Slide 1: Q1 2022 Financial Results
Q1 2022 FINANCIAL RESULTS May 12, 2022
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENT Certain statements in this presentation, 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 numb
Slide 3: Overview
OVERVIEW Main variances in Q1-2022 vs Q4-2021: • Pricing & Mix: $35 million • Freight & Logistics: ($17) million • Volume & FX: ($8) million • Raw material & Energy: ($11) million Demand: • Containerboard: Good market demand, slightly offset by lower converting order intake levels in Québec and Onta
Slide 4: Summary of Quarterly Financial Results & KPIs
SUMMARY OF QUARTERLY FINANCIAL RESULTS & KPIs 20202 2021 2022 (In millions of CAN$, except per common 2 share amounts, where noted) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Financial Results Sales 1,041 1,020 1,014 1,030 4,105 942 956 1,030 1,028 3,956 1,038 Operating income (loss) 70 64 54 104 292 44 2
Slide 5: Recycled Fibre Costs - Index List Prices
RECYCLED FIBRE COSTS - INDEX LIST PRICES Current ($ US/s.t.) (May-22) OCC: 275 250 243 • Stable market, good inventories at our mills 225 • Favourable pricing trend sequentially; higher YoY 200 • Persistent challenges with transportation 175 150 • Export levels limited by port congestion and contain
Slide 6: Virgin Fibre Costs - Index List Prices
VIRGIN FIBRE COSTS - INDEX LIST PRICES Current ($ US/s.t.) (May-22) VIRGIN PULP: 1,800 1,695 • Supply impacted by multiple events: maintenance downtime, idling of production due to logistics 1,600 1,460 constraints, labour disruptions 1,400 • Significant challenges with transportation: pulp tonnage
Slide 7: Packaging Products / Containerboard
PACKAGING PRODUCTS / CONTAINERBOARD Results Change vs. Comments on sequential performance Q1 2022 Q4 2021 Q1 2021 è Total shipments increased by 1% sequentially. Shipments of parent rolls increased by Shipments ('000 s.t.) 4% while those of converted products decreased by 1% on a sequential basis. 3
Slide 8: Packaging Products / Containerboard
PACKAGING PRODUCTS / CONTAINERBOARD Quarterly Operating Income & Adjusted OIBD1 (M CAN$) è Lower first quarter 2022 shipments reflect record levels in prior year period, lower order intake in Quebec and Ontario in current 21% 20% 19% 14% 15% period due to transportation constraints and customer eros
Slide 9: Packaging Products / Containerboard - Bear Island
PACKAGING PRODUCTS / CONTAINERBOARD - BEAR ISLAND (in millions of Canadian dollars unless otherwise specified) STATUS PROJECT COST US $425 - $450 M On track INVESTMENT TO DATE US $188 M ($241 M) On track START-UP December 14, 2022 On track Q1 2022: CAN ($2 M) CONTAINERBOARD ADJ. OIBD1 IMPACT On trac
Slide 10: Packaging Products / Specialty Products
PACKAGING PRODUCTS / SPECIALTY PRODUCTS Results Change vs. Comments on sequential performance Q1 2022 Q4 2021 Q1 2021 è Sales increased by 4% sequentially. Price increases in response to cost inflation Sales (M$) contributed positively to all of our sub-segments. These were partly offset by less 157
Slide 11: Packaging Products / Specialty Products
PACKAGING PRODUCTS / SPECIALTY PRODUCTS 1 Quarterly Operating Income & Adjusted OIBD1 (M CAN$) è Q1 2022 adjusted OIBD of $22 M was the second consecutive record quarterly level, and increased 5% sequentially and 22% 15% 14% 12% 14% 14% versus prior year. 24 21 22 18 18 17 17 è Industrial packaging:
Slide 12: Tissue Papers
TISSUE PAPERS Results Change vs. Comments on sequential performance Q1 2022 Q4 2021 Q1 2021 è Shipments decreased by 10% on a sequential basis in the first quarter. This reflects a Shipments ('000 s.t.) 8% decrease in shipments of converted products and a decrease in external 131 (10)% 7% shipments
Slide 13: Tissue Papers
TISSUE PAPERS Quarterly Operating Income (Loss) & Adjusted OIBD1 (M CAN$) è Continued to see positive demand level momentum for both Away-from-Home and Retail tissue as effects of pandemic 7% —% 3% (2)% stabilize and economic reopening continues. (5)% 29 20 è Significant increase in input and logist
Slide 14: Tissue Papers - Strategic Plan Update
TISSUE PAPERS - STRATEGIC PLAN UPDATE (M CAN$) 1 è Our plan is progressing as expected despite significant 2022 Adj. OIBD Target - 60 - 80 additional cost headwinds in recycled fibre, virgin pulp Strategic Plan (February 2022) and energy (~$15 M) and transportation (~$35 M). 2022 target of 65-70 M c
Slide 15: Q1 2022 Adjusted OIBD to Operating Income (Loss) Reconciliation
Q1 2022 ADJUSTED OIBD TO OPERATING INCOME (LOSS) RECONCILIATION (M CAN$) 58 50 6 0 (60) (2) (1) (7) (4) Adjusted Depr. & Adjusted Gain on acq., Restructuring Unrealized loss Operating 1 OIBD Amort. Operating disp. and others costs on financial loss 1 loss instruments Container- Specialty Tissue Corp
Slide 16: Net Loss - IFRS vs Adjusted
NET LOSS - IFRS VS ADJUSTED2 NET LOSS NET LOSS PER COMMON SHARE1 (In millions of Canadian dollars, except per common share amounts) Q1 2022 Q1 2022 As per IFRS (15) ($0.15) Specific items: Gain on acquisitions, disposals and others (6) ($0.05) Restructuring costs 1 $0.01 Unrealized loss on financial
Slide 17: Quarterly Year-Over-Year Adjusted EPS Variance
QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 0.50 0.04 0.01 0.05 (0.01) 0.07 0.29 (0.06) 0.25 0.22 $ cents Q4 2021 Redemption of debt 0.00 (0.47) (0.15) — (0.15) -0.25 EPS Specific Adjusted Financing Depreciation Share of Income Non- OIBD Adjusted Specific EPS reported items EPS 2 expense & res
Slide 18: Quarterly Sequential Adjusted EPS Variance
QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 1.04 1.00 Q4 2021 Redemption of debt 0.75 $ cents 0.50 0.25 0.00 0.04 (1.13) (0.09) (0.01) (0.02) — (0.03) (0.04) -0.25 (0.15) (0.15) EPS reported Specific Adjusted Financing Non- Share of OIBD Income Adjusted Specific EPS reported Q4 2021 items EPS 2 ex
Slide 19: Cash Flow Overview
CASH FLOW OVERVIEW 2020 4 2021 2022 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 Year Q1 4 Q2 Q3 Q4 Year Q1 Cash flow from operations 124 125 78 131 458 82 87 58 20 247 21 Specific items1 — — 9 6 15 4 2 12 31 49 7 Adjusted cash flow from operations2 124 125 87 137 473 86 89 70
Slide 20: Capital Investments
CAPITAL INVESTMENTS (in millions of Canadian dollars, excluding new leases, disposal of assets and accounts payable variation) 2022F CAPEX: $415 M1 includes ~ CAN$275 M for Bear Island conversion 415 15 35 330 40 312 26 27 50 81 227 213 37 39 22 169 20 24 325 104 85 61 217 184 22 78 22 18 62 66 84 6
Slide 21: Net Debt Reconciliation - Q1 2022
NET DEBT1 RECONCILIATION - Q1 2022 (M CAN$) 1,600 102 1,549 1,500 94 1,400 21 1,351 21 1 1,300 (21) (14) (6) 1,200 Net debt as of Cash flow F/X CAN$ Proceeds from Investments Right-of-use Dividends paid Changes in Payments for Net debt as of December 31, from oper. disposals of and others assets & n
Slide 22: Consolidated Financial Ratios & Debt Maturities
CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Net Debt / Adjusted OIBD1,3 Interest Coverage Ratio2,3 4.8x 6.7x 4.6x 4.7x 5.8x 6.0x 4.0x 3.8x 4.7x 4.6x 4.3x 3.6x 3.5x 3.25x 3.5x 4.6x 4.2x 2.5x 3.4x 3.4x 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1
Slide 23: Near Term Factors
NEAR TERM FACTORS vs Q1 2022 vs Q2 2021 • Logistics and production costs: expect continued pressure on Q2 2022 costs YoY and QoQ in Q2 for all business segments. OIBD Trend • Containerboard: QoQ performance to reflect good seasonal demand, lower average raw material prices and announced price increa
Slide 24: Appendix
APPENDIX 24
Slide 25: Year Over Year Sales Reconciliation
YEAR OVER YEAR SALES RECONCILIATION (M CAN$) +10% 1,100 13 4 1,038 84 (1) (4) 1,000 942 900 Sales Recovery & Sales (M CAN$) Q1 2021 Price & Mix Recycling Volume F/X CAN$ Other Q1 2022 Containerboard 503 54 — (23) — — 534 Specialty Products 122 26 — 9 — — 157 Tissue Papers 292 4 — 18 — — 314 Corporat
Slide 26: Year-Over-Year Operating Income (Loss) Reconciliation
YEAR-OVER-YEAR OPERATING INCOME (LOSS) RECONCILIATION + Higher selling prices + Higher realized spreads and more favourable sales mix - Higher raw material, energy, logistics and operational costs - Higher raw material, logistics and + Higher volume operational costs - Lower volumes + Higher selling
Slide 27: Sequential Sales Reconciliation
SEQUENTIAL SALES RECONCILIATION +1% (M CAN$) 1,075 36 3 — (1) 1,050 1,038 1,028 (28) 1,025 1,000 Sales Recovery & Sales (M CAN$) Q4 2021 Price & Mix F/X CAN$ Other Recycling Volume Q1 2022 Containerboard 502 26 1 — — 5 534 Specialty Products 151 6 1 — — (1) 157 Tissue Papers 339 4 1 2 — (32) 314 Cor
Slide 28: Sequential Operating Income (Loss) Reconciliation
SEQUENTIAL OPERATING INCOME (LOSS) RECONCILIATION + Higher selling prices + Higher selling prices and favourable mix + Slightly higher volume - Lower volume - Higher logistics, energy and operational costs - Higher raw material and logistics costs (M CAN$) 150 100 10 1 92 62 58 50 (4) (11) (2) 0 60
Slide 29: Selected Reference Prices
SELECTED REFERENCE PRICES Current Current Containerboard - Selected Products (US$/s.t.) Specialty Products - Selected Products (May-22) (US$/s.t.) (May-22) 1,100 1,050 1,000 935 1,000 900 865 900 800 800 700 700 600 600 Feb 19 Nov-21 Feb-20 Aug 18 Aug-19 May-22 Aug-21 Nov-20 May-21 Feb-21 Aug-20 Nov
Slide 30: Selected Reference Prices and Fibre Costs
SELECTED REFERENCE PRICES AND FIBRE COSTS Q1 2022 vs Q1 2022 vs 2020 2021 2022 Q1 2021 Q4 2021 These indexes should only be used as an indicator of trends and they may be different than our actual selling prices or purchasing costs. Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 (units) (%) (units) (%) Sellin
Slide 31: For More Information
For more information: www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investisseur@cascades.com