RYAM

Strategic Review (Top Priority)

• A comprehensive strategic review of all strategic and financial alternatives to maximize shareholder value is ongoing, progressing with urgency and discipline.
• The review is expected to conclude, with a clear path forward announced, in Q4 2026. New CEO Dan Krawczyk's appointment does not alter, delay, or narrow the review process; his mandate is to support the review, strengthen business performance during the process, and prepare for execution of the final selected path.

Core Business Strengths

• RIAM holds a leading, highly differentiated position in cellulose specialties, with hard-to-replicate assets, deep technical expertise, and decades-long strong customer relationships across critical end markets including pharmaceuticals, food, filtration, construction, and consumer products.
• RIAM is a key North American supplier of nitrocellulose-grade dissolving wood pulp for defense and industrial applications, reinforcing the strategic value of its assets.
• The company's employee base has deep specialized expertise and a focus on safety, quality, and reliability, forming a core competitive advantage.

Operational Improvement Initiatives

• A tangible pipeline of reliability, productivity, and cost improvement initiatives has been identified, including energy efficiency, process optimization, and automation. The goal is to improve operational efficiency and align production with the highest-value product mix, prioritizing markets where RIAM has the strongest competitive position.
• Selective advancement of biomaterials opportunities is ongoing, with a focus on projects that meet risk-adjusted return requirements; an example is the capital-light Altamaha green energy project that preserves upside without requiring additional cash equity from RIAM.

2026 Priorities

• Conclude the strategic review and announce a path forward in Q4 2026.
• Execute on the cellulose specialties leadership strategy via deeper customer partnerships and disciplined commercial execution.
• Build sequential improvement in business fundamentals, deliver positive full-year 2026 adjusted free cash flow, aligned with prior expectations.
• Exit 2026 with stronger earnings momentum and greater financial flexibility to evaluate potential 2027 refinancing alternatives.

• Full-year 2026 adjusted free cash flow is still expected to be positive, consistent with prior guidance, and the company remains on track to hit this target as performance momentum continues through the second half of 2026.
• Cellulose specialties pricing is expected to remain significantly above 2025 levels through the second half of 2026, with full-year pricing aligned with prior expectations. Second half 2026 CS volumes are projected to improve 10-15% compared to the first half, in line with expectations.
• Cellulose commodity market pricing has stabilized, with modest pricing improvement expected through the remainder of 2026.
• Paperboard market conditions are tightening, supporting a firmer pricing outlook for the second half of 2026, with a meaningful step-up in segment performance expected in the second half compared to the first half.
• The company expects improved earnings and cash generation performance in the second half of 2026, building a stronger foundation for 2027 and beyond.

1. High Purity Cellulose: Net sales reached $301 million, increasing $38 million sequentially and $29 million year-over-year, accounting for 80% of total Q2 2026 net sales. Adjusted EBITDA was $57 million, rising $33 million sequentially and $12 million year-over-year, with an adjusted EBITDA margin of 19% (up from 9% in Q1 2026 and 17% in Q2 2025). Cellulose specialties (CS) pricing increased 8% sequentially and 21% year-over-year, while CS sales volumes improved 19% sequentially but remained lower year-over-year due to value-based pricing initiatives. Cellulose commodity pricing improved 6% sequentially, and volumes nearly doubled year-over-year as operating rates improved.

2. Paperboard and High Yield Pulp: Net sales hit $75 million, growing $19 million sequentially and $7 million year-over-year, representing 20% of total Q2 2026 net sales. Adjusted EBITDA was negative $10 million, worsening from negative $5 million in Q1 2026 and negative $2 million in Q2 2025. Higher volumes were more than offset by lower pricing, planned maintenance, and market-related downtime. Paperboard pricing increased 3% sequentially and volumes improved 11% sequentially; high yield pulp volumes nearly doubled sequentially and increased 29% year-over-year (driven by shipment timing), while pricing remained under pressure.

3. Corporate and Other: Adjusted EBITDA improved 8 million year-over-year to negative $7 million.

• Elevated net leverage remains a key financial risk for the company, and performance must improve across portions of the product portfolio.
• Recently announced tariffs on Canadian-origin paperboard and high yield pulp products create material downside risk to the segment's economics; approximately 75% of the segment's shipments enter the U.S., and while mitigation plans are in place, final impact depends on the final scope and duration of the tariffs.
• The ultimate impact of new Section 301 tariffs on Brazilian and Norwegian dissolving wood pulp depends on downstream trade program availability and regulatory mechanisms, creating uncertainty for market competitiveness.
• Inflationary cost pressure remains a headwind that requires active mitigation via operational and cost improvement initiatives.
• Anti-dumping and countervailing duty proceedings are ongoing, with final outcomes still uncertain, creating market competitiveness uncertainty.
• Certain end markets served by the company continue to face macroeconomic challenges.

Q: Why was the new CEO hired, and what gives him confidence he can unlock shareholder value whether the company remains standalone or pursues another strategic path? Additionally, what is the expectation for CS volumes in the second half, and how important is 2026 positive free cash flow for 2027 refinancing positioning?

A: The CEO was hired specifically to support the ongoing strategic review and strengthen business performance during the process to maximize shareholder value, aligned with the board's mandate. He joined RIAM because of its strong, sticky differentiated position in cellulose specialties, tangible operational and commercial improvement opportunities, and upside from existing biomaterials investments, which matches his background leading transformation and value creation in specialty materials businesses. CS volumes are expected to improve 10-15% in the second half versus the first half, with a favorable customer and product mix. Achieving positive 2026 free cash flow is critical to boosting LTM EBITDA, which is required to position the company to access capital markets for refinancing on improved terms, though final outcomes will depend on capital market conditions and the strategic review result.

Q: How will sustained new U.S. tariffs on Brazilian and Norwegian dissolving wood pulp impact the U.S. CS market, and how does this change RIAM's strategy? Also, what is the risk of customer volume churn from RIAM's value-based pricing strategy heading into 2027?

A: If the tariffs are sustained, they will create fairer competitive conditions for U.S. suppliers like RIAM across cellulose specialty applications. RIAM's priority is ensuring a level playing field while supporting customer success. Heading into 2027, RIAM sees good volume momentum, and its long-standing customer relationships, broad product range, and focus on supply stability mean the company expects limited churn. Management anticipates solidifying customer positions via longer-term contracts and partnership growth.

Q: What is the size and current status of RIAM's opportunity in nitrocellulose for defense applications, and what is the company doing to grow this segment?

A: RIAM is the sole remaining U.S. supplier of dissolving wood pulp for nitrocellulose defense applications, making it a critical part of the U.S. and NATO defense industrial base. The product requires extremely strict purity and performance specifications, and RIAM is actively qualifying new grades across its facilities to expand supply capacity and flexibility for the U.S. Department of Defense. It is currently a high-value part of RIAM's cellulose specialties product mix.

Q: What needs to happen for the Paperboard and High Yield Pulp segment to move from negative EBITDA to modest profitability?

A: Management expects a meaningful performance improvement in the second half of 2026, driven primarily by commercial execution of new higher-value product lines including freezer board, oil and grease resistant grades, and softwood rolled high yield pulp. Tightening overall paperboard market conditions are also providing a modest pricing lift that will support the shift to profitability. Management is closely tracking new product qualification and order growth to close the profitability gap.