Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Q3 2022 Earnings Presentation
16 slides from Greenfirst Forest Products's earnings presentation, Nov 9, 2022
Slide 1: Q3'22 Investor Presentation
Q3'22 Investor Presentation November 9, 2022
Slide 2: Legal Disclaimer
Legal 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 f
Slide 3: Strong Team with Forestry Expertise
Strong Team with Forestry Expertise 3 Rick Doman Alfred Colas Michel Lessard CEO and Director CFO President Senior Leadership Team Mathieu Brière, Vice President, Sales and Marketing John Shelley Chief Information Officer Darren Ethier, Vice President, Forestry Operations Geneviève Labrecque Chief F
Slide 4: Overview
OVERVIEW GREENFIRST
Slide 5: Key Achievements During First Year of Operations
Key Achievements During First Year of Operations 5 § Successfully integrated six sawmills and one paper mill § Team of approx. 1,500 people; successfully hired for key positions in a challenging labour market § Established corporate presence in the growing community of North Bay § On way to build a
Slide 6: Q3'22 Overview
Q3'22 Overview 6 Q3 Net (Loss) Earnings QTD - $(23.3) million / Diluted EPS $(0.13) YTD - $42.7 million / Diluted EPS $0.22 Q3 EBITDA and Adjusted EBITDA QTD - $(29.7) million / $(7.9) million YTD - $67.5 million / $91.3 million Trends - Pricing, Volumes, Inflation US Lumber Prices for 2&better in Q
Slide 7: Outlook – Pricing and Costs
Outlook – Pricing and Costs 7 • North American lumber prices are expected to remain volatile • Inflation and rapidly increasing interest rates having a negative impact on lumber markets • Field inventories are at record lows with the negative economic forecast • Tightening supply due to world events
Slide 8: Lumber Prices Random Lengths (Great Lakes in $US)
Lumber Prices Random Lengths (Great Lakes in $US) 8 Lumber prices are the primary driver of EBITDA 8
Slide 9: Financials
FINANCIALS GREENFIRST
Slide 10: Q3'22 Financial Highlights - P&L
Q3'22 Financial Highlights - P&L 10 In thousands of Canadian Dollars, except per share amounts September 24, June 25, September 25, For the quarter ended 2022 2022 2021 Net sales Forest products(1) $ 127,397 $ 191,828 $ 22,796 Paper products 26,027 22,736 6,132 Total net sales 153,424 214,564 28,928
Slide 11: Liquidity
Liquidity 11 In thousands of Canadian Dollars Liquidity Breakdown Q3'22 Q2'22 Q1'22 Cash Balance $ 29,896 $ 74,199 $ 39,058 Change in cash balance (quarter over quarter) (44,303) 35,141 2,885 Repayments of debt 120,303 12,788 — Borrowings under credit facility 84,000 — — Total debt outstanding(1) 83
Slide 12: Operations
OPERATIONS GREENFIRST
Slide 13: Operational Update
Operational Update 13 • Lumber shipments increased slightly in Q3'22 vs. Q2'22 • Paper shipments increased in Q3'22 vs. Q2'22 due to higher production from the restart of the second paper machine • The second paper machine expected to reach full production capacity in Q4'22 • Despite improvements in
Slide 14: Developments
Developments 14 Private Forest Lands Kenora Waterfront Relocation of Kenora Property Sawmill Equipment GreenFirst monetized its GreenFirst owns 114 acres Evaluating a proposal by the 203,000 acres of private and a 4 acre island of prime Ontario Government to rebuild forest land located south of lake
Slide 15: 100% Canadian
Annual Lumber Production Capacity 15 100% Canadian Sawmills Annual Production Capacity (mfbm) Chapleau 135,000 Cochrane 160,000 Québec Hearst 110,000 Kapuskasing 105,000 Kenora1 150,000 Ontario La Sarre 135,000 Kapuskasing Béarn 110,000 Hearst La Sarre Total Sawmills 905,000 Kenora Cochrane Béarn Ch
Slide 16: Deeply Committed to Sustainability
Deeply Committed to Sustainability 16 GreenFirst is dedicated to maintaining high standards of sustainability across our business practices § Wood stores carbon and is the only renewable major building material Green § Lumber building materials require less energy to produce and transport than Advan
GreenFirst Forest Products — Q3 2022 Earnings Presentation on 6ix