GreenFirst Forest Products Inc · TSX:GFP
GreenFirst Forest Products — Shareholder Meeting (June 2022)
25 slides from GreenFirst Forest Products's shareholder meeting presentation, Jun 16, 2022
Slide 1: AGM Presentation June 16, 2022
AGM Presentation June 16, 2022
Slide 2: Disclaimer
DISCLAIMER 2 “This Presentation is being provided to you by GreenFirst Forest Products Inc. (“GreenFirst” or the “Company”) for informational purposes only. Cautionary Note Regarding Forward-Looking Information This Presentation includes information, statements, beliefs and opinions which are forwar
Slide 3: Presenters
PRESENTERS 3 Paul Rivett Rick Doman Alfred Colas Michel Lessard Chairman CEO and Director CFO President Senior Leadership Team Mathieu Brière, Vice President, Sales and Marketing John Shelley Darren Ethier, Vice President, Forestry Operations Chief Information Officer André Ouimette, Vice President,
Slide 4: Overview
OVERVIEW 4 ■ GreenFirst owns seven sawmills and one paper mill across Ontario and Quebec ► On August 28, 2021, completed the acquisition of 6 sawmills and 1 paper mill including other assets and private land ► Prior to this, the Company owned 1 idle sawmill in Kenora ■ GreenFirst employs ~1,500 peop
Slide 5: Annual Lumber Production Capacity
ANNUAL LUMBER PRODUCTION CAPACITY 5 Sawmills Québec Annual Production Capacity (mfbm) Chapleau 135,000 Cochrane 160,000 Ontario Kapuskasing Hearst 110,000 Kapuskasing 105,000 Hearst Kenora1 150,000 La Sarre La Sarre 135,000 Kenora Cochrane Béarn 110,000 Béarn Chapleau Total Sawmills 905,000 Paper Mi
Slide 6: Investment Opportunity
INVESTMENT OPPORTUNITY 6 strong compelling renewable robust MANAGEMENT VALUE RESOURCE GROWTH Led by Forestry Capital allocated Sustainable forest Committed to industry veterans, for operational management unlocking value from accompanied by optimization. practices. non-core assets and a qualified an
Slide 7: Information
I NFORMATION 7 Market capitalization of $297 million as of June 15, 2022 177,572,272 31,752,618 4,766,858 common warrants stock options shares outstanding outstanding outstanding ■ Made the TSXV top 50 2021 before graduating to the main Toronto Stock Exchange on February 10, 2022 ■ 13% of common sha
Slide 8: Financial Highlights (Fiscal 2021)
FINANCIAL HIGHLIGHTS (Fiscal 2021) 8 In thousands of Canadian Dollars 2021* Total net sales 190,479 Operating Income 5,102 Net loss for the period (9,619) Basic and diluted earnings (loss) per share (0.12) Adjusted EBITDA (1) 12,582 *These results include 4 months of operations from the Company’s mi
Slide 9: Segment Revenue (Fiscal 2021)
SEGMENT REVENUE (Fiscal 2021) 9 shipments 17% 13% Paper 83% shipments 47% 87% Forest Products 53% The Company’s softwood lumber sales to US customers are subject to countervailing and antidumping duties of 20.2%, as determined by the US Department of Commerce .CA TSX:GFP
Slide 10: Performance vs Peers
PERFORMANCE vs PEERS 10 $650 $600 BC Interior Average $550 Quebec Average variable cost $500 C$/mfbm $450 Ontario Average $400 $350 $300 GreenFirst GreenFirst Source: FEA Ontario Sawmills Quebec Sawmills ■ GreenFirst Ontario sawmills operated near Ontario average variable cost ■ GreenFirst Quebec sa
Slide 11: Liquidity – Q1 2022
LIQUIDITY – Q1 2022 11 ■ The Company remains fully in compliance with loan debt covenants. ■ Asset backed revolving loan facility of $65.0 million remains undrawn. ■ Voluntary repayment of US$8.9 million related to the term debt in Q2 2022. ■ The Company is committed to further reducing its term deb
Slide 12: Investment Strategy
INVESTMENT STRATEGY 12 Phase one Phase two 36 Months $20 million $40 million Obsolete and unsupported Productivity and recovery systems and equipment lumber Reduce Enhance recovery productivity production costs safety Opportunities ■ $60 million in investments from fiscal 2022 to fiscal 2024 ■ Move
Slide 13: Outlook
OUTLOOK 13 Rising interest rates in response to higher inflation may be dampening lumber demand These economic headwinds caused lumber prices to decline in May 2022 COVID-19 remains a concern through the remainder of 2022 The North American housing sector continues to be in a supply deficit, which u
Slide 14: Lumber Market Update
LUMBER MARKET UPDATE 14 ■ Inflation and rapidly rising interest rates weighting heavily on North American lumber markets ■ 2x4 RL 2Btr Western Base significantly declined $500/mfbm over the last 4 weeks, reaching $555/mfbm on June 9th ■ U.S. Housing Starts still relatively strong at 1.724 million un
Slide 15: Lumber Prices Random Lengths (Great Lakes)
LUMBER PRICES RANDOM LENGTHS (Great Lakes) 15 In U.S dollars new record high established GL Prices Forecast 2022 $945 As of June 2, 2022 $805 uncharted territories Forecast 2023 $635 previous record high Actual Outlook market bottoms out ■ Note: Outlook is based on weekly forecast 2 June 2022 .CA TS
Slide 16: U.S. Housing Starts Forecast
U.S. HOUSING STARTS FORECAST 16 Single-Family Multifamily Projected Average: 1.71 Historical Average: 1.29 U.S. Housing Starts (millions) Source: FEA .CA TSX:GFP
Slide 17: Paper Market
PAPER MARKET 17 On May 15th, 2022, the Company successfully restarted the second paper machine (or “PM#4”) at the Kapuskasing paper mill. PM#4 is currently at 50% capacity and ramping up to 100% later this year. ■ PM#4 is dedicated to Envirosmart™ and Bulky Book grades. This product is growing in de
Slide 18: Newsprint Pricing Forecast
NEWSPRINT PRICING FORECAST 18 US newsprint actual price and forecasts 45gsm, US dollars per tonne US East US West Data source: Fastmarkets estimates .CA TSX:GFP
Slide 19: Sustainability
o u rf o r e s t s .o u r f u t u r e SUSTAINABILITY
Slide 20: Award Winning Team
AWARD WINNING TEAM 20 Recipient of a 2021 FSC® (Forest Stewardship Council®) Leadership Award, an award recognizing uncommon excellence that advances responsible forest management and forest conservation. The award was for maintaining FSC (FSC® – C167905) certification on over 9 million acres (3.8 m
Slide 21: Facilities - 2021
FACILITIES - 2021 21 99% of logs delivered to our sawmills are beneficially utilized 72% Renewable energy consumption company-wide average Sawmills - 74% renewable energy . Paper mill - 71% renewable energy New initiatives in progress: Four sites have wood-fired boilers that are used to recover ener
Slide 22: Caribou Conservation Plans
CARIBOU CONSERVATION PLANS 22 Collaborative approach on Woodland Caribou habitat management is in place on over 4 million hectares of boreal forest in Quebec and Ontario. The team started this journey in 2007, by 2013, the collaboration with indigenous communities, environmental groups, and governme
Slide 23: Community Relationships
COMMUNIT Y RELATIONSHIPS 23 Many Indigenous business supply and service relationships currently in place. Total purchase of good and services from Indigenous partners including timber contracts and forest management services = ~$6.8 million (Sept 2021 - Dec 2021) Pikogan photo credit Marie-Eve Sigou
Slide 24: PX4 Values
PX4 VALUES 24 SAFE AND HEALTHY INTEGRITY INCLUSIVE QUALITY DEVELOPMENT SUSTAINABILITY ONE TEAM ACCOUNTABILITY PEOPLE PRINCIPLES Px4 VALUES PROGRESS PLANET PERFORMANCE RESOURCES EFFICIENCY PARTNERSHIP MINIMIZE FOOTPRINT INNOVATION TRANSPARENCY WE ARE PROUD RESPONSIBLE FORESTRY PRACTICES .CA TSX:GFP
Slide 25: Merci Q&A
25 Merci Q& A o u r f o r e s t s .o u r f u t u r e .CA TSX:GFP
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