Cascades Inc. · TSX:CAS
Cascades — Debt Investor Presentation (May 2025)
29 slides from Cascades's debt investor presentation, May 2025
Slide 1: Cascades Investor Presentation
Cascades Investor Presentation May 2025
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: Executive Summary (I) – Today's Presenters
Executive Summary (I) Today’s Presenters Hugues Simon Allan Hogg President and Vice-President and Chief Executive Officer Chief Financial Officer ▪ 30+ years at Cascades ▪ Joined Cascades in June 2024 ▪ Held several positions within Cascades, including ▪ Worked for more than thirty years in key posi
Slide 4: Executive Summary (II) – Transaction Overview
Executive Summary (II) Transaction Overview ▪ Cascades Inc. (“Cascades” or the “Company”) is a leading paper and packaging company that produces, converts, and sells packaging and tissue products composed primarily of recycled fibers — For LTM 3/31/2025, Cascades generated Sales and EBITDA (A) of C$
Slide 5: Executive Summary (III) – Transaction Update
Executive Summary (III) Transaction Update Capitalization 1 Sources and Uses 1 Q1’2025 (C$M) Maturity Q1’25 2 Pro Forma Sources C$ Uses C$ Recourse Debt New 2030 Notes (US$400M) $575 Repayment of 2026 Notes $296 Partial Repayment of Revolver $265 Revolving Credit Facility (C$750M) 2027 $542 $277 Acc
Slide 6: Executive Summary (IV) – Summary of Indicative Terms
Executive Summary (IV) Summary of Indicative Terms Summary of Terms Issuers Cascades Inc. and Cascades USA Inc. Issue Senior Unsecured Notes Amount US$400 million Guarantors Same as Existing Senior Unsecured Notes Tenor 5 years Proceeds from the Offering will be used to fund the redemption of all of
Slide 7: Company Overview
Company Overview Investor Investor Presentation Presentation 7 7
Slide 8: We care. We innovate. We create value.
We care. We innovate. We create value. Mission Vision To improve the well-being of To be a key contributor to people, communities and the our customers’ success by planet by providing sustainable leading the way for sustainable and innovative solutions that packaging, hygiene and create value. recov
Slide 9: Key Credit Highlights
Key Credit Highlights 60+ year track record of successful operations through business cycles Leading market positions in North America with a deep focus on markets where Cascades can derive a competitive advantage Well-balanced product portfolio and manufacturing footprint to best serve customers an
Slide 10: Company Overview (I)
Company Overview (I) At-a-Glance (as of December 2024) $4.7B 32% SALES 1 51% SALES 49% EBITDA (A) 50% $501M 18% EBITDA (A) 2 2 Canada United States Containerboard Specialty Products Tissue Paper Packaging Tissue Containerboard Specialty Products Papers Packaging Packaging ▪ Leading containerboard pr
Slide 11: Company Overview (II)
Company Overview (II) North American, Diversified Manufacturing Platform As of 5/28/25 Containerboard ▪ 6 Linerboard & Corrugated Medium Mills Kingsey Falls, QC ‒ Annual Production Capacity: 1.805M s.t. 1 ▪ 17 Converting Facilities 9 Specialty Products 3 ▪ 16 Facilities ‒ 9 in Industrial Packaging 2
Slide 12: Segment Overview — Packaging (I)
Segment Overview — Packaging (I) Q1’2025 Figures Key Highlights Sales by Sales by Sales by EBITDA (A) by Product Category 1 Industry 2 Country Product Category ▪ Vertically integrated, Canadian 12% leader in sustainable packaging 15% 17% 32% solutions 41% 28% 55% 59% 35% 88% 18% ▪ One of Canada’s le
Slide 13: Segment Overview — Packaging (II)
Segment Overview — Packaging (II) (C$M) Segment Updates Total Shipments 1 & Utilization Rate − L5Y Total Shipments ( 000 s.t.) Capacity tili ation ate ( ) ▪ Growth supported by targeted investments and realignment of operational platform .0 .0 1.0 0.0 0.0 .0 ▪ Competitive geographic footprint across
Slide 14: Segment Overview — Tissue (I)
Segment Overview — Tissue (I) Q1’2025 Figures Key Highlights Sales by Sales ▪ One of Canada’s leading tissue paper product category by country producers 2% ▪ 7th largest producer in North America 35% 52% 48% 63% ▪ Manufactures tissue paper rolls and converts them into finished products for the indus
Slide 15: Segment Overview — Tissue (II)
Segment Overview — Tissue (II) (C$M) Segment Updates Total Shipments & Utilization Rate − L5Y Total Shipments ( 000 s.t.) Capacity tili ation ate ( ) ▪ Operational platform fully repositioned in 2022-2023 5.0 .0 1.0 ▪ 7 facilities closed; 4 converting lines moved to remaining operations .0 2.0 .0 ▪
Slide 16: Recent Strategic Actions Transforming the Business
Recent Strategic Actions Transforming the Business Portfolio Transformation Over Time Key Capital Investments 2020 (Sales) 2024 (Sales) Spend by Segment (2020-2024) Key Investments Other, 2% Other, 3% Packaging Corporate, Recovery Containerboard ▪ Bear Island mill Boxboard Products & Recycling Tissu
Slide 17: Tariff Exposure Mitigated by Key Actions
Tariff Exposure Mitigated by Key Actions Tariff Exposure Mitigating Actions Potential Areas of Exposure ▪ Select product reallocations between the U.S. and Canada to minimize shipping between countries 15% ▪ Finished products produced in Canada and sold in the U.S. (represents ~11% of total sales) ▪
Slide 18: Strategic Priority Areas: 2025 – 2026
Strategic Priority Areas: 2025 – 2026 (C$) STRENGTHEN OUR CULTURE OF EXCELLENCE 1 ▪ Productivity led margin improvements; the right product for the right customer on the right equipment to drive productivity and profitability levels ▪ Optimized logistics and cost structure, supported by rigorous ope
Slide 19: Containerboard − Market Overview
Containerboard − Market Overview Market Share North American Capacity & Utilization Rate 3,000 Forecast Other 23% 94% 95% 94% 94% 28% 92% 92% 94% 92% 91% 2,000 89% 87% 4% 5% 1,000 9% 19% 0 12% (1,000) Market Share Composition Top 5 73.3% (2,000) Next 5 13.5% (3,000) 2019 2020 2021 2022 2023 2024 202
Slide 20: Index List Prices
Index List Prices Recycled Fibre Costs − US$ / short ton 300 HIGHLIGHTS White grades (Basket of products) Brown grades (OCC) 250 ▪ Brown corrugated cardboard (OCC no. 11) prices were kept stable in 2025 Q1 due to 200 softer demand levels despite low supply 150 ▪ In 2025 Q1, increased demand and lowe
Slide 21: Financial Overview
Financial Overview Investor Presentation 21 21
Slide 22: Key Consolidated Metrics – L5Y (I)
Key Consolidated Metrics – L5Y (I) (C$M) Sales Net Debt / LTM EBITDA (A) , 5.2x , 01 , .2x .2x , .5x . x ,105 2.5x , 5 2020 2021 2022 202 202 T Q1 2025 2020 2021 2022 202 202 T Q1 2025 EBITDA (A) & EBITDA (A) Margin Interest Coverage Ratio T BIT A (A) BIT A (A) Sales ( ) 00 1 0.15 00 12 . x 11 11 00
Slide 23: Key Consolidated Metrics (II)
Key Consolidated Metrics (II) (C$M) Q1 2025 Metrics FY2024 FY2023 Q1 2025 Q1 2024 (LTM) Sales $4,746 $4,701 $4,638 $1,154 $1,109 Operating Income (loss) $136 $95 $40 $50 $9 EBITDA (A) $523 $501 $558 $125 $103 Margin (EBITDA (A)/Sales) 11.0% 10.7% 12.0% 10.8% 9.3% Net debt $2,216 $2,096 $1,882 $2,216
Slide 24: Overview of Consolidated Profitability Drivers
Overview of Consolidated Profitability Drivers (C$M) H1 2024 H2 2024 FY 2024 Q1 2025 Consolidated EBITDA (A) vs vs vs vs Variation Drivers H1 2023 H2 2023 FY 2023 Q1 2024 Pricing ($89) $50 ($39) $47 Freight & Production Costs $10 $20 $30 ($15) Volume & Mix, FX & Others $36 ($25) $11 ($10) Raw Materi
Slide 25: New Capital Investments
New Capital Investments (C$M, excluding new leases, disposal of assets and accounts payable variation) Corporate, ecycling ecovery Key Highlights Tissue Papers $5 2 ▪ Bear Island investments are Packaging Products complete 1 ▪ New capital investments expected to be below $200M through the end of FY2
Slide 26: Appendix
Appendix Investor Presentation 26 26
Slide 27: EBITDA (A) Reconciliation
EBITDA (A) Reconciliation (C$M) LTM FY2020 FY2021 FY2022 FY2023 FY2024 F1Q 2025 F1Q 2024 F1Q 2025 Operating Income (Loss) C$292 C$50 C$33 C$40 C$95 C$136 C$50 C$9 Depreciation and Amortization 251 252 252 272 282 284 69 67 Loss (Gain) on Acquisitions, (43) (40) - - - - - - Disposals and Others Impai
Slide 28: Sensitivities
Sensitivities1 SHIPMENTS / EBITDA (A) CONSUMPTION IMPACT (‘000 s.t, ‘000 mm Btu for Natural Gas) INCREASE (Annually, CAN$ M) SELLING PRICE2 (Manufacturing & Converting) PACKAGING Linerboard, 42-lbs unbleached kraft, Eastern US 450 US$25/s.t. 16 Corrugated Medium, 26-lbs semichemical, Eastern US 365
Slide 29: Thank You
Thank You www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investor@cascades.com