Slide 1: Cascades
|e Cascades
Slide 2: 2023 Annual General Meeting of Shareholders
2023 Annual General Meeting of Shareholders Tj} Cascades
Slide 3: Forward-Looking Statement
3 FORWARD-LOOKING STATEMENT Certain statements that may be made today, including statements regarding future results and performance, are forward-looking statements within the meaning of securities legislation based on current expectations. The accuracy of such statements is subject to a number of r
Slide 4: Executive Chairman of the Board of Directors
4 Executive Chairman of the Board of Directors
Slide 5: Word of Welcome
5 5 Word of Welcome
Slide 6: Opening of the 2023 Annual General Meeting
6 6 Opening of the 2023 Annual General Meeting
Slide 7: Executive Chairman of the Board of Directors
7 Executive Chairman of the President and Chief Vice-President and Chief Corporate Secretary Board of Directors Executive Officer Financial Officer
Slide 8: Meeting Procedures
8 8 Meeting Procedures
Slide 9: Confirmation of the Mailing of the Notice of Meeting, Management Proxy Circular and Proxy Form
9 9 Confirmation of the Mailing of the Notice of Meeting, Management Proxy Circular and Proxy Form
Slide 10: Report of the Scrutineers
10 10 Report of the Scrutineers
Slide 11: Filing of the Audited Consolidated Financial Statements for 2022
11 11 Filing of the Audited Consolidated Financial Statements for the year ended December 31, 2022, and the Independent Auditor’s Report
Slide 12: Election of Directors
12 12 Election of Directors
Slide 13: Élise Pelletier, Martin Couture
13 13 Élise Pelletier Martin Couture
Slide 14: Election of Directors
14 14 Election of Directors Alain Sylvie Sylvie Mario Lemaire Lemaire Vachon Plourde Patrick Hubert T. Michelle Lacroix Cormier Lemaire Nelson Mélanie Elif Alex N. Gentiletti Dunn Lévesque Blanco
Slide 15: Appointment of the Independent Auditor
15 15 Appointment of the Independent Auditor PricewaterhouseCoopers LLP Partnership of chartered professional accountants
Slide 16: Advisory Vote on Executive Compensation
16 16 Advisory Vote on Executive Compensation Accepting the Corporation’s Approach to Executive Compensation
Slide 17: Special Resolution on Replenishment of the Share Reserve for Stock Option Plan
17 17 Special Resolution for the Purpose of Approving the Replenishment of the Share Reserve for the Corporation's Stock Option Plan
Slide 18: Shareholder Proposals
18 18 Shareholder Proposals
Slide 19: Vote and Voting Results
19 19 Vote and Voting Results
Slide 20: President and Chief Executive Officer
20 20 President and Chief Executive Officer
Slide 21: Highlights 2022
21 2022 -3% 33% Containerboard 19% Packaging Highlights SALES1 52% Specialty Products EBITDA (A)1,2 84% 15% Tissue 2022 IN REVIEW: • Good progress with Strategic Plan and the Bear Island project • Good underlying demand for packaging and tissue products • Prices of brown recycled fibre grades decrea
Slide 22: Sales
22 Sales ($M) +13% 4,466 +4% -4% 4,105 3,948 3,956 2019 2020 2021 2022
Slide 23: EBITDA (A)
23 +10% -29% EBITDA (A)1 ($M) (Adjusted earnings before 546 interest, taxes, depreciation and amortization) 496 OPERATING -3% INCOME 389 376 292 216 margin1 margin1 margin1 margin1 12.6% 13.3% 9.8% 8.4% 50 33 2019 2020 2021 2022 1 EBITDA (A) Operating income (1) Some information represents Non-IFRS
Slide 24: Investments
24 Investments ($M) $532 Corporate Tissue & IT STRATEGICS PROJECTS INCLUDED CONTAINERBOARD million Specialty 36 41 Products • Bear Island conversion project 29 (Virginia, US) TISSUE Containerboard • Converting lines (US, Canada) 426 CORPORATE & IT • Water treatment system (Québec) SPECIALTY PRODUCTS
Slide 25: Sales CAGR 2019–2022
25 2019 – 2022 Sales CAGR2: ($M) +13% +5% 2,265 +5% 2,009 +7.4% 1,827 1,918 2022 Highlights: - Higher selling prices - Favourable FX -8% +8% -9% - Significant inflation 441 403 401 372 pressure logistics, energy, chemical and labour costs 24.1% 21.0% 18.5% 17.7% - Softer volume 2019 2020 2021 2022 S
Slide 26: Bear Island
26 Bear Island Eco-friendly, highly competitive products will complement Greenpac Mill product offering Production Annual Annual Capacity Used Production EBITDA (‘000 s.t.) (US$M) 2023 ~43% ~202,000 ~$10 2024 ~91% ~422,000 FIRST PAPER ROLL 2025 ~96% ~446,000 May 2nd, 2023 Aligned with key market tre
Slide 27: 2022 EBITDA (A)
27 2022 EBITDA (A) ($M) +19% Margin1: 14% 654 +16% Since 2019: -4% 548 + 67% 492 473 + 290 bps 2022 Highlights: - Higher selling prices +23% +24% - Favourable FX +9% 92 - Softer volume 60 74 55 - Important cost inflation in 12.7% 13.5% 14.1% 11.2% transportation, energy and production supplies 2019
Slide 28: 2022 Sales EBITDA (A) Margin
28 2022 Sales ($M) +12% +7% -21% EBITDA (A) +12% 1,615 Margin1 lower 1,509 1,422 year-over-year 1,272 2022 Highlights: - Sales growth supported by pricing initiatives, FX & mix - Significant cost inflation -85% impacted profitability levels +103% 175 -148% 86 10.8% 27 5.7% 2.1% ( 13 ) (0.9%) 2019 20
Slide 29: Vice-President and Chief Financial Officer
29 Vice-President and Chief Financial Officer
Slide 30: Net debt as of December 31, 2022
30 +46% +$615 M 501 116 1,966 111 87 7 72 1,351 (260) (19) Net debt as of Cash flow from Investments Dividends Right-of-use F/X CAN$ Change in non- Payments for Net debt as of Proceeds from December 31, operating & others paid & assets and cash working property, plant and December 31, disposals of 2
Slide 31: Dividends, Share Repurchases, Dividend Yield
31 6,0% 5,7% 60 5,0% 26 9 4,0% 40 8 2,9% 3,0% 9 20 2,2% 48 2,1% 2,0% 20 41 1,6% 1,2% 31 23 1,0% 15 15 0 0,0% 2017 2018 2019 2020 2021 2022 Dividends Share Repurchases Dividend Yield
Slide 32: Long-Term Debt Maturities
32 NET DEBT/EBITDA (A)1,2,3 LONG-TERM DEBT MATURITIES (as of December 31, 2022, in $M) 5.2x 629 4.6x 4.7x 610 4.0x 350 3.8x 3.6x 3.5x 3.5x 3.25x 352 2.5x 174 175 279 134 67 140 46 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 year >1 year 2025 2026 2027 2028 Senior notes Subsidiaries debts Ter
Slide 33: Q1 2023 Results
Q1 2023 Results
Slide 34: Q1 2023 Results Summary
34 (in millions of Canadian dollars, except per common share amounts) Q1 2023 Q4 2022 Q1 2022 Sales 1,134 1,135 1,038 Operating loss (80) (20) (4) EBITDA (A)1 134 116 58 Net loss (75) (27) (15) Adjusted net earnings (net loss)1 33 22 (15) Net loss per common share ($0.75) ($0.27) ($0.15) Adjusted ne
Slide 35: Recycled Fibre and Virgin Pulp Prices
35 Recycled Fibre Prices Virgin Pulp Prices (US $/s.t.) Current (US $/s.t.) Current (May-23) (April-23) 1,600 194 1,390 48 White grades (Basket of products) Brown grades (OCC) NBSK NBHK Recovered Paper Prices (US$/s.t.) Q1 2023 Q4 2022 Q1 2022 Q1/Q1 Q1/Q4 White grades - Basket of products (Northeast
Slide 36: Q1 Operating Loss and EBITDA (A) Bridge
36 (in $M) +131% +$76 M 5 134 33 46 (8) 60 2 58 (4) (152) (62) (80) Q1 2022 Depr. & Specific Q1 2022 1 Container- Tissue Specialty Corporate Q1 2023 1 Specific Depr. & Q1 2023 Operating loss Amort. items EBITDA (A) board Papers Products Activities, EBITDA (A) items Amort. Operating loss Recovery and
Slide 37: Net Debt as of March 31, 2023
37 (in $M) 140 +5% +$104 M 46 2,070 1,966 15 (89) 8 (9) (4) (3) Proceeds from Dividends Net debt as of Cash flow from Investments and F/X CAN$ Right-of-use Change in non- Payments for Net debt as of disposals of paid December 31, operating others assets cash working property, plant and March 31, 202
Slide 38: President and Chief Executive Officer
38 38 President and Chief Executive Officer President and Chief Executive Officer
Slide 39: 2023 Outlook
39 Bear Island start-up early May 2023 Costs of logistics, energy, labour and production supplies Stable demand for Packaging products remain elevated Steady demand for Tissue, with good retail Slightly lower average demand mitigating some softness in AfH Containerboard selling prices Annualized ben
Slide 40: Financial Targets
40 Focus on free cash flow generation; Maintaining financial flexibility 1 Sales: ~$5.0 B+ in 2024 EBITDA (A)4 ~ 12% - 14% in 2024 2 Margin: Financial Capex: ~$325 M in 2023 (incl. $175 M for Bear Island) 3 Targets ~$175 M in 20241 Free cash ~9% - 10% of sales, following 4 flow2,3: completion of Bea
Slide 41: Recognized for Sustainable Business Practices
41 We have been recognized for our sustainable business practices and focus on our employees.
Slide 42: Where We Are, Where We're Going
42 Our track record and our sustainability action plan both show we are solutions driven, and we can enable our customers to reduce their footprint through our value-added eco-friendly products and services. Where We Are Where We’re Going 4.3x less water than the industry1 Aggressive GHG reduction t
Slide 43: Innovative and Sustainable Solutions
43 Innovative and Sustainable Solutions 100% Soe ee Ne
Slide 44: Our Employer Brand
Our Employer Brand Cascades Cascades Cascades mw}
Slide 45: Question Period
45 45 Question Period
Slide 46: Adjournment of the Meeting
46 46 Adjournment of the Meeting
Slide 47: Investor Relations and Communications Contacts
47 Jennifer Aitken, MBA Hugo D'Amours Director, Investor Relations Vice-President, Communications, Public Affairs and Sustainable Development 514-282-2697 418-573-2348 investisseurs@cascades.com hugo_damours@cascades.com
Slide 48: Thank you!
2023 Annual General Meeting of Shareholders Thank you! Tj} Cascades
Slide 49: Cascades
|e Cascades