8-K

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): February 27, 2020

_____________________

VERSO CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-34056	75-3217389
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

8540 Gander Creek Drive

Miamisburg, Ohio 45342

(Address, including zip code, of principal executive offices)

(877) 855-7243

(Registrants’ 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:

☐ 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	VRS	New York Stock Exchange

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 2.02        Results of Operations and Financial Condition.

On February 27, 2020, Verso Corporation (“Verso”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2019.  A copy of the press release is included as Exhibit 99.1 to this report.  The press release, including the information contained therein, is furnished pursuant to Item 2.02, is not to be considered “filed” under the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any of Verso’s previous or future filings under the Securities Act of 1933, as amended.

Item 7.01.        Regulation FD Disclosure.

Verso has prepared presentation materials (the “Investor Presentation”) that management intends to use with its earnings conference call for its fourth quarter and year ended December 31, 2019 financial results, to be held at 9 a.m. Eastern Daylight Time on February 27, 2020. The Investor Presentation is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.

Item 9.01        Financial Statements and Exhibits.

(d)        Exhibits

Exhibit Number	Description of Exhibit
99.1	Press release issued by Verso on February 27, 2020.
99.2	Investor Presentation dated February 27, 2020.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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.

	VERSO CORPORATION
Date: February 27, 2020	By:	/s/ Allen J. Campbell
		Allen J. Campbell
		Senior Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

Verso Corporation Announces Board Authorization of Stock Repurchase and Reports Fourth Quarter and Full Year 2019 Financial Results

MIAMISBURG, Ohio, Feb. 27, 2020 /PRNewswire/ -- Verso Corporation (NYSE: VRS) today announced that the Board of Directors has authorized up to $250 million to be used to repurchase outstanding shares and reported financial results for the fourth quarter and full year of 2019.

Fourth Quarter 2019 Highlights:

• Net sales of $587 million, down $108 million compared to fourth quarter 2018
• Net income of $142 million or $4.04 per diluted share, including $117 million tax benefit, driven by a release of the income tax valuation allowance, and a $13 million pension settlement gain, compared to net income of $86 million or $2.44 per diluted share in fourth quarter 2018
• Adjusted EBITDA of $74 million, versus $96 million in fourth quarter 2018

Overview
"Verso reported Adjusted EBITDA (Non-GAAP) of $74 million (12.6% of sales), despite continued demand decline in the graphic paper market, increased pressure from imports and the closure of our Luke Mill in the second quarter of 2019. We reduced inventory by $21 million in the fourth quarter as we effectively balanced our supply with demand and ended the year debt free," said Verso Corporation Chief Executive Officer Adam St. John. "With the completion of the Pixelle transaction and the board's authorization to repurchase outstanding shares of Verso stock, we are focused on managing a streamlined company with strong operating cash flow to deliver value to shareholders."

Results of Operations – Comparison of Three Months Ended December 31, 2019 to Three Months Ended December 31, 2018

	Three Months Ended December 31,		Three Month
(Dollars in millions)	2018	2019	$ Change
Net sales	$       695	$       587	$        (108)
Costs and expenses:
Cost of products sold (exclusive of depreciation and amortization)	579	513	(66)
Depreciation and amortization	28	26	(2)
Selling, general and administrative expenses	24	28	4
Restructuring charges	(1)	8	9
Other operating (income) expense	2	2	-
Operating income (loss)	63	10	(53)
Interest expense	1	-	(1)
Other (income) expense	(24)	(15)	9
Income (loss) before income taxes	86	25	(61)
Income tax expense (benefit)	-	(117)	(117)
Net income (loss)	$         86	$       142	$           56

Comments to Results of Operations - Comparison of Three Months Ended December 31, 2019 to Three Months Ended December 31, 2018

Net sales
Net sales in the fourth quarter of 2019 decreased by $108 million or 16% compared to the prior year, with price/mix and sales volume both having a negative impact on year over year results. Total company sales volume was down from 742 thousand tons during the fourth quarter of 2018, to 657 thousand tons during the fourth quarter of 2019, driven by the closure of our Luke Mill, continued decline of graphic paper demand and increased pressure from imports.

Operating income
Operating income was $10 million in the fourth quarter of 2019, a decrease of $53 million compared to operating income of $63 million in the fourth quarter of 2018.

Operating results for the fourth quarter of 2019 were positively impacted by:

• Lower freight costs of $3 million
• Lower input costs of $16 million driven primarily by improved costs of chemicals, energy and purchased pulp, partially offset by higher wood costs
• Lower depreciation expense of $2 million

Operating results for the fourth quarter of 2019 were negatively impacted by:

• Unfavorable price/mix of $32 million
• Lower margin of $13 million resulting from a decrease in sales volume driven by the closure of our Luke Mill and a decline in graphic and specialty paper sales, partially offset by an increase in packaging paper sales
• Higher Selling, general and administrative costs of $4 million driven primarily by costs related to the sale of our Androscoggin and Stevens Point Mills and related assets (the "Pixelle Sale") and proxy solicitation, partially offset by our continued cost cutting initiatives
• Increased operating expense of $16 million driven primarily by market downtime, lower production rates at our Wisconsin Rapids and Androscoggin Mills and environmental costs associated with remediation efforts at our Luke Mill

Other impacts to operating results included:

• Restructuring charges for the fourth quarter of 2019 increased $9 million compared to the fourth quarter of 2018, primarily as a result of the closure of our Luke Mill

Other income
Other income in the fourth quarter of 2019 and fourth quarter of 2018 included $14 million and $3 million, respectively, associated with the non-operating components of net periodic pension income, including $13 million of pension settlement gain in the fourth quarter of 2019. Additionally, the fourth quarter of 2018 included $22 million of income related to the countervailing duty settlement agreement.

Income tax benefit
Income tax benefit was $117 million for the fourth quarter of 2019, primarily attributable to a release of the income tax valuation allowances on all federal deferred tax assets and certain state tax credits.

Results of Operations – Comparison of 12 Months Ended December 31, 2019 to 12 Months Ended December 31, 2018

	Twelve Months Ended December 31,		Twelve Month
(Dollars in millions)	2018	2019	$ Change
Net sales	$     2,682	$     2,444	$        (238)
Costs and expenses:
Cost of products sold (exclusive of depreciation and amortization)	2,321	2,138	(183)
Depreciation and amortization	111	183	72
Selling, general and administrative expenses	102	104	2
Restructuring charges	1	52	51
Other operating (income) expense	(5)	4	9
Operating income (loss)	152	(37)	(189)
Interest expense	33	2	(31)
Other (income) expense	(52)	(18)	34
Income (loss) before income taxes	171	(21)	(192)
Income tax expense (benefit)	-	(117)	(117)
Net income (loss)	$       171	$         96	$          (75)

Comments to Results of Operations - Comparison of 12 Months Ended December 31, 2019 to 12 Months Ended December 31, 2018

Net sales
Net sales for the twelve months ended December 31, 2019 decreased by $238 million or 9% compared to the prior year due to decreased sales volume, partially offset by improved price/mix. Total company sales volume was down from 2,927 thousand tons during the twelve months ended December 31, 2018, to 2,647 thousand tons during 2019, driven by the closure of our Luke Mill, continued decline of graphic paper demand and increased pressure from imports.

Operating income (loss)
Operating income (loss) was a loss of $37 million for the twelve months ended December 31, 2019, a decrease of $189 million when compared to operating income of $152 million in the prior year.

Operating results for the twelve months ended December 31, 2019 were positively impacted by:

• Improved price/mix of $20 million
• Lower freight costs of $6 million

Operating results for the twelve months ended December 31, 2019 were negatively impacted by:

• Lower margin of $43 million resulting from a decrease in sales volume driven by the closure of our Luke Mill and a decline in graphic paper and market pulp sales, partially offset by an increase in specialty and packaging paper sales
• Higher input costs of $2 million driven primarily by higher costs of wood fiber, partially offset by improved energy costs
• Higher Selling, general and administrative costs of $2 million driven by severance costs and equity compensation expense in connection with the former Chief Executive Officer pursuant to his employment agreement and costs related to the Pixelle Sale and proxy solicitation, partially offset by continued cost cutting initiatives
• Higher operating expenses of $31 million driven primarily by market downtime, union ratification expense for signing bonuses and the settlement of various work arrangement issues, a power outage and subsequent acid sewer failure at our Wisconsin Rapids Mill, higher unplanned maintenance costs resulting from reliability events at our Wisconsin Rapids and Escanaba Mills and environmental costs associated with remediation efforts at our Luke Mill
• Increased planned major maintenance costs of $5 million, primarily driven by planned maintenance performed at our Escanaba Mill during the twelve months ended December 31, 2019 that was not performed during the prior year, partially offset by planned maintenance performed at our Luke Mill during the twelve months ended December 31, 2018, which was not performed during 2019
• Higher depreciation expense of $72 million driven by $76 million of accelerated depreciation in connection with the closure of our Luke Mill

Other impacts to operating results included:

• Restructuring charges for the twelve months ended December 31, 2019 increased $51 million compared to the prior year, primarily as a result of the closure of our Luke Mill
• Other operating income for the twelve months ended December 31, 2019 decreased $9 million compared to the prior year as a result of the $9 million gain on the sale of our Wickliffe Mill in 2018

Interest expense
Interest expense for the twelve months ended December 31, 2019 decreased $31 million or 94% compared to the prior year. Interest expense for the twelve months ended December 31, 2018 included $15 million in non-cash accelerated amortization of debt issuance cost and discount associated with the voluntary principal prepayments and excess cash flow payments on our prior term loan facility. The remaining decrease in interest expense resulted from the reduction in amounts outstanding under the asset-based revolving credit facility and the repayment and termination of our prior term loan facility in September 2018.

Other income
Other income for the twelve months ended December 31, 2019 and December 31, 2018 included $18 million and $12 million, respectively, associated with the non-operating components of net periodic pension income, including $13 million of pension settlement gain in the twelve months ended December 31, 2019. Additionally, the twelve months ended December 31, 2018 included $42 million of income related to the countervailing duty settlement agreement.

Income tax benefit
Income tax benefit was $117 million for the twelve months ended December 31, 2019, primarily attributable to a release of the income tax valuation allowances on all federal deferred tax assets and certain state tax credits.

Guidance
The Company is providing the following guidance for 2020:

• Capital expenditures of $55-60 million
• Cash pension contribution of $54 million
• Tax payments of $3-6 million

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
EBITDA consists of earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA reflects adjustments to EBITDA to eliminate the impact of certain items that we do not consider to be indicative of our ongoing performance. We use EBITDA and Adjusted EBITDA as a way of evaluating our performance relative to that of our peers and to assess compliance with our credit facilities. We believe that EBITDA and Adjusted EBITDA are non-GAAP operating performance measures commonly used in our industry that provide investors and analysts with measures of ongoing operating results, unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies.

We believe that the supplemental adjustments applied in calculating Adjusted EBITDA are reasonable and appropriate to provide additional information to investors.

Because EBITDA and Adjusted EBITDA are not measurements determined in accordance with Generally Accepted Accounting Principles (GAAP) and are susceptible to varying calculations, EBITDA and Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies. You should consider our EBITDA and Adjusted EBITDA in addition to, and not as a substitute for, or superior to, our operating or net income (loss), which are determined in accordance with GAAP.

The following table reconciles Net income (loss) to EBITDA and Adjusted EBITDA for the periods presented:

		Three Months Ended December 31,		Twelve Months Ended December 31,
(Dollars in millions)		2018	2019	2018	2019
Net income (loss)		$        86	$       142	$       171	$        96
Income tax expense (benefit)		-	(117)	-	(117)
Interest expense		1	-	33	2
Depreciation and amortization		28	26	111	183
EBITDA		$       115	$        51	$       315	$       164
Adjustments to EBITDA:
	Restructuring charges (1)	(1)	8	1	52
	Luke Mill post-closure costs (2)	-	5	-	9
	Non-cash equity award compensation (3)	2	2	8	12
	Androscoggin PM No. 3 startup costs (4)	-	-	10	-
	Countervailing duty settlement (5)	(22)	-	(42)	-
	(Gain) loss on sale or disposal of assets (6)	-	2	(8)	2
	Post-reorganization costs (7)	1	-	4	-
	Strategic initiatives costs (8)	-	5	5	6
	Shareholders proxy solicitation costs(9)	-	1	-	1
	Other severance costs (10)	-	-	-	4
	Other items, net (11)	1	-	3	1
Adjusted EBITDA (12)		$        96	$        74	$       296	$       251

(1)	For 2018, charges are primarily associated with the closure of the Wickliffe Mill. For 2019, charges are primarily associated with the closure of the Luke Mill.
(2)	Costs recorded after production ceased at the Luke Mill that are not associated with product sales or restructuring activities.
(3)	Amortization of non-cash incentive compensation.
(4)	Costs incurred in connection with the upgrade of previously shuttered No. 3 paper machine and pulp line at the Androscoggin Mill.
(5)	Countervailing duty settlement gains pursuant to the settlement agreement.
(6)	Realized (gain) loss on the sale or disposal of assets, including a $9 million gain on the sale of the Wickliffe Mill in September 2018.
(7)	Fees associated with our prior Chapter 11 cases.
(8)	Professional fees and other charges associated with strategic alternatives initiative, including certain costs incurred in 2019 related to the Pixelle Sale.
(9)	Costs incurred in connection with shareholders proxy solicitation contest.
(10)	Severance and related benefit costs not associated with restructuring activities.
(11)	Other miscellaneous adjustments.
(12)	Adjusted EBITDA for the three months and twelve months ended December 31, 2019, includes $13 million of income related to a pension settlement gain.

About Verso
Verso Corporation is the turn-to company for those looking to successfully navigate the complexities of paper sourcing and performance. A leading North American producer of graphic and specialty papers, packaging papers and pulp, Verso provides insightful solutions that help drive improved customer efficiency, productivity, brand awareness and business results. Verso's long-standing reputation for quality and reliability is directly tied to our vision to be a company with passion that is respected and trusted by all. Verso's passion is rooted in ethical business practices that demand safe workplaces for our employees and sustainable wood sourcing for our products. This passion, combined with our flexible manufacturing capabilities and an unmatched commitment to product performance, delivery and service, make Verso a preferred choice among commercial printers, paper merchants and brokers, converters, publishers and other end users. For more information, visit us online at versoco.com.

Forward-Looking Statements
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management's current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. Verso's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including: the long-term structural decline and general softening of demand facing the paper industry; adverse developments in general business and economic conditions; developments in alternative media, which are expected to adversely affect the demand for some of Verso's key products, and the effectiveness of Verso's responses to these developments; intense competition in the paper manufacturing industry; Verso's ability to compete with respect to certain specialty paper products for a period of two years after the closing of the Pixelle Sale; Verso's business being less diversified following the sale of two mills after the closing of the Pixelle Sale; Verso's dependence on a small number of customers for a significant portion of its business; Verso's limited ability to control the pricing of its products or pass through increases in its costs to its customers; changes in the costs of raw materials and purchased energy; negative publicity, even if unjustified; any failure to comply with environmental or other laws or regulations, even if inadvertent; legal proceedings or disputes; any labor disputes; and the potential risks and uncertainties described under the caption "Risk Factors" in Verso's Form 10-K for the fiscal year ended December 31, 2018, Verso's Quarterly Report on Form 10-Q for the nine months ended September 30, 2019, and from time to time in Verso's other filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

Conference Call
Verso will host a conference call and webcast for analysts and investors on Thursday, February 27, 2020 at 9 a.m. (EST) to discuss fourth quarter and full year 2019 financial results.

Analysts and investors may access the live conference call only by dialing 888-317-6003 (U.S. toll-free), 866-284-3684 (Canada toll-free) or 412-317-6061 (international) and referencing elite entry number 3893440 and Verso Corporation. To register, please dial in 10 minutes before the conference call begins. The news release and fourth quarter and full year 2019 results will be available on Verso's website at http://investor.versoco.com by navigating to the Financial Information page.

Analysts and investors may also access the live conference call and webcast by clicking on the event link https://www.webcaster4.com/Webcast/Page/1524/33329 or by visiting Verso's website at http://investor.versoco.com and navigating to the Events page. Please go to this link at least one hour before the call and follow the instructions to register, download and install any necessary audio/video software.

A telephonic replay of the call can be accessed at 877-344-7529 (U.S. toll-free), 855-669-9658 (Canada toll-free) or 412-317-0088 (international), access code 10139709. The replay will be available starting at 11 a.m. (EST) Thursday, February 27, 2020, and will remain available until March 27, 2020. An archive of the conference call and webcast will be available at http://investor.versoco.com starting at 11 a.m. (EST) Thursday, February 27, 2020, and will remain available for 120 days.

CONTACT: Investor contact: investor.relations@versoco.com, 937-528-3220. Media contact: Shawn Hall, Director, Communications, 937-528-3700, shawn.hall@versoco.com.

EX-99.2

Earnings Conference Call and Webcast – February 27, 2020 Verso Fourth Quarter and Full Year 2019 Results Exhibit 99.2

Forward Looking Statements & Non-GAAP Financial Information In this presentation, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "intend," “potential,” “will,” “may” and other similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management's current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. Verso’s actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including, without limitation, the long-term structural decline and general softening of demand facing the paper industry; adverse developments in general business and economic conditions; developments in alternative media, which are expected to adversely affect the demand for some of Verso's key products, and the effectiveness of Verso's responses to these developments; intense competition in the paper manufacturing industry; Verso's ability to compete with respect to certain specialty paper products for a period of two years after the closing of the sale of Verso's Androscoggin and Stevens Point mills and related assets (the "Pixelle Sale"); Verso's business being less diversified following the sale of two mills after the closing of the Pixelle Sale; Verso's dependence on a small number of customers for a significant portion of its business; Verso's limited ability to control the pricing of its products or pass through increases in its costs to its customers; changes in the costs of raw materials and purchased energy; negative publicity, even if unjustified; any failure to comply with environmental or other laws or regulations, even if inadvertent; legal proceedings or disputes; any labor disputes, and those risks and uncertainties listed under the caption “Risk Factors” in Verso’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Verso’s Quarterly Report on Form 10-Q for the nine months ended September 30, 2019, and from time to time in Verso’s other filings with the Securities and Exchange Commission (the “SEC”). Verso assumes no obligation to update any forward-looking statement made in this presentation to reflect subsequent events or circumstances or actual outcomes. Non-GAAP Financial Information This presentation contains certain non-GAAP financial information relating to Verso, including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. Definitions and reconciliations of these non-GAAP measures are included in this presentation. Because EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are not measurements determined in accordance with GAAP and are susceptible to varying calculations, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as presented may not be comparable to similarly titled measures of other companies. You should consider our EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not as a substitute for or superior to, our operating or net income, which are determined in accordance with GAAP. See the Appendix in this presentation for additional information on EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.

ADAM ST. JOHN|CEO BUSINESS UPDATE

Q4 and Full Year 2019 Highlights 1 See Appendix for definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP Measures. Ended the year with no debt and $42M in cash. Strong focus on safety performance ending the year with a total incident rate of 1.23 and lost workday incident rate of 0.39. Completed the sale of Androscoggin and Stevens Point mills to Pixelle Specialty Solutions on February 10, 2020. Maintained industry leading low SG&A to sales ratio. Continued challenging headwinds. Dollars in MillionsQ4-19FY-19 Sales$587$2,444 Adj. EBITDA1$ 74 $ 251 Adj. EBITDA Margin1 12.6% 10.3% Full year 2019 Adjusted EBITDA1 of $251M and Adjusted EBITDA Margin1 of 10.3%. Price/mix and cost reduction initiatives partially offset the impact of demand decline, Luke Mill closure and reliability events. Includes a $13M pension settlement gain.

Androscoggin and Stevens Point Mills Verso Remaining Mills Mills located in Quinnesec and Escanaba, Michigan; Wisconsin Rapids, Wisconsin; and Duluth, Minnesota. Streamlined company with strong operating cash flow. Invest capital to maintain efficient and cost effective operations. Manageable pension position with no long- term debt. 1 1,3 1,2 ($M) Profile Post Androscoggin and Stevens Point Mill Sale 12019 Full Year. | 2See Appendix for Verso Post Mill Sale 2019 FY Adjusted EBITDA Reconciliation. | 3As of December 31, 2019. 2019 Revenue Post Mill Sale1 3% 1

Use of Proceeds Board of Directors has authorized the repurchase of up to $250 million of Verso’s shares. A plan to declare a $0.10 quarterly dividend payable to holders of Verso stock in Q2 2020.

ALLEN CAMPBELL | CFO FINANCIAL UPDATE

Key Metrics Adj. EBITDA Margin1 of 12.6% for the quarter despite challenging market environment. Q4 2019 net income includes release of $115M of income tax valuation allowances and pension settlement gain of $13M. Pulp price significantly below Q4 2018 with shipments down by 25% as a result of mix changes on Androscoggin Mill’s No. 3 paper machine. Year end inventory ended down year over year and down $78M from Q1 2019. SG&A maintained at industry low levels as a percentage of revenue. 1 See Appendix for definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP Measures. Q4 18 Q4 19 Q4 18 Q4 19 Δ Δ % Income Statement Shipments (000 tons) Net Sales $M $695 $587 - Paper 671 604 -67 -9.9850968703427717E-2 Operating Income $M $63 $10 - Pulp 71 53 -18 -0.25352112676056338 Net Income $M $86 $142 Total 742 657 -85 -0.11455525606469003 Adjusted EBITDA1 $M $96 $74 NSP ($/ton) Adj. EBITDA Margin1 % 0.13800000000000001 0.126 - Paper $968 $932 $-36 -3.71900826446281E-2 EPS - Diluted $/share $2.44 $4.04 - Pulp $627 $458 $-,169 -0.26953748006379585 Inventory ($M) $398 $395 $-3 -7.537688442211055E-3

Q4 2018 to Q4 2019 Adjusted EBITDA1 Bridge ($M) Operations unfavorable due to lower production at our Androscoggin and Wisconsin Rapids mills. Inflation on direct materials favorable due to decreased chemical, energy and purchased pulp costs, partially offset by increased wood costs. Favorable SG&A driven by continued cost-cutting initiatives. Pension settlement gain related to lump sum buyout program. 1 See Appendix for definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP Measures.

2018 and 2019 Adjusted EBITDA Reconciliation

2018 to 2019 Adjusted EBITDA1 Bridge ($M) Price/mix favorable with volume down due to weak demand and closure of the Luke Mill. Downtime taken to mitigate inventory build. Significant reliability events primarily at the Escanaba and Wisconsin Rapids mills. Major maintenance unfavorable due to planned outages across our system. Slight inflation due to higher wood costs. Other COGS increase driven by union ratification payments and increased warehouse costs, partially offset by natural gas settlement payment and improved freight costs. Pension settlement gain related to lump sum buyout program. 1 See Appendix for definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP Measures.

Liquidity, Net Debt and Cash Flow Ended the year with cash of $42M and available liquidity of $318M. Cash flow from operations continues to satisfy all operating requirements. Capital Expenditures in 2019 included: $14M in strategic projects. Increased capital maintenance of $35M at the Wisconsin Rapids, Escanaba and Stevens Point mills. Net Debt1 ($M) Liquidity2 $216 $309 $318 Strong liquidity with cash from operations funding requirements. $204 Net Debt $26 Cash $42 Cash Cash Flow ($M) 2017 2018 2019 1 Net debt = ABL borrowings less cash. | 2 $350M ABL facility limited by borrowing base and inclusive of cash. | 3 Includes $20M for Countervailing Duties and $16M from the sale of Wickliffe Mill. | 4 2019 Includes Luke Mill closure and post-closure cost. | 5 Includes changes of restricted cash. 3 4 5 VERSO CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Six Months Nine Months Three Months Twelve Months Twelve Months Twelve Months Ended Ended Ended Ended Ended Ended Ended (Dollars in millions) September 30, 2018 June 30, 2019 September 30, 2019 September 30, 2018 2017 2018 2019 Cash Flows From Operating Activities: Net income (loss) 86 -76 -46 30 -30 171 75 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 28 132 157 25 115 111 183 Noncash restructuring charges 0 18 20 2 0 0 20 Noncash postretirement Gain -4 0 0 Net periodic pension cost (income) -2 0 -1 -1 6 -7 -1 Pension plan contributions -21 -16 -34 -18 -32 -43 -42 Amortization of debt issuance cost and discount 12 1 1 0 9 19 1 Extinguishment of NMTC obligation -7 0 0 Equity award expense 2 8 10 2 1 8 12 (Gain) loss on sale or disposal of assets -8 1 0 -1 3 -8 2 Deferred Taxes -8 0 -94 Prepayment premium on Term Loan Facility 1 0 0 0 1 1 0 Changes in assets and liabilities: Accounts receivable, net -37 8 -5 -13 -13 11 44 Inventories -4 -69 -27 42 60 -12 -7 Prepaid expenses and other assets 2 2 4 2 6 4 5 Accounts payable -2 -14 -14 0 67 40 -34 Accrued and other liabilities 14 -19 -26 -7 -21 -12 -39 Net cash provided by (used in) operating activities 71 -24 39 63 153 283 125 Cash Flows From Investing Activities: Proceeds from sale of assets 17 0 1 1 0 17 1 Capital expenditures -23 -39 -76 -37 -40 -73 -,105 Grant proceeds from Maine Technology Institute 1 0 0 0 0 4 0 Net cash provided by (used in) investing activities 5 39 75 36 -40 -52 -,104 Cash Flows From Financing Activities: Borrowings on ABL Facility 151 278 389 111 186 442 428 Payments on ABL Facility -,122 -,231 -,368 -,137 -,233 -,507 -,428 Payments on Term Loan Facility -95 0 0 0 -65 -,146 0 Prepayment premium on Term Loan Facility -1 0 0 0 -1 -1 0 Principal payment on finance lease obligations 0 0 -1 -1 0 0 -1 Acquisition of treasury stock 0 -3 -3 0 0 0 -3 Debt issuance costs 0 -1 -1 0 0 0 -1 Net cash provided by (used in) financing activities -67 43 16 -27 -,113 -,212 -5 Change in Cash and cash equivalents and restricted cash -1 -19 -20 -1 0 19 16 Cash and cash equivalents and restricted cash at beginning of period 0 28 28 0 9 9 28 Cash and cash equivalents and restricted cash at end of period -1 9 8 -1 9 28 44 Supplementary cash flow disclosures: Total interest paid 30 16 2 Total income taxes paid (received) Noncash investing and financing activities: Right-of-use assets recorded upon adoption of ASC 842 24 24 0 0 24 Right-of-use assets obtained in exchange for new finance lease liabilities 7 7 0 0 8 Right-of-use assets obtained in exchange for new capitalized operating lease liabilities 2 2 0 0 2 Cash Flow ($M) FY 2017 FY 2018 FY 2019 Cash Generation Cash From Operations $113 $81 $223 $304 $205 CVD and Asset Sale 0 59 1 Total Cash Generation $113 $81 $223 $363 $206 Cash Uses Pension Funding $-21 $-18 $-32 $-43 $-42 Capital Expenditures -23 -37 -40 -73 -,105 Interest Payments -4 0 -30 -16 -2 Closure Costs -9 -1 -41 Cash Uses Total -48 -55 $-,111 $-,133 $-,190 Net Cash Generated / (Used) $65 $26 $112 $230 $16 0 19 16 Computed Countervailing Duties 42 Asset Sale 0 17 1 Total 0 59 1 Cash Restructuring Total Restructuring 9 1 52 Non cash 0 0 -20 Luke Post Closure cost 0 0 7 Total 9 1 39 186 442 428 Borrowings on ther ABL -233 -507 -428 Payments against the ABL -65 -146 0 Payments Against the term loan -112 -211 0

Manageable Pension Liability ($M) 1Transferred to Pixelle as part of sale | 2Potential additional contribution of up to $45M in 2021 based on 2020 tax position | 3Updated mortality assumption benefited $17M and lump sum buyout resulted in an estimated $54M reduction (primarily driven by buyout at substantially higher rate than YE 2019 discount rate) Improving Pension Position Assets and PBO Net Unfunded Focused on reducing and de-risking pension exposure and reducing administrative costs Implemented lump sum buyout reducing Equity and Interest Rate volatility and reducing PBGC premiums (2019). Implemented cashflow driven investment strategy reducing asset sensitivity to interest rates (2018). Consolidated multiple plans reducing administrative costs (2018). Key Pension Statistics 2019 Asset Returns 18.7% 2020 Actuarial Assumptions Asset Return Discount Rate 0 6.5% 3.1% Net Liability Transferred 1 $35M Expected Cash Contribution 2 $54M 2019 – 2020 Net Liability Walk 2 3 Pension Projections 2020 Plan Actual Variance F'Cast Buyout Mortality Adjusted Liability Voluntary Adj Beg. 2020 Assumptions 2018 F/(UnF) Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E 2019 Impact Table 2019 Transfer Contribution 2020 Jan E Feb E Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P Asset Return (annual) -0.06 9.4% 0.23759999999999998 -0.38880000000000003 0.42599999999999993 7.7% 7.7% 7.7% 7.7% 7.7% 0.37 0.18659999999999999 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% Discount Rate (annual) 4.1700000000000001E-2 3.7700000000000004E-2 3.8500000000000006E-2 3.620000000000001E-2 3.570000000000001E-2 3.570000000000001E-2 3.570000000000001E-2 3.570000000000001E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 3.1099999999999999E-2 Duration 11.341193508548447 Years 11.3 Assets F'Cast F/(UnF) Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E F'Cast Jan E Feb E Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P Beginning Balance 1,295.8 -0.20000000000004547 1,246.6949685700802 1,249.2108559915935 1,275.368976068937 1,226.5173687910972 1,262.8504020498478 1,271.3086960618052 1,271.5163301221658 1,281.5251753812117 1,286.168420478785 1,286.3102736264912 1,161.6875487272455 1,161.6875487272455 -50 1,122.7631737299746 1,122.7631737299746 1,128.7531409210119 1,127.2755537676674 1,125.7899630172421 1,132.5963253169189 1,131.1395554123856 1,129.6748946708692 1,136.5023003503363 1,135.666878105674 1,155.2232990362079 1,155.890919059873 1,153.754157820478 1,122.7631737299746 1,152.4119928420059 1,162.1187723767366 1,158.7564925812244 1,147.5756645990041 1,127.2680827979393 1,105.6405081798052 1,082.6071412114925 1,058.766053902396 1,031.9515847406051 1,004.1284377487444 Contributions 42.8 -5.2000000000000028 0 8.3000000000000007 0 0 8.3000000000000007 0 9.8000000000000007 8.3000000000000007 0 0 42.2 42.2 0 September 0 7.5 0 0 8.3000000000000007 0 0 8.3000000000000007 0 21.6 8.3000000000000007 0 0 54 32.4 17.8 9 0 0 0 0 Distributions -94.3 -0.29999999999999716 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -7.0666666666666664 -84.799999999999969 -,146 -,230.79999999999995 0 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -7.45 -89.40000000000002 -91 -92 -93 -93 -93 -93 -93 -93 -93 -93 PBGC Prem and Expenses -9.6950000000000038 0.30499999999999616 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -8.7416666666666671 -0.14166666666666666 -0.14166666666666666 -10.300000000000002 -10.300000000000002 0 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -0.14166666666666666 -7.2416666666666707 -0.14166666666666666 -0.141666666666667 -8.800000000000006 -6.6000000000000005 -4.7 -2.5 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 Asset Return -72.917451272754619 -,158.41745127275462 9.7242207548466251 24.734374948633548 -41.311195482463361 43.541366592083939 7.3666273452907802 7.4159673936938644 7.417178592379301 12 7.5017649119459584 39.661233436816808 209.97562500272866 209.97562500272866 0 6.0816338577040296 6.1140795133221486 6.1060759162415321 6.0980289663433949 6.1348967621333115 6.1270059251504216 6.1190723461338754 6.1560541268976552 6.1482778923072408 6.2574595364461265 6.2567325811574319 6.2495016881942567 73.848819112031435 74.90677953473039 75.537720204487883 75.319172017779593 74.592418198935263 73.272425381866057 71.866633031687343 70.369464178747009 68.77497935036557 67.076853008139338 65.268348453668395 Ending Balance 1,161.6875487272455 -,163.81245127275466 1,249.2108559915935 1,275.368976068937 1,226.5173687910972 1,262.8504020498478 1,271.3086960618052 1,271.5163301221658 1,281.5251753812117 1,286.168420478785 1,286.3102736264912 1,318.7631737299746 1,318.7631737299746 -,146 1,172.7631737299746 -50 0 1,122.7631737299746 1,128.7531409210119 1,127.2755537676674 1,125.7899630172421 1,132.5963253169189 1,131.1395554123856 1,129.6748946708692 1,136.5023003503363 1,135.666878105674 1,155.2232990362079 1,155.890919059873 1,153.754157820478 1,152.4119928420055 1,152.4119928420059 1,162.1187723767366 1,158.7564925812244 1,147.5756645990041 1,127.2680827979393 1,105.6405081798052 1,082.6071412114925 1,058.766053902396 1,031.9515847406051 1,004.1284377487444 974.49678620241286 Liabilities F'Cast F/(UnF) Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E F'Cast Adj 2019 Adj Beg 2020 Jan E Feb E Mar E Apr E May E Jun E Jul E Aug E Sep E Oct E Nov E Dec E 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P Beginning Balance 1,752.9 9.9999999999909051E-2 1,601.3563655965709 1,653.995123482136 1,637.4161570358156 1,676.5588249327068 1,683.2562536747287 1,680.7712743627442 1,678.2789022373065 1,675.7791153047958 1,759.4004051863451 1,756.4675179031196 1,589.8383430237263 1,589.8383430237263 -85 1,456.767517903121 1,456.767517903121 1,453.503070536865 1,449.3234624328006 1,445.586959072939 1,441.8407719418697 1,438.848759424855 1,434.3192459126362 1,430.5438566249597 1,426.7586827867126 1,422.9636990396014 1,419.1588799596122 1,415.3442000568409 1,456.767517903121 1,418.1196337753224 1,375.623154385735 1,330.3050344871315 1,281.8775210596814 1,231.1439119646375 1,178.8324876267377 1,124.8941779919294 1,069.2783869274786 1,011.9329447609231 952.80405934298778 Distributions -94.3 0.29999999999999716 -8 -8 -8 -8 -8 -8 -8 -8 -8 -7.0666666666666664 -84.799999999999969 -,200 -17 -,301.79999999999995 0 -8 -8 -8 -8 -8 -8 -8 -8 -8 -8 -8 -8 -89.40000000000002 -91 -92 -93 -93 -93 -93 -93 -93 -93 -93 Interest Cost 66.626772434116404 -5.626772434116404 5.0309279152492277 5.3065676878385206 4.9395387403913782 4.9877625041748042 5.0076873546823188 5.0002945412291657 4.9928797341559887 4.3430608738315959 4.5597793834412776 0.3 55.303546655539165 55.303546655539165 0 3.7754558172322548 3.7658220457808045 3.7561633068050084 3.7464795355973668 3.7367706672826788 3.7270366368176084 3.7172773789902487 3.7074928284196873 3.6976829195555632 3.6878475866776337 3.6779867638953281 3.6681003851473126 44.664115872201499 44.103520610412524 42.781880101396361 41.372486572549789 39.866390904956091 38.288575662100222 36.661690365191539 34.984208935549006 33.254557833444579 31.471114582064708 29.63220624556692 Service Cost 6.0880000000000001 -8.8000000000000078E-2 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 0.5073333333333333 -1.2 4.3806666666666665 4.3806666666666665 0 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 0.50733333333333297 6.0879999999999974 4.4000000000000004 3.9 3.2 2.4 2.4 2.4 2.4 2.4 2.4 2.4 Rate Change Impact -,141.47642941039021 141.47642941039021 55.100496636982598 -14.392867467492124 41.695795823166691 9.2023329045139235 0 0 0 86.770895674384519 0 0 194.0449615571888 194.0449615571888 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ending Balance 1,589.8383430237263 136.16165697627372 1,653.995123482136 1,637.4161570358156 1,676.5588249327068 1,683.2562536747287 1,680.7712743627442 1,678.2789022373065 1,675.7791153047958 1,759.4004051863451 1,756.4675179031196 1,748.5008512364529 1,758.767517903121 -,200 -17 1,541.767517903121 -85 0 1,456.767517903121 1,453.503070536865 1,449.3234624328006 1,445.586959072939 1,441.8407719418697 1,438.848759424855 1,434.3192459126362 1,430.5438566249597 1,426.7586827867126 1,422.9636990396014 1,419.1588799596122 1,415.3442000568409 1,411.5196337753214 1,418.1196337753224 1,375.623154385735 1,330.3050344871315 1,281.8775210596814 1,231.1439119646375 1,178.8324876267377 1,124.8941779919294 1,069.2783869274786 1,011.9329447609231 952.80405934298778 891.83626558855474 Net Liability (GAAP) 428.15079429648085 -27.150794296480854 404.78426749054256 362.37925942892184 450.04145614160961 420.40585162488082 409.46257830093896 406.76257211514076 394.25393992358408 473.38356313846657 470.15724427662849 429.73767750647835 440.00434417314636 -54 -17 369.00434417314636 -35 0 334.00434417314636 324.29716613267465 322.04790866513326 319.79699605569681 309.2444466249508 306.94532053009993 304.64435124176703 294.04155627462342 291.69199497614522 267.74040000339346 264.06978805362496 261.59004223636293 259.10764093331591 265.7076409333165 213.50438200899839 171.54854190590709 134.3018564606773 103.87582916669817 73.191979446932464 42.287036780436893 11.201781537238958 -20.018639979682007 -51.324378405756647 -82.660520613858125 Percent Funded 0.73069539039914122 -3.6975525012214461E-2 0.75526876606603588 0.77868835734164832 0.73156834735001131 0.75024251316037605 0.75638411689527207 0.75763112342478522 0.76473394594616606 0.73094040347891776 0.73232795967789677 0.75422506817620982 0.74982233882864824 0.76066148761843788 0.77072227375448754 0.77681628464038255 0.77779431782291641 0.77877706073055342 0.78552108343526683 0.7865596630178483 0.78760352542859013 0.79445470691940401 0.79555618024596908 0.81184312700028882 0.81392514130543292 0.81517567088920329 0.8164335552029881 0.81263383243207143 0.84479442547306083 0.87104570947365945 0.8952303521559104 0.91562657447500595 0.93791146730755204 0.96240798680643513 0.98952398021489352 1.0197825755978442 1.0538666663963918 1.0926857583654186 Changes Since Plan Document 2019 2020E 2021P 2022P 2023P 2024P 2025P 2026P 2027P 2028P 2029P 2030P 43846 Change the assumed asset return to 6.5% from 7.0% 2020 forward Unfunded Liability - Beginning $-,428.15079429648085 $-,369.434417314682 $-,265.7076409333169 $-,213.50438200899902 $-,171.54854190590748 $-,134.3018564606777 $-,103.87582916669854 $-73.191979446932706 $-42.2870367804369 $-11.201781537238896 $20.018639979682099 $51.32437840575674 43846 Change the Discount rate from 3.05 to 3.11 YR 2019 forward Company Contributions 42.2 54 32.4 17.8 9 0 0 0 0 0 0 0 Asset Returns 209.97562500272866 73.848819112031435 74.90677953473039 75.537720204487883 75.319172017779593 74.592418198935263 73.272425381866057 71.866633031687343 70.369464178747009 68.77497935036557 67.076853008139338 65.268348453668395 0 Discount Rate Change -,194.449615571888 0 0 0 0 0 0 0 0 0 0 0 Interest/Service Cost -59.684213322205835 -50.7521158722015 -48.503520610412522 -46.681880101396359 -44.572486572549792 -42.26639090495609 -40.68857566210022 -39.061690365191538 -37.384208935549005 -35.654557833444578 -33.871114582064706 -32.032206245566918 Plan Expenses -10.300000000000002 -8.8000000000000025 -6.6000000000000005 -4.7 -2.5 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 -1.9 Buyout / Mortality change 71 0 0 0 0 0 0 0 0 0 0 0 Mill Sale 0 35 0 0 0 0 0 0 0 0 0 0 Unfunded Liability - Ending $-,369.434417314682 $0 $-,265.7076409333169 $-,213.50438200899902 $-,171.54854190590748 $-,134.3018564606777 $-,103.87582916669854 $-73.191979446932706 $-42.2870367804369 $-11.201781537238896 $20.018639979682099 $51.32437840575674 $82.66052061385821 Assets $1,172.7631737299746 $1,152.4119928420059 Liabilities $1,541.767517903121 $1,418.1196337753224 Original plan Data ($ millions) 2019E 2020P 2021P 2022P 2023P Unfunded Liability - Beginning $-,428.15079429648085 $-,428.94681297739214 $-,278.57992893978513 $-,216.45467285724027 $-,138.3809103901132 Company Contributions 43.2 97.2 36 47 47 Asset Returns 177.46562771582754 77.532745460934166 80.84901453328051 82.007445550610157 84.037966739152864 Discount Rate Change -,205.71873673096457 0 0 0 0 Interest/Service Cost -65.442909665774252 -50.565861423327107 -48.123758450735664 -46.233683083483101 -44.037160417529343 Plan Expenses -10.300000000000002 -8.8000000000000025 -6.6000000000000005 -4.7 -2.5 Buyout / Mortality change 60 0 0 0 0 Mill Sale 0 35 0 0 0 Unfunded Liability - Ending $-,428.94681297739214 $0 $-,278.57992893978513 $-,216.45467285724027 $-,138.3809103901132 $-53.880104068489679

2020 Outlook Market demand decline projected by industry analysts for 2020 is expected to be in the mid to high single digit range for printing and writing grades. Historically the first half of the year is weaker due to mill outages in the spring and the seasonal nature of our business. 2020 Guidance Capital expenditures $55M to $60M Pension contributions $54M Tax payments$3M to $6M

APPENDIX

EBITDA and Adjusted EBITDA Definitions EBITDA consists of earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA reflects adjustments to EBITDA to eliminate the impact of certain items that we do not consider to be indicative of our ongoing performance. We use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as a way of evaluating our performance relative to that of our peers and to assess compliance with our credit facilities. We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP operating performance measures commonly used in our industry that provide investors and analysts with measures of ongoing operating results, unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. We believe that the supplemental adjustments applied in calculating Adjusted EBITDA and Adjusted EBITDA Margin are reasonable and appropriate to provide additional information to investors.

Major Maintenance – Current Operating Platform Major Outage Timing Q1 Q2 Q3 Q4 2018 Quinnesec Wisconsin Rapids No Major Outage Escanaba 2019 No Major Outage Wisconsin Rapids Escanaba No Major Outage 2020P No Major Outage Wisconsin Rapids Escanaba No Major Outage $M

Q4 2018 and Q4 2019 Adjusted EBITDA Reconciliation

Q4 2018 and FY 2018 P&L Adjusted EBITDA Add Back Items

Q4 2019 and FY 2019 P&L Adjusted EBITDA Add Back Items

Verso Post Mill Sale 2019 FY Adjusted EBITDA Reconciliation

XML

Document And Entity Information	Feb. 27, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2020
Entity Registrant Name	VERSO CORPORATION
Entity Central Index Key	0001421182
Entity File Number	001-34056
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-3217389
Entity Address, Address Line One	8540 Gander Creek Drive
Entity Address, City or Town	Miamisburg
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45342
City Area Code	877
Local Phone Number	855-7243
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Class A common stock, par value $0.01 per share
Trading Symbol	VRS
Security Exchange Name	NYSE