Sylvamo Corp (SLVM) 2026 Q2 法說會逐字稿

Good morning.

早安。

Thank you for standing by. Welcome to Sylvamo second quarter 2026 earnings call.

感謝各位稍候。歡迎參加 Sylvamo 2026 年第二季財報電話會議。

(Operator Instructions)

(接線員指示)

I would now like to turn the call over to Hans Bjorkman, Vice President of Investor Relations. Sir, the floor is yours.

現在我想把電話交給投資人關係副總裁 Hans Bjorkman。先生，時間交給您。

Thank you, Lucas. Good morning, and thank you for joining our call.

謝謝你，Lucas。各位早安，感謝加入我們的電話會議。

Our speakers this morning are John Sims, Chief Executive Officer, and Don Devlin, Senior Vice President and Chief Financial Officer. Slides 2 and 3 contain important information, including certain legal disclaimers.

今天上午的講者是執行長 John Sims，以及資深副總裁兼財務長 Don Devlin。投影片第 2 與第 3 頁包含重要資訊，包括特定法律免責聲明。

For example, during this call, we will make forward-looking statements that are subject to risks and uncertainties. We will also present certain non-U.S. GAAP financial information.

例如，在本次電話會議中，我們將作出前瞻性陳述，這些陳述受風險與不確定性影響。我們也將呈現若干非美國一般公認會計原則（non-U.S. GAAP）的財務資訊。

Reconciliations of those figures to U.S. GAAP financial measures are available in the appendix. Our website also contains copies of the earnings release as well as today's presentation.

這些數字與美國一般公認會計原則（U.S. GAAP）財務衡量指標之間的調節表可在附錄中取得。我們的網站也提供財報新聞稿以及今日簡報的副本。

With that, I would like to turn the call over to John.

接下來，我想把電話交給 John。

Thank you, Hans, and good morning, everyone.

謝謝你，Hans，各位早安。

I am glad that you are on the call. And so I am on Slide 4, that is where I am starting. Our second quarter highlights include continuing to implement the policy communicated uncoded free sheet price increases to our customers across all our regions. We also advanced our lean transformation journey to embed continuous improvement into how we run the business so performance improvement becomes employee-driven, systematic and self-sustaining.

很高興各位參與本次電話會議。我現在在投影片第 4 頁，將從這裡開始。我們第二季的重點包括：持續在所有地區對客戶落實我們已溝通的非塗佈無木紙（uncoated free sheet）漲價政策。我們也推進精實轉型旅程，將持續改善內嵌到我們的營運方式中，使績效提升由員工驅動、系統化且可自我延續。

We kicked off our lean efforts in our Latin America business and have value stream mapping underway at our Mogi Guasu and Tres Lagos mills to identify waste and unlock cost savings across end-to-end processes. In North America, we introduced lean at our Ticonderoga New York mill and our cut-sized seed plant in Sumter, South Carolina and across corporate functions.

我們在拉丁美洲業務啟動精實工作，並在 Mogi Guasu 與 Tres Lagos 紙廠進行價值流程圖（value stream mapping），以辨識浪費並在端到端流程中釋放成本節省。在北美，我們在紐約州 Ticonderoga 紙廠、南卡羅來納州 Sumter 的裁切尺寸紙廠，以及各公司職能部門導入精實。

Lastly, we continue to make very good progress on our strategic investments at our East Silver mill. Which we will discuss in more detail later on this call.

最後，我們在 Eastover 紙廠的策略性投資也持續取得非常良好的進展。我們將在本次電話會議稍後更詳細說明。

Slide 5 shows our second quarter key financial metrics. 2026 is a transition year to work through the termination of Riverdale Supply Agreement and the extended outage at Eastover. Adjusted EBITDA more than doubled sequentially to $60 million with a margin of 7%. Adjusted operating earnings were $0.03 per share. Free cash flow was negative $23 million, a $36 million improvement sequentially. And as in prior years, the majority of our free cash flow will be generated in the second-half of this year.

投影片第 5 頁顯示我們第二季的關鍵財務指標。2026 年是過渡年，用以因應 Riverdale 供應協議終止以及 Eastover 的延長停機。調整後 EBITDA 較前一季增加逾一倍至 6,000 萬美元，利潤率為 7%。調整後營業利益為每股 0.03 美元。自由現金流為負 2,300 萬美元，較前一季改善 3,600 萬美元。且如同以往年度，我們大部分的自由現金流將在今年下半年產生。

Now I will turn it over to Don to review our performance in more detail, Don.

現在我把時間交給 Don，更詳細檢視我們的表現。Don。

Thank you, John, and good morning, everyone. Slide 6 contains our second quarter earnings bridge versus the first quarter. In the second quarter, we earned $60 million of adjusted EBITDA compared to $29 million in the prior quarter. Price and mix were favorable by $32 million, reflecting the implementation of paper price increases in all regions. Better mix in the Americas, as well as the implementation of price increases in Europe. Volume increased by $3 million, driven by seasonally stronger demand in Latin America.

謝謝你，John，各位早安。投影片第 6 頁為我們第二季相較第一季的獲利橋接分析。第二季我們的調整後 EBITDA 為 6,000 萬美元，前一季為 2,900 萬美元。價格與產品組合帶來 3,200 萬美元的正面影響，反映所有地區紙品漲價的落實。其中包括美洲較佳的產品組合，以及歐洲漲價的落實。銷量增加帶來 300 萬美元的正面影響，主要由拉丁美洲季節性較強的需求所帶動。

Operations and costs were favorable by $22 million, largely driven by green energy credits in Europe and lower overhead. Planned maintenance outage costs were unfavorable by $24 million due to scheduled outages in all regions. Input and transportation costs were unfavorable by $2 million as energy costs were stable while purchased wood in Latin America and transportation costs in North America were higher. These were partially offset by the non-repeat of a one-time charge of $10 million from International Paper's Riverdale Mill due to high natural gas costs in the first quarter.

營運與成本帶來 2,200 萬美元的正面影響，主要受惠於歐洲的綠能抵減額度以及較低的間接費用。計畫性維修停機成本帶來 2,400 萬美元的負面影響，因所有地區皆有排程停機。投入成本與運輸成本帶來 200 萬美元的負面影響，因能源成本持平，但拉丁美洲外購木材成本與北美運輸成本較高。上述部分被第一季因天然氣成本高而在 International Paper 的 Riverdale 紙廠認列一次性 1,000 萬美元費用於本季不再發生所抵銷。

Let us move to slide 7 to walk through the industry conditions. European industry supply and demand remains challenging. Oil prices improved throughout the first half and now seem stable. We continue realizing paper price increases, and we communicated another paper price increase effective mid-June as costs continue to increase and margins are at unacceptable levels. We expect the realization to occur through the third quarter. In Latin America, we expect seasonally higher demand through the second-half. This should positively impact our volume and geographic mix. We continue realizing paper price increases to our export customers across other Latin American countries as well as the Middle East and Africa region and should continue to see additional realization through the third quarter.

我們看投影片第 7 頁，說明產業狀況。歐洲產業供需仍具挑戰。油價在上半年持續改善，目前看來趨於穩定。我們持續實現紙品漲價，並在成本持續上升且利潤率處於不可接受水準的情況下，已溝通另一波紙品漲價，自 6 月中旬生效。我們預期漲價落實將延續至第三季。在拉丁美洲，我們預期下半年需求將呈現季節性走強。這將對我們的銷量與地理組合帶來正面影響。我們也持續對拉丁美洲其他國家以及中東與非洲地區的出口客戶實現紙品漲價，並應可在第三季持續看到更多落實。

In North America, industry supply and demand dynamics have improved as 7% of the annual uncoated free sheet industry supply was removed with International Papers Riverdale Mill paper machine conversion. In the second quarter, we saw imports into North America increasing compared to the previous quarter, a reaction to the 10% global tariff window. We also continue realizing paper price increases and expect to see additional realization through the third quarter. We expect the Middle East conflict to continue pressuring energy, chemicals, and transportation costs across our regions as we go through the year.

在北美，產業供需動態已改善，因 International Paper 的 Riverdale 紙廠紙機轉換，使非塗佈無木紙產業年供給量減少 7%。第二季我們看到北美進口量較前一季增加，係對 10% 全球關稅窗口的反應。我們也持續實現紙品漲價，並預期第三季仍會有更多落實。我們預期中東衝突在今年期間將持續對各地區的能源、化學品與運輸成本造成壓力。

As we move through the second-half of the year, we expect better earnings across most of our key drivers. This slide provides some perspective to how we see the second-half of the year as compared to the first half. Price and mix should have a significant improvement with the price realization we have seen across all our regions and will continue into the third and fourth quarters. In addition, our mix in both Latin America and North America should be significantly better in the second-half.

隨著進入下半年，我們預期在多數關鍵驅動因素上獲利將更佳。本頁提供我們對下半年相較上半年的看法。價格與產品組合應會顯著改善，因我們在所有地區已看到的漲價落實，並將延續至第三與第四季。此外，拉丁美洲與北美的產品組合在下半年也應會明顯改善。

Overall, we expect to have $75 million to $85 million benefit from better price and mix compared to the first half. Volume should have positive momentum given stronger seasonality in Latin America, which will be partially offset by less volume in North America due to the loss of the Riverdale volume and the extended outage at Eastover in the fourth quarter. Operations and other costs are also expected to be much better in the second-half.

整體而言，相較上半年，我們預期更佳的價格與產品組合將帶來 7,500 萬至 8,500 萬美元的效益。銷量方面，拉丁美洲較強的季節性將帶來正向動能，但部分會被北美銷量下降所抵銷，原因包括 Riverdale 銷量流失，以及第四季 Eastover 的延長停機。營運與其他成本在下半年也預期會好轉許多。

Operational issues we had in the first half are now behind us with the exception of the deparking drum at Numala. Planned maintenance outages will be unfavorable by approximately $5 million as we execute our heaviest planned outage quarter and take the extended downtime at our Eastover mill to complete the paper machine investments. Input and transportation costs are expected to be favorable with lower fiber costs in Latin America and Europe. More than offsetting unfavorable energy, chemicals, and transportation due to the Middle East conflict across all regions. In total, we expect a much better earnings performance for the last six months of the year.

我們在上半年遇到的營運問題目前已經過去，唯 Numala 的去皮滾筒（deparking drum）除外。計畫性維修停機預期將帶來約 500 萬美元的不利影響，因我們將執行全年最重的計畫停機季度，並在 Eastover 紙廠進行延長停機以完成紙機投資。投入與運輸成本預期將有利，因拉丁美洲與歐洲的纖維成本較低。這將足以抵銷因中東衝突導致各地區能源、化學品與運輸成本上升的不利影響。總體而言，我們預期今年最後六個月的獲利表現將明顯更佳。

I will now turn it over back to John to talk about our strategic investments at Eastover and our long-term focus. John.

現在我把時間交回給 John，談談我們在 Eastover 的策略性投資以及長期重點。John。

Thank you, Don.

謝謝你，Don。

I will pick back up on slide 9. Our eServer strategic investments, including our Woodyard modernization and paper machine optimization and new sheet are continue to make good progress. Starting with the Woodyard, the hardwood line has been performing extremely well since May, and we are seeing improved reliability and chip quality. The Woodyard softwood line startup remains on schedule for the first quarter next year. The paper machine speedup project remains on schedule, on budget, and will be completed during our fourth quarter maintenance outage.

我將從投影片第 9 頁接續。我們在 Eastover 的策略性投資，包括木材場（Woodyard）現代化、紙機最佳化以及新的紙張整理（sheet）相關項目，持續取得良好進展。先從木材場開始，闊葉材產線自 5 月以來表現非常出色，我們看到可靠度與木片品質提升。木材場針葉材產線的啟動仍按計畫於明年第一季進行。紙機提速專案仍按進度、按預算推進，並將在我們第四季的維修停機期間完成。

This will result in 60,000 additional tons of uncoded free sheet capacity annually, which will start to ramp up early next year. The benefits including reducing costs, improving our mix and efficiency while enhancing service for our customers.

這將使每年新增 60,000 噸未塗佈自由紙產能，並將於明年初開始逐步爬坡。其效益包括降低成本、改善我們的產品組合與效率，同時提升對客戶的服務。

Also, within our e-service strategic investments, the new Sheder project continues to make good progress. The Sheder passed equipment acceptance testing in June, arrived in the U.S. A few weeks ago, and the teams are preparing for the installation. We expect $50 million of annual benefits from the paper machine speedup and a new Sheder. We estimate roughly $30 to $40 million of that in 2027.

此外，在我們的電子服務策略性投資中，新的 Sheder 專案持續取得良好進展。Sheder 已於 6 月通過設備驗收測試，數週前抵達美國，團隊正準備進行安裝。我們預期紙機提速與新增 Sheder 每年可帶來 5,000 萬美元的效益。我們估計其中約 3,000 萬至 4,000 萬美元將在 2027 年實現。

Lastly, we completed a sale leaseback transaction with a third-party for existing sheet plant to expand the attached warehouse by 300,000 square feet. A third-party is investing the capital to expand the facility and will lease it back to us. The project will reduce supply chain costs, improve service to our customers while providing additional flexibility.

最後，我們與第三方就既有的裁切廠完成一筆售後回租交易，以將相連倉庫擴建 300,000 平方英尺。第三方將投入資本擴建該設施，並再回租給我們。該專案將降低供應鏈成本、提升對客戶的服務，同時提供額外的彈性。

We expect this expansion to be completed in the first quarter of 2027 and contribute upwards of $5 million in savings per year. These four projects will generate $55 million of benefits per year. These strategic investments are high-return projects which will generate incremental earnings and cash flow for the long run.

我們預期此擴建將於 2027 年第一季完成，並每年貢獻超過 500 萬美元的節省。這四個專案每年將產生 5,500 萬美元的效益。這些策略性投資屬於高報酬專案，將在長期帶來增量獲利與現金流。

In my letter to share owners in January, I described the areas that define our success: safety and well-being, employee engagement, customer centricity, operational excellence, cost leadership, and sustainability.

在我 1 月致股東的信中，我描述了界定我們成功的領域：安全與福祉、員工敬業度、以客戶為中心、營運卓越、成本領先，以及永續發展。

As we aim to achieve world-class performance in areas that matter to SAVAMO, we have set clear goals for each one. Today, I want to share with you what we are working toward and how we will measure our progress to achieve these by 2030. Safety and well-being is our most important responsibility.

為了在對 SAVAMO 重要的領域達到世界級表現，我們已為每一項設定明確目標。今天，我想與各位分享我們努力的方向，以及我們將如何衡量進展，以在 2030 年前達成這些目標。安全與福祉是我們最重要的責任。

Our goal is to have a resilient safety culture in which serious injuries are eliminated. If we eliminate serious injuries, it will be because our employees truly care and are aligned on relentlessly pursuing excellence. On employee engagement, we have nearly achieved world-class engagement with an employee net promoter score of 46. Our focus would be greater than 50. While we strengthen the capability and readiness of our teams and tap into their talents to help us achieve world-class performance.

我們的目標是建立具韌性的安全文化，消除嚴重傷害。若能消除嚴重傷害，將是因為我們的員工真正關心並在不懈追求卓越上保持一致。在員工敬業度方面，我們的員工淨推薦值（eNPS）為 46，幾乎已達到世界級敬業度。我們的目標是高於 50。同時，我們將強化團隊的能力與準備度，並發揮其才能，協助我們達成世界級表現。

On customer centricity, we are setting a new standard for customer experience and loyalty. We will measure it through our customer Net Promoter Score and through our perfect order performance, delivering complete on time and without defect. We are targeting a 20-point improvement in Net Promoter Score. And higher than 90% on the perfect order.

在以客戶為中心方面，我們正在為客戶體驗與忠誠度建立新標準。我們將透過客戶淨推薦值（NPS）以及完美訂單表現來衡量，也就是完整、準時且無瑕疵地交付。我們的目標是 NPS 提升 20 個百分點。完美訂單則要高於 90%。

On operational excellence, we are targeting improving overall machine efficiency by 400 basis points. This is a measure of how well our assets run. On cost leadership, we challenge ourselves to set an aggressive goal in order to drive margin improvement despite the significant inflationary cost pressures.

在營運卓越方面，我們的目標是將整體機台效率提升 400 個基點。這衡量的是我們資產運轉的良好程度。在成本領先方面，儘管面臨顯著的通膨成本壓力，我們仍要求自己設定具挑戰性的目標，以推動毛利率改善。

Our goal Is to achieve three to five times our 2022 through 2025 average annual cash cost improvement rate. This will be enabled by our lean and digital transformation efforts. Lastly, on sustainability, we will continue to operate responsibly to uplift communities and improve the planet every year, underpinning all six. Or a talented team, lean management and digital transformation.

我們的目標是達到 2022 至 2025 年平均年度現金成本改善率的三到五倍。這將透過我們的精實與數位轉型努力來實現。最後，在永續發展方面，我們將持續以負責任的方式營運，每年提升社區並改善地球，並作為六大面向的基礎。或是一支有才華的團隊、精實管理與數位轉型。

As you are aware, it has been a very dynamic year where we have been adopting and executing the initiatives that are under our control. We are focused on generating strong, sustainable results and long-term value by making disciplined, data-driven decisions that strengthen Savama for decades to come.

如各位所知，今年變化非常快速，我們一直在採納並執行我們可控範圍內的各項措施。我們專注於透過紀律嚴明、以數據為依據的決策，強化 Savama 未來數十年的競爭力，以創造強勁、可持續的成果與長期價值。

We will do this by diligently executing our flagship growth strategy, adhering to our disciplined capital allocation, institutionalizing lean continuous improvement. As industry conditions turn, capital spending normalizes and the benefits from our investments begin to materialize, we have the potential to generate annually over $300 million of free cash flow and greater than 15% return on invested capital.

我們將透過勤勉執行我們的旗艦成長策略、遵循嚴謹的資本配置、制度化精實持續改善來達成。隨著產業狀況回轉、資本支出正常化，以及投資效益開始顯現，我們有潛力每年產生超過 3 億美元的自由現金流，並達到高於 15% 的投入資本報酬率。

So with that, I will turn the call back to you on.

那麼，接下來我把電話交回給你，Jon。

(Operator Instructions) Daniel Harriman, Sidoti.

（接線員指示）Daniel Harriman，Sidoti。

Hey, guys. Good morning.

嗨，各位。早安。

Thank you so much for taking my questions. I will start with two. In North America, margin was up at 15% versus 10% in the first quarter. And I am curious if you could add more color on what drove this improvement and how much was price and mix versus maybe lower sourcing costs from bringing product in from Brazil rather than Europe.

非常感謝讓我提問。我先問兩個問題。北美的利潤率從第一季的 10% 提升到 15%。我想請你們多補充一些細節，說明是什麼推動了這項改善，以及其中有多少來自價格與產品組合，或是因為把產品從巴西而非歐洲進口而帶來較低的採購成本。

And then leverage finished the quarter at 2.2 times with most of the free cash flow for the year expected in the back half. Can you give us a better idea of how much of the first half working capital build reverses and where you expect to end the year on leverage? Thanks.

另外，槓桿倍數在本季末為 2.2 倍，而今年大部分自由現金流預期會在下半年實現。你們能否更清楚說明上半年營運資金增加有多少會回轉，以及你們預期年底槓桿倍數會落在什麼水準？謝謝。

Yeah, Daniel, I will take your second question first. This is Don, and good morning. So the working capital build will unwind by the end of the year mostly, and as we talked about in an earlier call, that is due to the Eastover machine speed up project building inventory through what was first quarter, second quarter, and will start to draw down. Fourth quarter, it should be pulled out.

好的，Daniel，我先回答你的第二個問題。我是 Don，早安。營運資金的增加到年底大多會回轉；如同我們在先前的電話會議提到的，這是因為 Eastover 紙機提速專案在第一季、第二季期間建立庫存，接下來會開始去化。到第四季應該就會把庫存拉回來。

And your first question, back to North America, the margin improvement from first to second quarter, it was largely price and mix and lower operations costs and a bit of lower input costs. But the key driver is price and mix for North America going into Q2 from 1.

至於你的第一個問題，回到北美，利潤率從第一季到第二季的改善，主要來自價格與產品組合、較低的營運成本，以及些許較低的投入成本。但關鍵驅動因素是北美從第一季到第二季的價格與產品組合。

Just give a little bit more color, Daniel, on the working capital. North America is where we built the biggest inventory. It is about 50,000 tons, and we expect to draw down the second-half. We will draw down the second-half.

再補充一點關於營運資金的細節，Daniel。北美是我們建立最多庫存的地區。大約是 50,000 噸，我們預期在下半年去化。我們會在下半年去化。

Matthew McKellar, RBC Capital Markets.

Matthew McKellar，RBC Capital Markets。

Hi, good morning. Thanks for taking my questions.

嗨，早安。謝謝讓我提問。

It sounds like you are expecting lower North American volumes in the second-half of the year. If I have understood your comments on slide 8 correctly, is that sales volumes or production? And can I ask what the bogey might be for North American volumes at this point? Thanks.

聽起來你們預期北美下半年的出貨量會較低。如果我對你們在投影片 8 的評論理解正確，那指的是銷售量還是產量？另外我想請問，目前北美的量大概會落在什麼基準水準？謝謝。

Yeah, Matthew, thanks for the question. So on North American volume, so it will be both because.

好的，Matthew，謝謝你的問題。關於北美的量，會是兩者都會，因為。

Both production, lower production and lower sales. And, we have Riverdale's gone. that is not our production, but the supply from Riverdale is gone, but that will impact sales in the second-half. And, of course, we have got the Eastover outage, which is now, it is longer than we thought we originally planned for 45 days. It'll be a bit longer than that. So, that will reduce production as well for North America, and a bit of that flows through sales and volumes will be lower for those two main reasons.

兩者都會：產量較低、銷售也較低。而且 Riverdale 已經退出了；那不是我們的產量，但來自 Riverdale 的供應已經沒有了，這會影響下半年的銷售。當然，我們還有 Eastover 的停機檢修，目前時間比我們原先規劃的 45 天更長。會比那再長一些。因此，這也會降低北美的產量，其中一部分會反映到銷售端，基於這兩個主要原因，出貨量將會較低。

And one other point would be, Don, is that, during this fair situation, it is gone with IEFA going away, we were able to take advantage of that and move some volume from our Brazilian operations. But now, within the new tariffs that are in fact, we said it is not economical. So we are absolutely bringing in less volume from Europe and Brazil than we expected it. So there'll be a little bit less than that.

另外還有一點，Don，就是在先前那段有利情況下，隨著 IEFA 退出，我們得以把握機會，將部分產量從我們在巴西的營運移轉過來。但現在在新的關稅確實生效之下，我們說過這在經濟上不划算。因此，我們從歐洲和巴西進口的量，絕對比我們原先預期的要少。所以會比那個數字再少一點。

I think your second question relative to North American volume as well, if you think about the impact of Riverdale going away, so that supply is gone and I think we go from.

我想你第二個問題也與北美的出貨量有關；如果你考慮 Riverdale 退出的影響，那部分供應就消失了，我想我們會從……

What was about a little less than 100,000 times this year, so that goes away. It was 90, I think, through April, and we won't have that in twenty-seven, but yet we will have the speed up from east over the plan from speed up was a total of 60. We won't get all of that next year as we will be ramping up once we come out of the project in the quarter, but eventually those two things will be a net.

今年大約略低於 100,000 噸左右，所以那部分會消失。我記得到四月是 90,000 噸，而在二七年我們不會有那個量；但同時，我們會有 Eastover 的加速（speed up）計畫帶來的增量，該加速的總量是 60,000 噸。明年我們不會立刻拿到全部，因為我們在該季度專案結束後仍會逐步爬坡，但最終這兩件事加總起來會是淨……

Okay, so if I think about the Q4 25 presentation where you talked about 1.17 million tons of North American sales, I think it was, the variance is primarily a longer outage at Eastover and then less volumes coming in from Latin America and Europe than you would anticipated.

好的，所以如果我回想你們在 25 年第四季簡報中提到北美銷售 117 萬噸（我記得是這個數字），差異主要是 Eastover 停機時間更長，以及從拉丁美洲和歐洲進來的量比你們原先預期的更少。

that is right.

沒錯。

Okay.

好的。

And we also got slightly less tons from Riverdale, which we already experienced. But Riverdale, I think in that slide, we were assuming 100,000 tons before they converted and they delivered about 90,000. But that impact has already been felt.

而且我們從 Riverdale 拿到的噸數也略少一些，這我們其實已經經歷過了。不過 Riverdale，我想在那張投影片裡，我們假設在他們轉換之前是 100,000 噸，但實際交付大約 90,000 噸。但那個影響已經反映過了。

Okay, got it.

好的，了解。

Thank you.

謝謝。

Next, it sounds like you have pricing as a tailwind across each segment into Q3.

接下來，聽起來你們在第三季各個事業部門的定價都有順風。

Could you maybe spend a minute just running through what price is currently announced depending in the markets? Maybe talk about how price should trend sequentially by the region, either on average or as you execute Q3 in comparison to where you were in Q2.

你能否花一點時間說明一下目前各市場已宣布的價格情況？也請談談各區域的價格從第二季到第三季，按季的走勢會如何——不論是平均來看，或是第三季執行過程中相較第二季的位置。

Thank you.

謝謝。

Yeah, so Matthew, I will start with how we see the price in the second-half. So we said $75 to $85 million incremental, which is both mix and price.

好的，Matthew，我先從我們對下半年的價格看法開始。我們提到增量 7,500 萬到 8,500 萬美元，這包含產品組合與價格兩部分。

I would say 70% of that is price, and the majority of that is North America and then Europe as well, which we will see some flow through.

我會說其中 70% 來自價格，而大部分來自北美，另外歐洲也會有一些傳導反映。

And your second question.

至於你第二個問題……

Can you repeat your second question?

你可以再重複一下第二個問題嗎？

Yeah, it was kind of tied together. It was, I mean, what is announced and pending in the markets and then, how pricing trends sequentially by region from Q2 into Q3. I don't know if you would like to express that.

可以，這兩個其實是連在一起的。也就是：市場上已宣布與待定的調價有哪些，以及各區域的定價從第二季到第三季按季會怎麼走。我不確定你是否方便用那樣的方式來表達。

Thank you.

謝謝。

Yeah, so I think we have a third price increase that is going through in Europe.

好的，我想我們在歐洲正在推進第三次漲價。

So that is being implemented right now. We are actually seeing that in the month of July. So we will see that through. And LATAM, we are seeing in the Ola markets and MEA. And that is MEA realized in the third quarter. We are seeing that now. And the same thing with the second price increase that we had in North America.

所以這正在落地執行中。我們其實在七月份就已經看到反映。因此我們會看到它持續傳導。而在拉丁美洲，我們在 Ola 市場以及 MEA 也看到（調價）。其中 MEA 會在第三季實現。我們現在就正在看到。北美方面也是一樣，我們先前的第二次漲價也是如此。

that is being mostly implemented in the third quarter. So most of these prices, the 85, 75 to 85 that Don talked about, a lot of that pricing is we are seeing that flow through in the third quarter. Then that will kick that, would be relatively flat and carry into the fourth quarter.

那主要會在第三季落地。所以這些價格——也就是 Don 提到的 7,500 萬到 8,500 萬——其中很大一部分的定價效益，我們會在第三季看到傳導反映。之後會趨於相對持平，並延續到第四季。

Okay, perfect.

好的，完美。

Thanks for that.

謝謝你的說明。

It lasts for me, on slide 8 again here, under input and transportation costs, it sounds like lower fiber costs will only partially be offset by higher energy, chemicals, and transportation costs. It sounds like that benefit is specific to Europe and Latin America. Could you help us understand what's happening with fiber costs and how they are favorable in the back half?

最後一個問題，還是回到第 8 張投影片，在投入與運輸成本之下，聽起來較低的纖維成本只會被較高的能源、化學品與運輸成本部分抵銷。聽起來這個好處主要發生在歐洲與拉丁美洲。你能幫我們理解纖維成本發生了什麼變化，以及為何在下半年會更有利嗎？

Thank you.

謝謝。

Yeah, Matthew, and I will start with Europe. So, we have had a deliberate effort, especially in our numeral mill, to reduce fiber costs there. And I think a lot of what we are seeing in the second-half and into the fourth quarter is the benefits of that, both market decreases and actions we have taken.

好的，Matthew，我先從歐洲說起。我們一直有一個刻意的努力，特別是在我們的 numeral 廠，去降低那裡的纖維成本。我想我們在下半年以及進入第四季所看到的，很大一部分就是這些成果的體現，包含市場價格下滑以及我們採取的行動。

So we will see that benefit second-half in Europe. And then in Latin America, we had some higher costs in Q2. Related to some of our outside wood purchases, they were, I would say, unusual, and we don't expect those to occur again in the second-half, so we will be normalized in Latin America. As most of our Latin American fiber is own-make.

所以我們會在歐洲於下半年看到這個效益。而在拉丁美洲，我們在第二季有一些較高的成本。那與我們部分外購木材有關；我會說那是比較不尋常的情況，我們不預期下半年會再發生，所以拉丁美洲的成本會回到正常水準。因為我們拉丁美洲的大部分纖維是自製自供。

This would be maybe a little bit more. we have seen a decrease of about 20% since its peak, let us say, in the fourth quarter last year, but it takes six months or so for it to start to impact our operations, and that is why we are seeing it in the third quarter.

再補充一點：自去年第四季的高點以來，我們看到大約 20% 的下降，但通常需要大約六個月左右才會開始影響到我們的營運，這也是為什麼我們會在第三季看到反映。

Okay. Thanks for the color. I will turn it back.

好的。謝謝補充說明。我把時間交回去。

Mike Roxland, Truist Securities.

接下來是 Truist Securities 的 Mike Roxland。

Yeah, thanks, John, Don, and Hunt for taking my questions, and congrats on all the progress.

好的，謝謝 John、Don 和 Hunt 回答我的問題，也恭喜你們在各方面的進展。

I think, about 18 months ago, I guess you hired a new head of EU, and then you also established something specifically followed by.

我想大約 18 個月前，你們應該聘請了一位新的歐盟（EU）負責人，然後你們也成立了某個專門跟進……

A decision on the EU strategic review. So that really implies then a timeline that you will have a decision made regarding the EU and what's happening with your European operations around end of year. So can you give us an update as to where that process stands, what the different options are in terms of do you think you are going to continue to put money into those two assets or are you considering shutting them or selling them?

關於 EU 策略檢討的決策。所以這其實暗示了一個時間表：你們會在年底左右就 EU 以及歐洲營運的走向做出決定。你能否更新一下目前流程進展到哪裡、有哪些不同選項？例如你們是否打算繼續對那兩項資產投入資金，或是在考慮關閉或出售？

Because from our understanding of the cash cost of. Closing the asset seems to be manageable and would roughly imply a two-year payback and probably would be the most accretive option for shareholders. So any call you have on your European operations and your plans there?

因為依我們對現金成本的理解，關閉資產的成本似乎是可控的，大致意味著約兩年的回收期，而且可能會是對股東最具增益（accretive）的選項。所以你們對歐洲營運以及那邊的計畫，有任何看法可以分享嗎？

Yeah, Mike, I think you characterized it correct in that we said that we were not happy with the performance with our European operations, but this time last year we made significant management change because we wanted to see.

好的，Mike，我想你的描述是正確的：我們說過我們對歐洲營運的表現並不滿意，但在去年這個時候我們做了重大的管理層調整，因為我們想看到……

Accelerated performance, and I have to say that we made a great change. We are seeing accelerated performance. we are focusing on our strategy there, which is mixed improvement when enabled by the investments we made at our SIOT mill. We actually had a plan there. we are also looking at implementing significant cost reductions that we are seeing both at.

更快的績效改善，而我必須說我們做了一個很好的改變。我們確實看到績效加速改善。我們正聚焦於那邊的策略，也就是在我們對 SIOT 廠所做投資的支持下，改善產品組合。我們在那裡其實有一個計畫。我們也在評估並推動顯著的成本削減，我們在……也看到了相關成效。

Increased productivity and also efficiency, and then we just talked about it, the wood cost. Let us say online that with our strategy, it is being executed and being executed much better and well.

提高了生產力與效率，然後我們剛才也談到木材成本。比方說在線上，以我們的策略來看，正在執行，而且執行得更好、更到位。

But, as we said, the conditions are difficult in Europe, and we are looking at the long-term is. Are we satisfied with where we think we can get? And we will probably would be looking at somewhere in 2027, if we are not satisfied with the outlook that we have got, that we may pursue other options. And those other options are just about essentially everything that you named.

但是，如同我們所說，歐洲的情況很艱難，而我們著眼的是長期。我們對於我們認為能達到的水準滿意嗎？如果我們對目前得到的展望不滿意，我們很可能會在大約 2027 年左右，去尋求其他選項。而那些其他選項，基本上就是你所提到的幾乎所有事情。

It is not like we are starting.

這不是說我們才剛開始。

I mean, we have been looking at that, but it is probably in 2027 we will make the call.

我的意思是，我們一直在看這件事，但大概會在 2027 年做出決定。

Got it. Okay, so a little bit longer than the 18 months you initially outlined. Do you think it is going to be early 2017 in terms of making a determination? And then just one quick thing, John, in terms of the cost redux that you have achieved there, what are you ultimately targeting? Like, you have achieved a certain amount already. What are your targets in terms of improving the overall cost structure of your?

了解。好，所以比你一開始提到的 18 個月要長一些。你認為在做出判斷方面，會是 2017 年初嗎？另外再快速問一點，John，關於你們在那邊已經達成的成本縮減（cost redux），你們最終的目標是什麼？例如，你們已經達成了一定的幅度。你們在改善整體成本結構方面的目標是什麼？

Well, I mean, when we look at what we are targeting, we probably need, somewhere between $50 million or so we can be where we are. And it is not just cost reduction, it is mixed improvement, it is other things that go into that to get us at significantly above cash positive on a mid-cycle basis and greater cost of capital returns.

嗯，我的意思是，當我們看我們的目標時，我們大概需要在 5,000 萬美元左右，才能達到我們想要的位置。而且不只是降成本，還包括產品組合改善，以及其他能讓我們在中週期基礎上顯著高於現金損益兩平、並帶來高於資本成本報酬的各種因素。

Yeah, I don't want to lock myself down, into, because we are making and looking at our focus is on Europe. We understand that the issue, so I don't want to lock down the timeline. Things could be sooner, things could be later, it depends on. How things play out, but that is I don't really want to commit to a certain date if you don't mind.

是的，我不想把自己鎖死在某個時間點上，因為我們正在做、也在看，我們的重點在歐洲。我們理解這個問題，所以我不想把時間表定死。事情可能更早，也可能更晚，取決於……事情如何發展，但如果你不介意的話，我真的不想承諾某個特定日期。

Totally understand. Two quick questions and then I will just turn it over. You guys mentioned $75 to $85 million from better price mix in the second-half over the first half.

完全理解。兩個快速問題，然後我就把時間交出去。你們提到下半年相較上半年，較佳的價格/組合可帶來 7,500 萬到 8,500 萬美元。

Any way to help quantify the benefit from, better volumes, better opt-in costs, better input costs? Anyway, just quantify that in the second-half versus the first half. And then the second question, the. Poison pill ends in November. What's your plan regarding the poison pill? I mean, and if you have a great, good relationship with your larger shareholder and they are interested in purchasing more shares, why stop them?

有沒有辦法協助量化：更好的銷量、更好的選擇性成本（opt-in costs）、更好的投入成本所帶來的效益？也就是量化一下下半年相較上半年的差異。然後第二個問題是，毒丸條款在 11 月到期。你們對毒丸條款的計畫是什麼？我的意思是，如果你們和大股東關係很好，而且他們有興趣再買更多股票，為什麼要阻止他們？

Thank you.

謝謝。

So, Mike, relative to the second-half quantifying call, so we wanted to give you give.

所以，Mike，關於下半年量化的問題，我們想要給你、給……

Analysts and investors a sense of the 75 to 85 on price and mix because one, it is big, two, we are confident prices are in place and we will see that carry through. we are confident on the plant maintenance outages. that is something that we typically execute well on the volume and ops and other costs inputs. There's more uncertainty. We are leaning in. we are confident in our forecast, but we chose not to provide specific guidance there.

分析師和投資人一個對價格與組合 7,500 萬到 8,500 萬的概念，因為第一，它很大；第二，我們有信心價格已經到位，並且會持續反映出來。我們也對工廠維修停機有信心，那是我們通常在產量、營運以及其他成本投入方面執行得很好的項目。但其他部分不確定性更高。我們正積極推進，我們對預測有信心，但我們選擇不在那部分提供具體指引。

And to your other question about, yeah, the children rights plan.

至於你另一個問題，對，關於股東權利計畫。

Yeah, the plan remains in place. The board hasn't made it yet a decisional.

對，該計畫仍然有效。董事會尚未做出決定。

What we are going to do in terms of when it does expire at the end of November, that will be something we will address with the board when we meet in September.

至於在 11 月底到期時我們要怎麼做，那會是我們在 9 月開會時與董事會討論處理的事項。

Thank you.

謝謝。

George L. Staphos, Bank of America Securities.

George L. Staphos，美國銀行證券。

Hey, guys. How are you?

嗨，各位。你們好嗎？

Thanks for the details.

謝謝你們提供的細節。

I will ask two questions and then I will come back and queue.

我會問兩個問題，然後再回到隊列裡。

First of all, we appreciate you actually providing the pricing guidance that is helpful. John, Don, if I heard you correctly, most of that hits in 3Q. It incorporates what you have in the market and there is. Not so much of a tail into fourth quarter. Did I correctly summarize that or what would you do to modify add correct to what I just relayed?

首先，我們很感謝你們實際提供了定價指引，這很有幫助。John、Don，如果我沒聽錯的話，其中大部分會在第三季反映。它包含你們目前在市場上的措施，而且延伸到第四季的尾端效應不會太多。我這樣總結正確嗎？或者你會如何修正/補充我剛才轉述的內容？

And again, thanks for the pricing guide on that. We asked for that last quarter.

再次感謝你們提供那個定價指引。我們上季就問過了。

Yeah, so, George, thanks for the question. So it'll flow a little more evenly. The way John described those price increases is right. Depending on how it flows through the quarter for each of the regions, but we will in 3Q versus 4Q relative to price and mix, it is probably slightly more in Q4 than Q3.

是的，George，謝謝你的問題。所以它會更平均地反映出來。John 對那些漲價的描述是對的。取決於各區域在季度內的傳導節奏，但就價格與組合而言，第三季相較第四季，第四季可能會比第三季略多一些。

Would you be at a full run rate, recognizing it is not the full year, but would you be at a full run rate on what you have in the market as you are exiting fourth quarter? Would that be roughly what you would be contemplating there?

你們在退出第四季時，會達到完整的運行率嗎？我知道這不是全年，但你們在退出第四季時，市場上已落地的措施會達到完整運行率嗎？大致上是你們所設想的那樣嗎？

Yes. Yes.

是的。是的。

Yeah, we would. So North America definitely be at the run rate by fourth quarter and the fourth quarter, Latam as well, and Europe, that would be the expectation.

是的，我們會。所以北美在第四季肯定會達到運行率，拉丁美洲在第四季也會，歐洲也預期如此。

Okay.

好的。

My second question.

我的第二個問題。

We noticed the tax rate moved up a little bit in terms of your guide.

我們注意到你們指引中的稅率上調了一點。

That can be a lot of different things. It is probably mixed. But could you help us understand why the effective rate moved up a couple points? I will come back. Thanks.

這可能有很多不同原因。可能是組合因素。但你們能否協助我們理解，為什麼有效稅率上升了幾個百分點？我稍後再回來。謝謝。

Yeah, George, that is mainly due to Brazil valuation allowance that we took on a deferred tax asset in our Brazil export entity.

是的，George，這主要是因為我們在巴西出口實體的遞延所得稅資產上，提列了巴西的估值備抵（valuation allowance）。

And the reason we did that, it was related to the VAT rules are changing in the future and we merged two entities to really take advantage of $30 million of VAT tax credits we have in that entity. And it came at the expense of this valuation allowance for deferred tax assets. So 30 in VAT credits and it was approximately 9 million for this expense.

我們之所以這麼做，是因為未來增值稅（VAT）規則將會改變，我們合併了兩個實體，以便真正利用該實體中我們擁有的 3,000 萬美元 VAT 稅額抵減。而代價就是對遞延所得稅資產提列這項估值備抵。所以是 3,000 萬的 VAT 抵減，而這項費用大約是 900 萬。

okay, but so we would have stranded that $30 million of tax credit that we not made that move this year, yeah, when the law changed.

好的，但也就是說，如果我們今年沒有做這個動作，等法律改變時，我們就會讓那 3,000 萬美元的稅額抵減被擱置、無法使用，對嗎？

Okay, but it implies no change in terms of mix or for that matter your ongoing profitability based on what you were at last quarter?

好的，但這表示相較於上季，你們的組合沒有變化，或者就此而言，你們的持續獲利能力也沒有變化？

that is correct, George, yeah, okay.

沒錯，George，是的，好的。

Thank you.

謝謝。

Be right back.

我馬上回來。

Matthew McKellar, RBC Capital Markets.

Matthew McKellar，RBC 資本市場。

Hi, thanks. Just one more for me. I thought slide 12 was pretty interesting.

嗨，謝謝。我這邊再問最後一個。我覺得第 12 頁投影片很有意思。

As I think about the more kind of operational focus items there, operational excellence, cost leadership, and maybe to some degree customer centricity, how much of that, I guess, do you need to get right to get to your $300 million free cash flow target?

當我思考那邊較偏營運面的重點項目——營運卓越、成本領先，以及某種程度上的以客為中心——我想問的是，為了達成你們 3 億美元自由現金流的目標，這些方面你們需要做到多到位？

Thanks.

謝謝。

that is a good question because if we think about it in terms of the.

這是個好問題，因為如果我們從……的角度來看。

To achieve what we want to do, we want to be there across all these metrics. But in terms of the $300 million, probably the most important area for us is two. One is the cost leadership.

要達成我們想做的事，我們希望在所有這些指標上都表現到位。但就 3 億美元而言，對我們來說最重要的領域大概有兩個。第一個是成本領先。

We need to.

我們需要。

We need to increase the rate at which we can and the level that we can reduce costs given these high inflationary environments we have had across all regions and input costs.

在我們各區域與投入成本都經歷高通膨環境的情況下，我們需要提高降成本的速度，以及我們能夠降低成本的幅度。

And additionally, I think it is important with our customer centricity. I mean, it is very important that given our strategy where.

此外，我也認為以客為中心很重要。我的意思是，鑑於我們的策略……這點非常重要。

The flagship growth strategy is and where we want to run and, to our assets at the, at full capability, we need to make sure that our customers, we have intense customer loyalty as the market continues to decline. And so it is very important that the customers that we build.

旗艦成長策略所在之處，以及我們想要如何運行，並讓我們的資產在滿載能力下運作，我們必須確保在市場持續下滑之際，我們的客戶對我們有高度忠誠度。因此，我們所建立的客戶關係非常重要。

And serve our customers to a level that is well above their expectations.

並以遠高於他們期望的水準來服務我們的客戶。

Great. Thanks for the perspective. I will take it back.

很好。謝謝你的觀點。我就先到這裡。

George L. Staphos, Bank of America Securities.

George L. Staphos，美國銀行證券。

Hey, thanks.

嗨，謝謝。

Two quick ones. Number one, as I remember last quarter. The update relative to the earnings impact from the footprint alignment related to Eastover.

兩個很快的問題。第一個，我記得上季……關於 Eastover 產能版圖調整對獲利影響的更新。

There was effectively a $20 million add back for the view that you would be bringing in some tons, I remember mostly from Brazil, to help on your volume and it would be a bit more economical. Obviously, with tariffs changing again, maybe that situation has changed and I think you implied it or commented to it in one of the earlier.

當時等於有 2,000 萬美元的回加（add back），因為你們認為會引進一些噸數——我記得主要來自巴西——來支撐你們的出貨量，而且成本會更划算。顯然，關稅又再變動，或許情況已經改變；我想你們在前面某個問題裡也有暗示或提到。

Can you update us on where that stands? And then there was a comment in the slide about Eastover and the softwood line. And I was just curious, how are you using softwood in the mix out there?

你們能更新一下目前進展到哪裡嗎？另外，投影片上有提到 Eastover 和針葉木（softwood）產線。我只是好奇，你們在那邊的配方中是如何使用針葉木的？

And I will come back. Thanks.

我等下再回來。謝謝。

So, George, I will take that first question.

George，我先回答第一個問題。

So based on the tariff changes. We will not be able to bring in as much product from Brazil as we anticipated last quarter. So it looks like we will be back near that $85 million estimate that we provided back in February from our Q4 call. So when we said $20 million, it is essentially gone away from Brazil, rather.

基於關稅變動，我們將無法像上季預期那樣從巴西引進那麼多產品。因此看起來我們會回到接近 2 月在第四季電話會議中所提供的 8,500 萬美元估計值。所以當我們說 2,000 萬美元時，基本上是指來自巴西的那部分已經消失了。

Yeah, so back to the $85 million that we originally estimated.

對，所以回到我們原先估計的 8,500 萬美元。

Yeah, George, and to your question about the softwood hardwood, we only have two lines, in terms of our wood fiber that we supply to the mill, both hardwood and softwood. And generally, we put about 30% to 40% softwood in the products, and mostly that is in the converting grades, which need strength.

對，George，至於你問的針葉木、闊葉木，我們供應給紙廠的木纖維就兩條線：闊葉木與針葉木。一般而言，我們在產品中加入約 30% 到 40% 的針葉木，主要用在需要強度的加工（converting）等級。

Okay.

了解。

Yeah, I wouldn't I forgot about you have some grid use for converting.

對，我——我忘了你們在加工用途上有一些……

I will turn it over. I will come back. Thanks.

我把時間交回去。我等下再回來。謝謝。

Mike Roxland, Truist Securities.

Mike Roxland，Truist Securities。

Yeah, thanks again for the additional questions. Just two quick ones.

是的，謝謝再次讓我追加提問。兩個很快的問題。

First, can you talk about the impact on the U.S. Market from additional Canadian tariffs. I think the U.S. Imports around 7% of supply from Canada, and so I am just wondering what the new tariffs if and when they are implemented would mean for additional tightness in the U.S. Market.

第一，能否談談額外對加拿大加徵關稅對美國市場的影響？我想美國大約從加拿大進口約 7% 的供給，所以我想知道新的關稅若在實施時，對美國市場供給緊縮會有什麼額外影響。

Second question, just wanted to find out from you, your most profitable Brazil mill is not backward integrated. Is backward integrated and losing money. So can you remind me why it is important to be backward integrated into pulp in Brazil? And what I would also note is that there was an article recently that a domestic U.S. Mill has decided to rely on market pulp to produce paper and discontinue the use of internal pulp and that is actually improved their return profile. So any call you have on why the integration is necessary in Brazil.

第二個問題，我想確認一下：你們在巴西獲利最高的紙廠不是向上游整合（backward integrated）。而向上游整合的反而在虧損。所以你能提醒我，為什麼在巴西向上游整合到紙漿很重要？另外我也注意到，最近有篇文章提到一家美國本土紙廠決定改用市場紙漿來造紙，並停止使用自製紙漿，結果反而改善了其報酬結構。所以你們對於為何在巴西需要整合，有什麼看法？

Thank you.

謝謝。

Yeah, Mike, when you think about the process to produce paper on the integrated bill, not only are you fully integrated or you are using wood to produce the fiber, but you also use that process of reclaiming the chemicals, debarking it so you get bark, so you end up producing your energy, both electricity and steam from the process of.

是的，Mike，當你思考在整合型紙廠生產紙張的流程時，你不只是完全整合、用木材來生產纖維；你也會透過回收化學品、去皮（debarking）取得樹皮，最後在流程中產生能源——包括電力與蒸汽——來自於……的製程。

Cooking the wood. And when you add that together, collectively, it is typically a much lower cost way to produce the products that we make on coated free sheet. If you have a good source of wood, given a competitive situation where you actually may have high cost wood and relatively low cost energy potentially.

蒸煮木材。把這些加總起來，整體而言，對我們在塗佈無木紙（coated free sheet）所製造的產品來說，通常是一種成本更低的生產方式。如果你有良好的木材來源；在某些競爭情境下，若木材成本高、而能源成本相對低，可能……

That may make sense, but where you have low-cost wood, it is going to make more sense to be fully integrated. Yeah, Trace Lugos is a non-integrated mill, but it has a unique position being attached to a pulp mill. So unlike buying market pulp and then having to re-pulp that and put it back into your processes, we get them directly from the pulp mill, from the Suzano mill.

那樣也許說得通；但在你擁有低成本木材的地方，完全整合會更有意義。是的，Trace Lugos 是非整合型紙廠，但它有一個獨特位置：緊鄰一座紙漿廠。因此不同於購買市場紙漿後還得再打漿（re-pulp）並回到製程中，我們是直接從 Suzano 的紙漿廠取得。

We get that in a wet flurry, so no transportation costs, no rebulping yet. And also, we have an agreement with the Sazano Mills to provide steam and energy at very attractive rates. So, yeah, that makes that situation down.

我們以濕漿（wet slurry）的形式取得，因此沒有運輸成本，也不需要再打漿。此外，我們與 Suzano 紙廠有協議，以非常有吸引力的費率提供蒸汽與能源。所以，是的，這讓那個情況……

And it actually may not be the lowest or highest margin business we have, but it certainly is the highest cash.

而且它可能不是我們利潤率最高或最低的業務，但它確實是現金……

Generation business, because also you don't have the capital cost on the back end of the mill.

創造能力最強的業務，因為你也不需要承擔紙廠後段的資本成本。

I would add, John, and for your benefit, so Luisa Antonio is actually our lowest cost mill, even compared to Trace Lagos, and John's comment around on a cash basis is important because you don't have you got a lot less equipment than that Trace Lagos, but Luisa Antonio fully integrated, using. Fiber is the smallest cost.

我補充一下，John，讓你參考：Luisa Antonio 其實是我們成本最低的紙廠，甚至比 Trace Lagos 還低；而 John 提到以現金基礎來看很重要，因為你沒有——你擁有的設備比 Trace Lagos 少很多——但 Luisa Antonio 是完全整合、使用……纖維，因此成本最低。

Thank you.

謝謝。

You asked about the impact on the Canadian tariff, and that was the tariff that was applied was on a very narrow product line of unclear if we see, and as you mentioned, it is.

你問到加拿大關稅的影響；目前施加的關稅是針對非常狹窄的產品線，而且我們也不清楚是否會看到……如你所提到，它是……

Imported or exported or comes into the U.S. At a very small volume.

進口或出口，或進入美國的量都非常小。

So the impact of that on the North American market is medical from the Terra perspective.

因此，從關稅角度來看，對北美市場的影響非常有限。

Thank you.

謝謝。

George L. Staphos, Bank of America Securities.

George L. Staphos，美國銀行證券。

Hey guys, left you from me, one on Europe and one on, the bridge into third quarter. So for Europe guys, can you, I think you are answering it to Matt and I might have missed it, but have you quantified what benefit you are getting from improved fiber in Nymolla or, with a reasonable time period, like in the next quarter or two annualized.

嗨，各位，我這邊還有兩個：一個關於歐洲，另一個關於第三季的銜接（bridge）。先談歐洲，各位能否——我想你們在回答 Matt 時有提到，但我可能漏聽了——你們是否量化過在 Nymolla 纖維改善所帶來的效益？例如在接下來一兩季、以年化來看大概是多少？

What kind of benefit on fiber you expect to get in Nymolla ?

您預期在 Nymolla 的纖維方面能獲得什麼樣的效益？

Relatedly, what are you seeing in the pulp markets in Europe right now and what it is doing to the cost curve, especially for the non-integrated guys? So that is question one broadly. Question two, if we think about.

相關地，您目前在歐洲的紙漿市場看到了什麼情況？它對成本曲線有何影響，特別是對那些未整合（non-integrated）的業者？所以這是第一個較廣泛的問題。第二個問題，如果我們來思考。

What you reported for 2Q, you did $60 million.

就您在第二季（2Q）所報告的結果，您做到了 6,000 萬美元。

Again, thank you for the pricing guide. let us say you get half of that 75 to 85. Let us call it $40 million of the midpoint of 80, right? You have maintenance, which comes down 40, I believe, 2Q to 3Q. Again, correct me if I am wrong. So that is an 80.

再次感謝您提供的定價指引。假設您拿到其中一半，也就是 75 到 85 的一半。我們就以 80 的中位數來算，稱之為 4,000 萬美元，對吧？您有維護（maintenance），我相信從第二季到第三季會下降 4,000 萬。如果我說錯請糾正我。所以那就是 8,000 萬。

Should we assume that. The Brazilian tons that are not coming in, that negative 20 offsets whatever volume and ops benefit you would get. So basically, we are looking at an $80 million benefit 3Q versus 2Q. What other good guys might help you add to that total?

我們是否應該假設。巴西那邊沒有進來的噸數，那個負 2,000 萬會抵消您在出貨量與營運（ops）方面可能取得的任何效益。所以基本上，我們看到的是第三季相較第二季有 8,000 萬美元的效益。還有哪些其他正面因素可能幫助您把總額再往上加？

Thank you, guys, and good luck in the quarter.

謝謝各位，祝本季順利。

Okay. it is a lot packed in there, George.

好的。George，你這裡面塞了很多問題。

Maybe Kate, yeah, I appreciate that. So on Europe, let us talk about fiber. So relative to pulp, what we are seeing with pulp are pulp prices coming up, but probably to a stable point.And relative to the non-integrated players, today there are fewer non-integrated players in Europe than there were. Some years ago, and I think the what you traditionally saw where when pulp went up, it helped to put paper prices up.

或許 Kate，對，我很感謝。那麼談到歐洲，我們來談纖維。相對於紙漿，我們看到的是紙漿價格在上升，但可能會到一個穩定點。至於未整合的業者，相較於幾年前，現在歐洲的未整合業者比以前少了。而我認為你過去傳統上看到的是，當紙漿上漲時，它有助於推動紙張價格上漲。

We are not seeing that as much anymore. Operating rates are still low. Pulp has come up somewhat. And we have gotten some traction on price, but I think there's less relationship there. And, pulp is up.

我們現在不太看到這種情況了。開工率仍然偏低。紙漿價格確實有些上來。我們在價格上也取得了一些進展，但我認為兩者之間的連動性變小了。而且，紙漿是上漲的。

$112 a ton, euros a ton, sorry, say July, year-to-date, and prices are not up that much. Relatedly, Numula and then the Bridge of 3-2.

每噸上漲了 112（歐元/噸，抱歉），以 7 月、年初至今來看，但價格並沒有上漲那麼多。相關地，Numula，然後是 3-2 的橋接（Bridge）。

Thank you. Yeah, I think, George, we are not going to but what I said is that wood cost has come down about 20%. But we are going to see the impact of that. Like we are starting to just start to see the impact of that in the third quarter. And that will carry through through the rest of the year.

謝謝。是的，我想 George，我們不會——但我說過木材成本已經下降了大約 20%。但我們將會看到其影響。例如，我們在第三季才剛開始看到這個影響。而且這會延續到今年剩餘時間。

And the bridge.

以及橋接。

Yeah, back to your, you are looking for more specifics on each of these.

是的，回到你的問題，你是在尋找每一項更具體的細節。

The buckets, if you will, for second-half.

如果你願意這麼說的話，下半年各項「桶子」（buckets）。

Yeah, and I gave you some rounds of numbers to work with Don.

是的，我給了你幾輪數字讓你可以運算，Don。

Yeah, and when I look at numbers at a very quick level, I mean, directionally you are, I would say you are in the ballpark is where we would think. Of course, there's some uncertainty around the input cost with the award, but generally that is right. The other thing, too, is.

是的，當我很快速地看這些數字時，我的意思是，就方向性而言，我會說你大致在我們預期的範圍內。當然，投入成本在裁決（award）方面仍有一些不確定性，但整體而言是對的。另外一點是。

And maybe we need to talk about this in the volume and stuff. So we shipped the volume. When the IEPA tariff went away, we shipped we made a change and moved from instead of importing in from our European operations, we imported in from Brazil. we have had to stop that due to the recent.

也許我們需要在出貨量等方面談一下。所以我們已經把量出掉了。當 IEPA 關稅取消後，我們做了調整：不再從我們的歐洲營運進口，而是改從巴西進口。我們因為近期的。

Tariff implications, but there was volume that was shipped into Brazil and not sold, right, will be sold in the second-half. I am sorry, to the U.S. And roughly that means that, the earnings for Brazil were understated, and we are going to see the impact of that in the second-half and the mix. And it is roughly about $9 to $10 million.

關稅影響而不得不停止，但先前有一些量已經運到巴西但尚未售出，對吧，將會在下半年售出。抱歉，是運到美國。大致而言，這表示巴西的獲利被低估了，而我們將在下半年以及產品組合（mix）中看到其影響。大約是 900 萬到 1,000 萬美元。

Okay.

好的。

But that is not all going to hit the third quarter, as we sell it will be third and fourth quarter.

但這不會全部在第三季反映；隨著我們銷售，會落在第三季和第四季。

Okay.

好的。

Thank you very much.

非常感謝。

We have reached the end of the Q&A session. I will now turn the call back over to John Sims for closing remarks.

問答環節到此結束。我現在把電話交回給 John Sims 作結語。

John, please go ahead.

John，請繼續。

Again, thank you for being on the call and thank you for the questions. Now, we said, and I said that 25 and 26 would be low points in our free cash flow generation, and I would say that the first and second quarter will play the nadir of that. But this is a transition year, 2026, and it is going to be a tale of two halves, which we have talked about during this call.

再次感謝各位參與電話會議，也謝謝大家的提問。我們之前說過，我也說過，2025 年和 2026 年將是我們自由現金流產生的低點，而我會說第一季和第二季將會是其中的谷底。但 2026 年是一個轉型年，會呈現上下半年兩段式的走勢，我們在本次電話會議中也談到了。

This year, we are executing our most significant investments at our east over mill that will drive a lot of value in the years to come. We have also launched our lane transformation, focused on exceeding our customers' expectations and driving improvement and accelerating that across all our operations.

今年，我們正在東部 Over Mill 執行我們最重大的投資，這將在未來幾年帶來大量價值。我們也啟動了精實（lean）轉型，聚焦於超越客戶期望、推動改善，並在所有營運據點加速推進。

We are focused on the long-term value creation and will generate strong, sustainable results by diligently executing our flagship growth strategy, adhering to the disciplined capital allocation principles.

我們專注於長期價值創造，並將透過勤勉執行我們的旗艦成長策略、遵循嚴謹的資本配置原則，來產生強勁且可持續的成果。

Becoming more customer-centric and institutionalizing lean management principles. So we have a lot of confidence that we believe that as industry concerns, particularly in Europe and on the older markets, our capital spending normalizes and the benefits from our investments begin to materialize with potential to generate annually greater than $300 million in cash flow, greater than 15% returns on invested capital. So thank you for being on the call.

變得更以客戶為中心，並將精實管理原則制度化。因此，我們非常有信心：隨著產業疑慮（特別是在歐洲以及較成熟的市場）緩解、我們的資本支出回歸常態，以及投資效益開始顯現，我們有潛力每年產生超過 3 億美元的現金流，投入資本報酬率（ROIC）超過 15%。謝謝各位參與本次電話會議。

Thanks, everybody. Have a great day and a great weekend. Bye-bye.

謝謝大家。祝各位有美好的一天與愉快的週末。再見。

Once again, we would like to thank you for participating in Sylvamo second quarter 2026 earnings call. You may now disconnect.

再次感謝您參與 Sylvamo 2026 年第二季財報電話會議。您現在可以掛線。