generated $244 million of EBITDA less CapEx* since announcement74% accretion to Adjusted EPS in 2018  Rationale  Results  24  * Operating segments before corporate expenses 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits    Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value      25 
 

     5 of 8 Major Cellulose Specialties Lines    RYAM to align assets to meet market needs and lower costs  26  Bracell  GP Cellulose  Borregaard  Others DomsjoNipponCosmo 
 

 Cellulose Specialties Pricing  27  Prices settle – potential inflection point  Price $/ADMT  Stabilization  Convergence  27   
 

 Granite Considerations---Granite Overview  Go-to-Market Strategy  Market conditions have changedCS prices have stabilizedAcetate prices at parity with other CS productsGrowth in Cellulose SpecialtiesImprove price and marginsDeliver long-term EBITDA growthReduce exposure to acetate and grow with the market in ethers and other CSExit lowest margin business  Five CS lines to optimize grades and geographies to better serve customers and reduce costsAlign assets toward most productive useConvert Temiscaming plant to commodity products only (except regulated MCC); no acetate or ethersKeep Jesup A focused on Other CS and Tartas on ethers and nitration; cease acetate production on both   Commercial Actions  Asset Realignment  28 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits    Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value      29 
 

   Granite Considerations---Granite Overview  Strategic Pillars of Growth  $61 million* generated in 2018;On track to deliver $155* million from 2018-2020  *Includes $25 million from Legacy Cost Transformation initiative  Cost Transformation  Reduced costs by $53 million$25 million from legacy plan$28 million from synergiesEstablished Global Improvement Team (GIT) to capture remaining $47 million of costs  New Products  2 commercialized products brought to marketOptisilk – lower cost viscoseXV20 – ultra-high viscose ethers$6 million of incremental EBITDA  Market Optimization  Integrated businesses to make right product in right locationEstablished centers of excellence for sales and manufacturing to drive future value  Investments  $37 million of strategic capital$45 million of debt reduction$72 million of capital returned$29 million of dividends$43 million from buybacks  30 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits    Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value      31 
 

 Portfolio Evaluation  Portfolio became more diverse with Tembec acquisitionSome assets are integrated with the core High Purity Cellulose businessFormal asset reviewEvaluating highest value owner for certain commodity assets (RYAM or Other)RYAM is prepared to operate and invest in all assets in its current portfolio  32  Evaluating strategic alternatives for certain commodity assets  32 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits    Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value      33 
 

 Disciplined Capital Allocation    Maintain Assets  $100-110 million of annual capex  Adjusted Free Cash Flow  Return of Capital to Shareholders  Stock buybacks and dividends to maximize long-term shareholder returns  External Strategic Investments  Acquisitions and other investments to complement core business  Investment in the Company  High-return projects designed to enhance competitive position and drive EBITDA growth     Reduce Leverage  Target 2.5x Net Leverage  Value Driven Approach Focused on Risk Adjusted Returns on Invested Capital  Cash Flow From Operations  34 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Launch new “Go-to-Market” strategy designed to:Improved Cellulose Specialties price and marginRealign assets to market needs and sales mixDrive long-term High Purity EBITDA growth  Improve the competitive positioning through the Four Strategic Pillars- Cost transformation - Market optimization- New products - Prudent investments  To include:Formal asset reviewDetermine market value of business segmentsCapture highest value for shareholders  Employ a disciplined and balanced capital allocation strategy focused on:Debt paydownRe-investment Return of capital to shareholders  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits  Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value  35 
 

 High Purity Cellulose Commercial  Erin ByersSVP, High Purity Cellulose 
 

 90 Years Advancing Cellulose Chemistry      Cellulose Polymer Chain    RepeatingUnits  37 
 

           Market Pulp Industry Value Chain*  Dissolving Pulp: Commodity Viscose  6 MMT  58 MMT  7 MMT      Market Pulp Industry: 73 MMT     IncreasingSpecialization& Sales Prices  Source: Hawkins Wright and company estimates* Based on 2017 estimates** Includes Cotton Linter Pulp  RYAM is a market leader in high purity cellulose specialties  CommodityMarket Pulp  Fluff  Dissolving Pulp: Cellulose Specialties  1.6 MMT  38 
 

 *illustrative customers  Global Customer Base        39  Based on sales volumes 
 

 A Renewable Building Block In Everyday Products        40 
 

 Exceeding Customer Needs  PerformanceBroadest range of high performance productsProprietary high purity technologyExacting specificationsOnsight customer technical supportJoint product development teams with customers  41  Customer relationships spanning 9 months to 90 years  ReliabilityReliable supply from multiple plants and multiple linesCustomer service and supply chain expertiseMulti-year sales agreements 
 

 Cellulose Specialties Product Overview  Products  End Markets  Primary Competitors*  Demand Outlook  Size (000s tons)  Acetate Pulp      ~(1)%  660  Ethers Pulp      3-4%  440  Other CS      2-3%  450  Total Cellulose Specialties        1,550  Cotton Linter Pulp  42  *Other competitors include Domsjo, Nippon, Cosmo  Source: Hawkins Wright and company estimates Based on 2017 estimates Includes Cotton Linter Pulp 
 

 Cellulose Specialties Pricing  43  Convergence of Acetate and Ethers Sales Price  Price $/ADMT  Significant EBITDA impact from price erosion  * Excludes benefits of cost transformation initiatives  43    Stabilization  Convergence 
 

 Committed to all Cellulose Specialties products Reduce exposure to declining acetate marketGrow with ethers and other CS markets Displace cotton linter pulp to expand ethers volumesImprove price and margins Exit underperforming businessAlign assets to new Go-to-Market Strategy  Cellulose Specialties Go-to-Market Strategy  44  Drive long-term EBITDA growth 
 

   Commodity Product Overview and Strategy  45  Optimal mix of fluff and viscose based on market conditions and highest margins over timeMaximize commodities at Temiscaming and Jesup C linePositive fixed cost contribution  45  Products  End Markets  Primary Competitors*  Demand Outlook  Size (000s tons)  Viscose    Various  6-7%  6,700  Absorbent Materials      3-4%  5,700  Total Commodities        12,400 
 

 Fernandina Beach plant opens  Rayonier Advanced Materials History    1926  1931  1939  1954  1950s  1960s  1970s  1980s  1990s   2000s  2014  2017  Rainier Pulp and Paper Company founded  Partnered with DuPont to produce cellulose for rayon fibers renamed Rayonier    Jesup plant Started  First viscose grades at Tartas   Co-developed “fluff” pulpwith J&J   Acetate growth due to cigarette filters and photographic film    First high IV ethers grades in Temiscaming   Rayonier Advanced Materials becomes stand alone company   Novathin® cores developed for absorbent materials market   Rayonier Advanced Materials acquires Tembec  Acetate for LCD applications  46   
 

   History of Innovation  47  47 
 

 New Product Portfolio   48  20% of revenue derived from new products produced in past 5 years$15 million of EBITDA improvement from 2018-2020$6 million achieved in 2018   GOALS:  48 
 

 Two recent new product launches  49  Optisilk: Novel cost effective technology for viscose pulp productionSouthern pine fiberIncreased through put at viscose plants when blended with normal hardwood viscose pulpJesup Plant  OptiSilk  Biofloc XV 20  Novel cost effective technology for viscose pulp production  The highest viscosity wood based cellulose on the market  Southern pine fiber  Viscosity = 1,800 ml/g+  Increased throughput at viscose plants when blended with normal hardwood viscose pulp  Expands the market for RYAM ethers grades  2018 revenue = $76 million  Competes with cotton linter pulp in demanding construction applications  Jesup Plant  Tartas Plant  49 
 

 High Purity Cellulose Growth Drivers  50  Industry leading product portfolioLong-term customer partnershipsNew product pipelineCellulose Specialties Price stabilization in 2019Go-to-Market strategy matches assets to markets and drives price and margin improvementPositioned to grow long-term EBITDA mid-to-high single digits  50 
 

 High Purity Cellulose Manufacturing  Bill ManzerSVP, Manufacturing Operations 
 

 Fernandina , Florida 1939Jesup , Georgia 1954Temiscaming, Quebec 1973 (Tembec start)Tartas ,France 1996 (conversion to CS)  Decades of Learning and Developing  52  4 Sites, 6 HPC lines, 5 CS capable  52 
 

 Multiple Production Lines and Products  Customized for each Customer application      Filter  Plastic  LCD/Film  Tire Cord  Casings  Acetate  Ethers/MCC  SpecialtyHigh Value  High Strength Viscose  Customer End Uses  Finishing  Pulping  Hardwood  Softwood  Kraft  Sulfite                                                  Bleaching  Food  Pharmaceuticals    The “Rayonier Advanced Material Recipe”    53 
 

   Global HPC Manufacturing Presence  Jesup, GA  Fernandina, FL      Temiscaming, QC  Tartas, France      Facilities  Capacity  Jesup, GA  575,000 MT  Fernandina Beach, FL  155,000 MT  Tartas, France  140,000 MT  Temiscaming, QC  150,000 MT  54 
 

 RYAM Line  Wood  Tech  Capacity  Fernandina  Softwood  Sulfite  155,000   Jesup A  Hardwood/ Softwood  Kraft  330,000  Jesup B  Hardwood  Kraft    Jesup C*  Softwood  Kraft  245,000  Tartas  Softwood  Sulfite  140,000  Temiscaming  Softwood  Sulfite  150,000  A Global Leader in High Purity Cellulose    * Commodity Only  55   775,000 MT Cellulose Specialties Capacity + 245,000 MT Commodity Capacity= > 1,000,000 MT Total Capacity 
 

 Cost to Produce  Wood FiberU.S. Southern PineU.S. Southern HardwoodFrance Maritime PineCanada Spruce, Pine and Fir from lumber chipsChemicalsCausticSulfurEnergyBiofuelNatural Gas  Average Cost* across High Purity Cellulose Segment  * Varies by location  56 
 

 Cellulose Specialties Asset Alignment    Acetate  Ethers  MCC  Nitration  Other CS  Commodity  Temiscaming              Tartas              Jesup A              Jesup B              Jesup C              Fernandina              57  57  Other CS includes filtration, casings and tire cord products  Today     MCC Regulated in Temiscaming 
 

 Cellulose Specialties Asset Alignment    Acetate  Ethers  MCC  Nitration  Other CS  Commodity  Temiscaming              Tartas              Jesup A              Jesup B              Jesup C              Fernandina              58  58  Other CS includes filtration, casings and tire cord products  Today     MCC Regulated in Temiscaming 
 

 Cellulose Specialties Asset Alignment    Acetate  Ethers  MCC  Nitration  Other CS  Commodity  Temiscaming              Tartas              Jesup A              Jesup B              Jesup C              Fernandina              59  59  Other CS includes filtration, casings and tire cord products  Today     MCC Regulated in Temiscaming 
 

 Cellulose Specialties Asset Alignment    Acetate  Ethers  MCC  Nitration  Other CS  Commodity  Temiscaming              Tartas              Jesup A              Jesup B              Jesup C              Fernandina              60  60  Other CS includes filtration, casings and tire cord products  Today     MCC Regulated in Temiscaming 
 

 Cellulose Specialties Asset Alignment    Acetate  Ethers  MCC  Nitration  Other CS  Commodity  Temiscaming              Tartas              Jesup A              Jesup B              Jesup C              Fernandina              61  61  Other CS includes filtration, casings and tire cord products  Today     MCC Regulated in Temiscaming 
 

 Continuous Improvement  Cost Savings by Area  $140 million  58% of $140 million cost transformation savings from manufacturing  Key Areas of Manufacturing FocusChemical ReductionsEnergy EfficiencyMaintenanceWood Procurement  62 
 

 Fundamentals of Continuous Improvement   Everything we do is a processContinuous Improvement is a part of everything we do; it is not a separate activityIt is all about Teams, at all levelsStandard work is critical to building and sustaining Continuous ImprovementVisual Management is key to highlighting actuals to standards and expectationsGo see where the work is done  63  Every person, every day, driving continuous improvement 
 

  Maintenance Capital Process A Rigorous and disciplined system  Maintenance Capital ProcessCompliance requirementsMaintain operations5 Year PlanPrioritized risk rankingExecutive review  64  $80 Million annual High Purity Cellulose budget$100 Million RYAM total budget 
 

   Strategic Capital Process  Strategic projectsHigh-return projects2018-2020 capital plans*$30 million of capital, net$15 million annual EBITDA improvement**  * High Purity Cellulose Strategic Capital benefits both Investment Pillar and Cost Transformation Pillar, depending on size and scope** Additional EBITDA benefits extend beyond 2020  65 
 

 High Purity Cellulose – Key Highlights  Core-business contributes greater than 50% of Company EBITDALong successful history in this market with global customer relationships dating back over 90 yearsMost capable assets base in the industryEfficient operations built on continuous improvement processes successfully reduced significant cost with additional opportunities aheadIdentified opportunities for high-return capital investments over the next several yearsHistory of innovation with New Products expected to generate over 20% of revenues in next 5 yearsOur Go-to-Market strategy will increase profit margins  66 
 

 QUESTIONS?  67 
 

 High Yield Pulp  Ken DuffyVP, Sales & Marketing, High Yield Pulp 
 

 Global Market - Paper Pulp  69  High Yield Pulp4.5 million MT (7%)  Total Demand 65 million MT   1) Excludes 60 MT of internal sales.  Source: Brian McClay  69 
 

 High Yield Pulp Overview  Two High Yield Pulp mills~60,000 MT sold internally to Temiscaming’s Paperboard facility100% hardwood grades Maple & aspenTwo main marketsPrinting & Writing PaperPaperboard Leader in FSC* certified pulp  70  Facility Details       High-Yield Pulp  tonnes  Hardwood high-yield - Temiscaming, QC  300,000  Hardwood high-yield - Matane, QC  270,000  Total  570,000      70  * Forest Stewardship Council  Temiscaming, QC    Matane, QC   
 

 Pulp Sales Mix  71            Diversified customer baseNorth America customer mix growingChinese market share has decreased to 38% from 50% over the last few years  2018 Sales by Region  2018 Sales by End Use  71  Top 10 Customers = 70% of salesLargest Customer = 10% of sales 
 

 Major Paper-Grade Market Pulp Capacity Changes  72  Source: Hawkins Wright. Announced capacity changes only, not committed.  65 MT Global Market Pulp  No significant announced capacity expansions expected until 2021  (000) MT’s  72  2% Demand Growth = 1.3 Million MT per year 
 

   73   Source: Brian McClay & Associates Inc. - February 15, 2019  Favorable Market Conditions  73  Quarterly NBSK/BEK US$ List Prices in ChinaCIF Chinese Port, Actual Prices Through Q3 2018  Positive supply-demand outlook No new major capacity additions expected until 2021Pulp demand forecasted to grow 2% per yearDemand growth concentrated in Asia, mainly in tissue and packaging sectorsOver 94% Shipment to capacity utilization   Source: PPPC 
 

 Attractive Mill Profiles  Low cost millsBoth mills in second quartileDelivered Costs < $475/tonne (CIF China) Geographically located to deliver to key marketLow capital requirementsTotal CapEx of $3.5 million average per yearHigh cash flow conversion  74            74 
 

   Pulp Segment EBITDA  75  Note: 2014-2017 calendar year results based on Tembec published historical reported segments, converted to US Dollars 
 

 Versatile high yield pulp millsHigh-bulk maple and aspen desired fiber for paperboard and printing and writing marketsLeading producer of FSC Certified High Yield PulpLow cost producer2nd Quartile on the cost curveFavorable transportation optionsPricing strength forecasted for several yearsPositive supply-demand dynamics with minimal new announced capacity until at least 2021  Pulp – Key Highlights  76 
 

 Forest Products  Chris BlackSVP, Forest Products & Paper 
 

 Kapuskasing, ON  Bearn, QC  Chapleau, ON      Cochrane, ON      Huntsville, ON        La Sarre, QC  Hearst, ON        Forest Products Overview  Produce a wide range of commodity forest products used primarily for residential and commercial construction Top 10 producer of lumber in US & CanadaManufactured products include SPF lumber, hardwood lumber, wood chips, and by-productsHighly diversified customer baseLeader in FSC-certified wood productsSubject to final duties of 20.2%  Facility Details        SPF Lumber  (mbf)  Stud lumber - La Sarre, QC   135,000  Stud lumber - Cochrane, ON  125,000  Stud lumber - Kapuskasing, ON  105,000  Random lumber - Bearn, QC  110,000  Random lumber - Chapleau, ON  135,000  Random lumber - Hearst, ON  110,000  Total Spruce, Pine, Fir (SPF)  720,000  Specialty Wood  Hardwood lumber - Huntsville, ON  15,000      mbf  2018 Lumber Sales by Geography  Capacity  78 
 

 M.S.R., #2 & Better  Stud Grade  No. 3, Economy  Premium Grades    Wood Usage by Different Grades   Random Length Mills  Stud Mills  79 
 

   Internal Supply & Demand – Chips  Sawmill Chip Production   Chip Consumption   RYAM currently uniquely balanced   36%  bdmt = bone dried metric ton  80   
 

   Lumber Market Outlook  Lumber consumption expected to grow slowly but steadily over the next several yearsSupply side constraints will hamper the North American industry’s ability to keep pace with growing consumptionTightening demand supply conditions along with increased higher cost imports should improve prices from lows we are currently experiencingUS housing starts key indicator  Source: RISI  81 
 

 U.S./Canada Softwood Lumber Dispute  2018 Canadian exports to the U.S. fell 1,800 BBF to 13,500 BBFRepresents 28% U.S. market share (down from 30% in 2017)AD & CVD rates at 20.2%RYAM current deposits to December 31st total US$37 million.No ongoing negotiations and no agreement anticipated over the next 12 months. In the meantime, Canadian government continues to work on litigation through both USMCA and WTO.  82 
 

 Cost Position & Breakeven  2018-2020 Strategic Capital $30 million of investment with $15 million in returns$8 million from cost reductions$7 million from margin improvementReliability Increased reliability improves costs by $5 million604 MBF production in 2018 680 MBF production forecast for 2020Great Lakes historical average premium of $85-90/mmbf above the Western Index  Total Cash Cost $USD/mmbf    $420  Improving our competitive position over next two years  Q4 2018 Break Even*  *Break evens include $43/mmbf of duties based on constant current mix and geographical sales  $43  $377  $390  $347  2020 Projected Break Even*  Without duties  With duties  83 
 

 Sawline Modernization  $10M InvestmentCost Improvement – Better log recovery through curve sawingCost Reduction $4MMargin Enhancement – Better quality products/more gradesPrice improvement $1M    84    $10 million Investment 
 

   Forest Products Segment EBITDA  85  Note: 2014-2017 calendar year results based on Tembec published historical reported segments, converted to US Dollars 
 

 Forest Products – Key Highlights   Well-managed and maintained FSC Certified wood basketOpportunity to lower our costs through investments and synergies at all sawmillsDemand/Capacity ratio of over 90% forecasts favorable conditions for sawmills  86 
 

 Paper  Chris BlackSVP, Forest Products & Paper 
 

 88  Video 
 

 Facilities  Capacity  Paperboard (Temiscaming)  180,000 MT  Paperboard Overview  Printing MarketMarket optimization focused on improving board overall quality and cost structure and capitalizing on unique Folding Box Board (FBB) lightweight advantagePackaging MarketEnter market by developing higher caliper grades suited to the packaging folding boxboard segment with existing machine capabilities.  Facility Details  Sales By Geography  89  Temiscaming, QC   
 

 Paperboard – RYAM Key End Markets  Packaging  Commercial Printing  Sheeters/resellers  Merchant  Printer        Publishing  BUSINESS SEGMENTS  MARKET SEGMENTS  Packaging  Tobacco/Gum  Lottery  Commercial Material  47%  42%  11%  Agendas BookDirectory Phone Book Soft Cover BooksManuals CD/DVD Covers  Folding Carton PharmaBeverages Boxes Food PackagingCosmetics  Cigarette packsGum wrappers  Scratch ticketsPull-tab tickets  MenusCalendarsWriting pad coversInsertsReply cardsFlyersGreeting CardsDoor HangerGame CardsSports / Event TicketsPlaying Cards Tags Bottle Neck Hand TagsClothing Tags  Direct MailBannersPresentation FolderPostersPOPDisplay Boxes / TraysCouponsSignageEnd Cap DisplayBusiness CardsEnvelopesMarketing CollateralBrochurePaint chips  END PRODUCTS  90 
 

 Paperboard - Market Drivers  RISI North American Graphic Paper Forecast – 5 year, August 2018RYAM Customer infoRISI North American Graphic Paper Forecast – 5 year and PPPC Data Analytics StudyRISI North American Paper Packaging Forecast – 5 year, September 2018  Segments traditionally served by RYAM in decline; higher caliber segments growing  Commercial print Instant lotteryGang run printing  Declining ~1%/yr1Stable in 20192  Book publishingeBooks and digital platforms  Declining 3-10%/yr3  Packaging (bleached cartonboard)E-commerce (Amazon effect)Transition from plastic to paper-based packagingGeneral state of the economy (durable and non-durable goods consumption and food service)  Growing ~5%/yr4  91 
 

 Paperboard Pricing History and Forecast  92  RISI online, February 2019  92  Market IndicatorsPrice Index, SBS coated 1 side, 16 pt, USD/MT 
 

 Newsprint Overview  Newsprint has one facility located in Kapuskasing, ON Key markets include daily newspapers and commercial publications, as well as controlled bulk paper for mass-market paperback booksNewsprint markets are in decline due to global trends towards digital mediaThe Kapuskasing facility is well placed on the cost curve (first quartile)  Facility Details  Sales By Geography  Facilities  Capacity  Kapuskasing    Newsprint  205,000 MT  Key North American Producers  93 
 

 Newsprint Market Commentary  Newsprint demand declining 10% year over yearSimilar trend in Bulky Book grades in book publishing marketseBooksDigital publishingCommercial print continues to declineAdvertising spend shifting to digital platformsReduction in supply from high-cost producers exiting the market is tied to market pricesOne mill closure every 12-18 months needed to maintain supply/demand equilibrium  94 
 

   Newsprint Pricing History and Forecast  Source: RISI online February 2019 and Company  Newsprint 48.8 gram, US East   95 
 

 North American Newsprint Mill Cash Cost Curve    Canadian assets   U.S. assets  RED  BLUE   RYAM  GOLD  *source: PPPC and Company Data  1) Excludes the impact of lumber duties.  96  RYAM  Mill Cash Cost Curve 
 

   Paper Segment EBITDA  97  Note: 2014-2017 calendar year results based on Tembec published historical reported segments, converted to US Dollars 
 

 Paper – Key Highlights  PaperboardWell-established and highly-regarded Kallima brandStrong share in the large lottery ticket marketOpportunity to produce more products for the high growth packaging sectorNewsprintLow cost producer Diversifying into more stable commercial print and book markets Exploring low cost opportunities to produce other grades including packaging products In Newsprint, evaluating higher value products with no low or little capital investmentTotal Paper Segment, reduce costs from Cost Transformation/Synergies and strategic Investments  98 
 

 Sustainability  Carla YetterVP, Environmental & Regulatory Affairs  
 

 Renewable Business Cycle  100   
 

   Forestry Stewardship  Knowledge and experienceResearch Community engagementConservationCertification  101 
 

   Responsible Operations  Culture of Continuous ImprovementConserve resourcesReduce impactsEnergy focus  102 
 

 People   The Foundation of SuccessCommitment to Safety Everyone injury-free everydayGrowing talent  103  103 
 

 Communities  RYAM FoundationsEmployee involvementPartnerships with schoolsCommunity Advisory Councils  104 
 

 Governance  Core ValuesCode of ConductBoard of Directors  105  105 
 

 Turning the Renewable into the RemarkableTM  106  106 
 

 Looking Forward  107   
 

 www.rayonieram.com  108  108 
 

 QUESTIONS?  109 
 

 Strategic Pillars of Growth    Frank RupertoChief Financial Officer and SVP, Finance & Strategy 
 

   Rapidly reshape the company’s cost position  Maximize earnings by optimizing product and market mix  Develop a pipeline of customer-valued new product and service offerings  Create a faster growing business with disciplined and balanced capital allocation  Investments /   RYAM Strategic Pillars  Investments  CostTransformation  MarketOptimization  NewProducts  111 
 

 Cost Transformation  Rapidly reshape the company  Achieve a sustainable globally competitive cost position in any market environment through continuous improvement and creativity that enables our customers, company and employees to pursue growth opportunities  VISION  MISSION  112  CostTransformation 
 

 Legacy Cost Transformation Complete  *Cost Transformation improvements before inflation and changes in commodity prices  $140 million of Cost Transformation achieved from 2015-2018  113 
 

   Cost Transformation Management Structure  Cross-functional leadership team with the common objective to drive performance  Manage portfolio of actions – address risks & clear hurdles – Continuous Improvement  1) Team aligned on common performance incentives.  114 
 

   ($ million)  Cost Transformation Improvements  Significant Cost Transformation EBITDA improvement since 2015      $90 Cost Transformation  $75 Cost Transformation“Synergy”  115 
 

 Granite Considerations---Granite Overview  By Functional Area  *Synergies expected to be realized over a 3 year period  $75 million*   By Operating Segment  Cost Transformation Synergies  Significant Synergies across business with less than 1x cash costs to achieve  116 
 

 Integration Progress for Tembec  Day 1 of Acquisition:New management team and organizational structures in placeFew integrated business processesDisparate technology systemsStarted to push towards One Company, One Team cultureBackoffice inefficienciesKicked off global improvement team “Synergy Focus”Focus on business continuity  Day 365+ of AcquisitionMajor progress in key business processes standardizedImplementing Global ERP technology with priority in HPCActively managing 300+ cost transformation ideas and actions globally $28 million in Cost Transformation synergy realized in 2018Improving Backoffice cost effectiveness   117 
 

 Strategic Sourcing  Strategic Sourcing changes have led to significant savings opportunities  2016 - Move to Strategic Sourcing model (11 Step Process)2017 – Focus on improving sourcing opportunitiesExpanded our Sourcing organizationDeveloped, trained and implemented a Strategic Souring process across the legacy RYAM companyLegacy project has generated $16 million in savings to-date2018 - Begin integrating Tembec into Strategic Sourcing process. Expected to generate 35% of synergies, including supply chainOffset rising costs high inflation periods and deliver growth in low inflation periods.  Category  Comments  Directs (Chemicals)  Projects built around new scale and market expertise  MFG (Eqpt & Service)  Longer lead times with complex implementations  Indirects (Support Service)  Quick wins that require significant change management  Logistics  Continuous optimization and sourcing strategy  Energy  Regulated industry and specialty knowledge  Approximate Spend by Category  118 
 

 Cost Transformation – Examples  Corporate and Backoffice synergies Eliminate redundancy in management teamsImplement technology to automate transactional business processesOutsource certain transactional or support function to be more cost effective and efficient Drive functional back office costs to industry bench marksExpected to generate approximately 15% of targeted synergies  Distribution of Synergy by Area  119 
 

 Market Optimization  Maximize earnings by optimizing product and market mix  Identify and achieve optimum sustainable sales mix based on RYAM production capabilities, end markets and customer attractiveness  VISION  MISSION  120  MarketOptimization 
 

 Go-to-Market Strategy  Review Cellulose Specialties volumes to improve marginsReduce exposure to acetate and grow with the market in ethers and other CSExit lowest margin businessRealign production assetsGoal to reverse price declines from previous 5 yearsStabilize HPC segment and improve price, margins and EBITDAGo-to-Market Strategy aligned with and supports Market Optimization goal of generating $15 million in EBITDA by 2020  Commercial Actions and Realignment of Assets Drive Long-Term EBITDA Growth  121 
 

 New Products  Develop a pipeline of customer-valued new product and service offerings  Improve profitability by generating 20% of sales from new products developed in the prior five years  VISION  MISSION  122  NewProducts 
 

 New Products Goals  Focus on developing high value, cellulosic productsLeverage specific cellulose knowledge and production capabilities to identify new opportunitiesDerive 20% of revenues from new products within 5 yearsDeliver $15 million in EBITDA by 2020; $6 million realized in 2018Continue to develop a pipeline of products  RYAM’s New Products Pillar is anticipated to generate approximately $15 million in opportunities across the portfolio through 2020  123 
 

 Investments  Create a faster growing business with disciplined and balanced capital allocation  Allocate capital in a disciplined and balanced method focused on manufacturing assets, managing debt levels and investing for risk adjusted returns to drive shareholder value  VISION  MISSION  Investments  124  Investments 
 

 Investments Goals  Benefit from Quebec Tariff L program to return 40% of capital spent on qualified provincial investments  RYAM has significant opportunities to invest capital in its existing business and generate high returns  125  $45million      Forest Products  High Purity Cellulose   $25million 
 

 Portfolio Evaluation  Portfolio became more diverse with Tembec acquisitionSome assets are integrated with the core High Purity Cellulose businessFormal asset reviewEvaluating highest value owner for certain commodity assets (RYAM or Other)RYAM is prepared to operate and invest in all assets in its current portfolio  126  Evaluating strategic alternatives for certain commodity assets  126 
 

 Disciplined Capital Allocation    Maintain Assets  $100-110 million of annual capex  Adjusted Free Cash Flow  Return of Capital to Shareholders  Stock buybacks and dividends to maximize long-term shareholder returns  External Strategic Investments  Acquisitions and other investments to complement core business  Investment in the Company  High-return projects designed to enhance competitive position and drive EBITDA growth     Reduce Leverage  Target 2.5x Net Leverage  Value Driven Approach focused on Risk Adjusted Returns on Invested Capital  Cash Flow From Operations  127 
 

 2018 Capital Resources & Allocation  Disciplined Allocation of Adjusted Free Cash Flow    Excludes proceeds from Resins business  Debt Repayments of $46 millionStrategic Capital of $37 million$9 million for LignoTech Florida$17 million toward Investment pillar$11 million toward Cost Transformation pillarDividends of $29 million7₵ per quarter on common shares$2.00 per quarter on preferred shares* * Preferred shared convert to common in August 2019Equity Repurchases of $43 millionUtilized $40 million of $100 million share buyback authorization  128 
 

 Stable and Balanced Capital StructureAs of December 31, 2018    Outstanding  Leverage  Interest Rate  Maturity  Cash  $109           Term Loan A-1  $160    LIBOR +2.00%  November 2022     Term Loan A-2  $439    LIBOR +1.75%*  November 2024     Other Secured Debt  $98     Average ~6%  2019-2028  Total Secured Debt  $697  1.9x         Senior Notes  $496    5.50%  June 2024  Total Debt  $1,193  3.3x      Net Debt  $1,084  3.0x      Adjusted EBITDA  $364        % of Fixed Net Debt**  73%        Includes 0.6% benefit from cash patronage** Fixed Net Debt includes $200 million of floating to fixed rate hedges that expire in November 2020  129 
 

   Granite Considerations---Granite Overview  Strategic Pillars of Growth  $61 million* generated in 2018;On track to deliver $155* million from 2018-2020  *Includes $25 million from Legacy Cost Transformation initiative  Cost Transformation  Reduced costs by $53 million$25 million from legacy plan$28 million from synergiesEstablished Global Improvement Team (GIT) to capture remaining $47 million of costs  New Products  2 commercialized products brought to marketOptisilk – lower cost viscoseXV20 – ultra-high viscose ethers$6 million of incremental EBITDA  Market Optimization  Integrated businesses to make right product in right locationEstablished centers of excellence for sales and manufacturing to drive future value  Investments  $37 million of strategic capital$45 million of debt reduction$72 million of capital returned$29 million of dividends$43 million from buybacks  130 
 

 Strategic Pillars Tracking  *Cost improvements before inflation and changes in commodity prices  $155 million EBITDA* opportunity by end of 2020$61 million captured in year 1 of 3 year plan$45 million targeted in 2019  $100million  $15 million    $53 millionCaptured  $1 million Captured  $6 millionCaptured  $1 millionCaptured----$10 millionRun Rate  GOAL  $15 million  $25 million    2018  2019  2020      *Includes $25 million from Legacy Cost Transformation initiative as described in slide 12  131 
 

 Closing Comments    Paul Boynton Chairman, President & Chief Executive Officer 
 

 Granite Considerations---Granite Overview  Strategy to Drive Growth & Shareholder Value  Go-to-Market Strategy  Strategic Pillars  Capital Allocation  Portfolio Evaluation  Launch new “Go-to-Market” strategy designed to:Improved Cellulose Specialties price and marginRealign assets to market needs and sales mixDrive long-term High Purity EBITDA growth  Improve the competitive positioning through the Four Strategic Pillars- Cost transformation - Market optimization- New products - Prudent investments  To include:Formal asset reviewDetermine market value of business segmentsCapture highest value for shareholders  Employ a disciplined and balanced capital allocation strategy focused on:Debt paydownRe-investment Return of capital to shareholders  Achieve long-term EBITDA growth in High Purity Cellulose of mid to high single digits  Evaluate strategic alternatives for certain commodity assets  Disciplined allocation supports shareholder value  133 
 

 QUESTIONS?  134 
 

 Appendix   
 

   Granite Considerations---Granite Overview  Presenters  Paul BoyntonChairman, President & CEO  136  Mr. Boynton is Chairman, President and CEO of the Company, a position he has held since June 2014. Previously he held a number of positions of increasing responsibility with Rayonier Inc., including Senior Vice President, Performance Fibers from 2002 to 2008, Senior Vice President, Performance Fibers and Wood Products from 2008 to 2009, Executive Vice President, Forest Resources and Real Estate from 2009 to 2010, President and Chief Operating Officer from 2010 to 2011, President and CEO from January 2012 to May 2012 and Chairman, President and CEO from May 2012 to June 2014. Mr. Boynton joined Rayonier Inc. as Director, Specialty Pulp Marketing and Sales in 1999. Prior to joining Rayonier Inc., he held positions with 3M Corporation from 1990 to 1999, including as Global Brand Manager, 3M Home Care Division. Mr. Boynton serves on the Board of Directors of The Brink’s Company, is also a member of the Board of Governors and its Executive Committee of the National Council for Air and Stream Improvement, a member of the Board of Directors of the National Association of Manufacturers and a member of the Board of Directors of the Federal Reserve Bank of Atlanta’s Jacksonville Branch. From 2012 until 2014 Mr. Boynton also served as a director of Rayonier Inc. He holds a bachelor’s degree in Mechanical Engineering from Iowa State University, an MBA from the University of Iowa and graduated from the Harvard University Graduate School of Business Advanced Management Program.  Erin M. ByersSVP, High Purity and High Yield Cellulose Business  Dr. Byers joined Rayonier Inc. in September 1988 as Senior Research Specialist for R&D. In May 1993, he transferred to the Sales and Marketing group as a Technical Marketing Representative and in May 2007, he was promoted to Director, Cellulose Specialties. In November 2009, he was promoted to Vice President, Sales, Marketing and Research, a position he held until June 2014. Following our 2014 spinoff, Dr. Byers was appointed Vice President, Sales, Marketing and Research of the Company and was elected to his current position effective December 1, 2017. Dr. Byers holds a bachelor’s degree in Paper Science from the State University of New York and a master’s and PhD from the Institute of Paper Chemistry. 
 

   Granite Considerations---Granite Overview  Presenters  Bill ManzerSVP, High Purity Cellulose  137  Ken DuffyVP, Sales & Marketing High Yield Pulp   Mr. Manzer joined Rayonier Inc. as Vice President, Manufacturing Operations in January 2011, a position he held until June 2014.  Following our 2014 spinoff, Mr. Manzer was appointed to his current position for the Company.  Prior to joining Rayonier Inc., from September 2001 to December 2010, he was employed in various senior manufacturing roles for Fraser Papers (a manufacturer of specialized printing, publishing and converting papers) and most recently was Senior Vice President, Business Strategy and Projects. Previously, Mr. Manzer worked from January 1991 to August 2001 for Champion International and from June 1980 until December 1991 for Fraser Papers in various pulp and paper manufacturing roles. His responsibilities have included pulp and paper mills in the US and Canada.  Mr. Manzer holds a bachelor’s degree in chemical engineering from the University of Maine, Orono.  Ken joined Rayonier Advanced Materials in November 2017 with the acquisition of Tembec. During the last 30 years, he has been involved in sales and marketing in different aspects of the pulp and paper industry. Together with the sales, marketing and technical service group, he is responsible for the global sales strategy for Rayonier Advanced Materials’ High-Yield pulp business. Joining Tembec in 2011 as Vice President, Sales (High Yield Pulp), Ken and the team worked hard to expand the High-Yield Pulp customer base. In 2013, Ken took on additional responsibilities when the softwood kraft sales group was combined with high-yield pulp to create the paper pulp sales group. In 2016, the Newsprint Sales group was also added to his area of responsibility. Prior to joining Tembec, Ken held various sales and technical service positions of increasing responsibility in the specialty chemicals sector, almost exclusively dedicated to the pulp and paper industry. Mr. Duffy earned a Bachelor’s Degree in Applied Science (Chemical Engineering) from the University of Toronto in 1987. 
 

   Granite Considerations---Granite Overview  Presenters  Chris BlackSVP, Forest Production & Paper   138  Carla YetterVP, Environmental & Regulatory Affairs   Mr. Black joined Rayonier Advanced Materials in 2017 as Senior Vice President, Forest Products, Paper and Board Business, following the acquisition of Tembec. Prior to the acquisition, Mr. Black was Executive Vice President, Forest Products, Pulp and Paper at Tembec. Mr. Black began his career in 1983 with Kimberly-Clark Corporation where, over a ten-year period, he held increasingly senior positions in finance and marketing. In 1992, he joined Navistar as Director of Marketing and continued in the heavy truck industry in several sales and general management roles until joining Tembec in 2000. Mr. Black joined Tembec as Vice President, Sales and Marketing, Newsprint Division and was appointed Executive Vice President, Forest Products, Pulp and Paper in 2013. He holds a B.A. in Economics and a M.B.A. (Finance) from York University in Toronto.  Ms. Yetter serves as Rayonier Advanced Materials' Vice President of Environmental Affairs overseeing all environmental matters for the company. With more than 25 years of environmental engineering, law and government relations experience, Yetter leads a team of 7 professionals providing counsel to company leaders and addressing issues related to air, water, waste, remediation and environmental policy. Yetter chairs the company's Sustainability Council and has served on the Talent Management Council. 
 

   Granite Considerations---Granite Overview  Presenters  139  Frank RupertoCFO & SVP of Finance and Strategy   Mr. Ruperto joined Rayonier Inc. in March 2014 as Senior Vice President, Corporate Development and Strategic Planning, a position he held until June 2014. Following our 2014 spinoff, he was appointed to the same position at the Company and was appointed to his current position in November 2014. Prior to joining Rayonier Inc., from 2003 to 2012, he served as Managing Director, Mergers and Acquisitions for Banc of America Securities and, subsequent to their merger, Bank of America Merrill Lynch (each a consumer banking and financial services provider).  From 1996 to 2003, Mr. Ruperto held various positions at Merrill Lynch & Co. including Managing Director, Mergers & Acquisitions.  Prior to that, Mr. Ruperto was an Associate with Kidder Peabody & Co./PaineWebber Inc. from 1993 to 1995 and with Smith Barney Inc. from 1995 to 1996.  From 1988 to 1991, he was a Corporate Finance Analyst with Alex. Brown & Sons Inc.  Mr. Ruperto received a Bachelor of Arts with a concentration in economics from Harvard College and holds an MBA, with a major in finance, from The Wharton School of Business at The University of Pennsylvania.  Mickey WalshTreasurer & VP of Investor Relations   Mr. Walsh joined Rayonier Advanced Materials in 2013 as Treasurer and added the role of Vice President, Investor relations to his responsibilities in 2015. He currently sits on the board for LignoTech Florida, and has done so since 2015. Prior to joining Rayonier, Mickey was Vice President of Cenveo, Inc. From 2007 to 2010 he was Assistant Treasurer and, from 2005 to 2007 he served as Treasury Director. Prior to his tenure at Cenveo he served held roles at International Paper Company as Senior Analyst, Global Market Risk and Applera Corporation as Senior Treasury Analyst and Foreign Exchange Analyst. Mr. Walsh holds a BS in Business Administration from Stonehill College and an MBA from the University of Connecticut and is a Certified Treasury Professional.  
 

   EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adjusted EBITDA is defined as EBITDA adjusted for items management believes do not represent core operations. Management believes this measure is useful to evaluate the Company's performance.Adjusted Free Cash Flows is defined as cash provided by operating activities adjusted for capital expenditures 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 free cash flows is not necessarily indicative of the adjusted free cash flows that may be generated in future periods. Adjusted Net Debt is defined as the amount of debt after the consideration of the original issue discount, premiums, and debt issuance costs, less cash. Adjusted net debt is a non-GAAP measure of debt and is not necessarily indicative of the adjusted net debt that may occur in future periods.Adjusted Operating Income is defined as operating income adjusted for severance expense, acquisition related costs and fair market valuation of inventory.Adjusted Net Income is defined as net income adjusted net of tax for gain on bargain purchase, acquisition related costs, severance expense, fair market valuation of inventory, U.S. tax reform impact, and loss (gain) on derivative.Available Liquidity is defined as the funds available under the revolving credit facility and term loans, adjusted for cash on hand and outstanding letters of credit.   Definitions of Non-GAAP Measures  140 
 

 Reconciliation of Non-GAAP Measures($ Millions)  Twelve Months Ended:  Forest Products  Forest Products      Pulp  Pulp      Paper  Paper      High Purity Cellulose  High Purity Cellulose      Corporate & Other  Corporate & Other      Total  Total    December 31, 2018                                                Net Income  $  22      $  96      $  40      $  118      $  (148  )    $  128    Depreciation and amortization    7        4        18        119        —        148    Interest expense, net    —        —        —        —        60        60    Income tax expense    —        —        —        —        44        44    EBITDA  $  29      $  100      $  58      $  237      $  (44  )    $  380    Gain on bargain purchase    2        —        —        (2  )      (20  )      (20  )  Severance    —        —        —        —        4        4    Adjusted EBITDA  $  31      $  100      $  58      $  235      $  (60  )    $  364                                                    December 31, 2017                                                Net Income  $  —      $  4      $  —      $  117      $  204      $  325    Depreciation and amortization    1        1        2        93        —        97    Interest expense, net    —        —        —        —        38        38    Income tax expense    —        —        —        —        20        20    EBITDA  $  1      $  5      $  2      $  210      $  262      $  480    Acquisition related costs    —        —        —        —        34        34    Inventory write-up to fair value    5        6        6        6        —        23    Gain on bargain purchase    —        —        —        —        (317  )      (317  )  Gain on derivative instrument    —        —        —        —        (8  )      (8  )  Adjusted EBITDA  $  6      $  11      $  8      $  216      $  (29  )    $  212    141 
 

 Reconciliation of Non-GAAP Measures($ Millions)    December 31, 2018  December 31, 2018      December 31, 2017  December 31, 2017    Adjusted Net Debt Reconciliation                Current maturities of long-term debt  $  15      $  9    Long-term debt & capital lease obligation    1,173        1,232    Total debt  $  1,188      $  1,241    Original issue discount, premiums and debt issuance costs    5        5    Cash and cash equivalents    (109  )      (96  )  Adjusted Net Debt  $  1,084      $  1,150                                    142 
 

 Reconciliation of Non-GAAP Measures($ Millions)    December 31, 2018  December 31, 2018      December 31, 2017  December 31, 2017    Adjusted Free Cash Flows:                Cash provided by operating activities    247        130    Capital expenditures    (95  )      (65  )  Adjusted Free Cash Flows  $  152      $  65    143 
 

 Reconciliation of Reported to Adjusted Earnings($ Millions, except per share amounts)    Three Months Ended  Three Months Ended                                              Twelve Months Ended  Twelve Months Ended                              December 31, 2018  December 31, 2018              September 29, 2018  September 29, 2018              December 31, 2017  December 31, 2017              December 31, 2018  December 31, 2018              December 31, 2017  December 31, 2017            Adjusted Operating and Net Income (a):  $  $      Per Diluted Share  Per Diluted Share      $  $      Per Diluted Share  Per Diluted Share      $  $      Per Diluted Share  Per Diluted Share      $  $      Per Diluted Share  Per Diluted Share      $  $      Per Diluted Share  Per Diluted Share    Operating Income (b)  $  29              $  56              $  1              $  198              $  61            Severance expense    —                4                —                4                —            Acquisition related costs    —                —                21                —                34            Inventory write-up to fair value    —                —                23                —                23            Adjusted Operating Income (b)  $  29              $  60              $  45              $  201              $  118                                                                                                                                                                            Net Income   $  13      $  0.18      $  38      $  0.60      $  295      $  5.01      $  128      $  1.96      $  325      $  5.81    Severance expense    —        —        4        0.06        —        —        4        0.06        —        —    Gain on bargain purchase    —        0.01        (6  )      (0.10  )      (317  )      (5.37  )      (20  )      (0.31  )      (317  )      (5.66  )  Acquisition related costs    —        —        —        —        21        0.36        —        —        34        0.61    Inventory write-up to fair value    —        —        —        —        23        0.39        —        —        23        0.41    Loss (gain) on derivative instrument    —        —        —        —        8        0.14        —        —        (8  )      (0.14  )  U.S. tax reform impact    —        —        —        —        11        0.19        —        —        11        0.20    Tax effects of adjustments    —        —        (1  )      (0.02  )      (12  )      (0.22  )      (1  )      (0.01  )      (11  )      (0.21  )  Dilutive impact of Preferred Stock    —        —        —        —        —        —        —        —        —        (0.05  )  Adjusted Net Income  $  13      $  0.19      $  35      $  0.54      $  29      $  0.50      $  111      $  1.69      $  57      $  0.97                                                                                                                                                                    (a) Adjusted operating income and adjusted net income are not necessarily indicative of results that may be generated in future periods.  144