Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Q1 2023 Earnings Presentation
20 slides from Greenfirst Forest Products's earnings presentation, May 16, 2023
Slide 1: Q1 2023 Investor Presentation
Q1 2023 Investor Presentation May 16, 2023
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: Presenters
Presenters 3 Paul Rivett Alfred Colas Michel Lessard Gwen Webster Interim CEO CFO President Chief of Staff and Chairman
Slide 4: Overview
OVERVIEW GREENFIRST
Slide 5: First Quarter Highlights
First Quarter Highlights 5 § Sold Quebec operations for approximately $94 million, subject to final adjustments § Improved productivity at our remaining sawmills and paper mill § Executed letter of intent to sell approximately 30 of the 118 acres of Kenora land to a regional institution for $8 milli
Slide 6: Q1'23 Overview
Q1'23 Overview 6 Results from continuing operations Q1 Net (Loss) Earnings Q1 - $(20.2) million / Diluted EPS $(0.11) Q1 EBITDA and Adjusted EBITDA Q1 - $(14.9) million / $(15.2) million Trends - Pricing, Volumes, Interest rates CAD Lumber Prices realized in Q1’23 - $605/Mfbm Lumber Volumes sold in
Slide 7: Outlook – Pricing and Costs
Outlook – Pricing and Costs 7 § Near-term demand shows volatility, however, longer-term fundamentals for lumber demand remain favourable § Majority of US Builders are projecting growth expectations in the back half of 2023 § Some price support may come from curtailments in BC and other regions of No
Slide 8: Lumber Pricing – random lengths (great lakes)
Lumber Pricing – random lengths (great lakes) 8 In U.S dollars GL Prices record high established As of May 4, 2023 $445 Forecast 2023 $498 Actual Outlook Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2023 2024 ■ Note: Outlook is based on weekly forecast 4 May 2023
Slide 9: U.S Housing Starts Forecast
U.S Housing Starts Forecast 9
Slide 10: Financials
FINANCIALS GREENFIRST
Slide 11: Q1'23 Financial Highlights - P&L
Q1’23 Financial Highlights - P&L 11 In thousands of Canadian Dollars (3) § Lumber sales reflect lower prices and sales volumes compared to Q4 2022 § Paper sales growth on increasing efficiency and output of the second paper machine 1 Certain prior period amounts have been restated as a result of the
Slide 12: Q1'23 Financial Highlights – Adjusted EBITDA
Q1’23 Financial Highlights – Adjusted EBITDA 12 In thousands of Canadian Dollars 1 Certain prior period amounts have been restated as a result of the Company finalizing its purchase price accounting related to the Rayonier Asset Acquisition, as allowed under IFRS. Please refer to Note 4 - Acquisitio
Slide 13: Debt and Liquidity
Debt and Liquidity 13 In thousands of Canadian Dollars 1 Total debt outstanding consists of the carrying amounts of the Company’s credit facilities. § The Company repaid $19 million in Q1 2023, and $30 million in the preceding quarter, with total debt balance of $34.5 million at April 1, 2023. A fur
Slide 14: Prudent Financial Management
Prudent Financial Management 14 In thousands of Canadian Dollars § The credit facilities are no longer subject to a minimum FCCR ratio covenant, after repayment of term loan during Q1 2023 § Outstanding letters of credit reduce the borrowing base § April 1 $5.4m versus prior year (March 26, 2022) $1
Slide 15: Operations
OPERATIONS GREENFIRST
Slide 16: Operational Update
Operational Update 16 Paper mill § Paper production and shipments increased in Q1’23 vs. Q4’22 § Continued efficiency gains on both paper machines; more productivity gains expected Sawmills § Lumber shipments decreased in Q1’23 vs. Q4’22 § Lumber production increased in Q1’23 vs. Q4'22 § Completing
Slide 17: Strategic CAPEX
Strategic CAPEX 17 New kiln under construction in Cochrane, ON – April 2023 17
Slide 18: Annual Lumber Production Capacity
Annual Lumber Production Capacity 18 100% Canadian Sawmills Annual Production Capacity (mfbm) Chapleau 135,000 Cochrane 160,000 Hearst 110,000 Kapuskasing 105,000 Total Sawmills 510,000 Paper Mill Annual Production Capacity (MT) Kapuskasing 205,000
Slide 19: Deeply Committed to Sustainability
Deeply Committed to Sustainability 19 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
Slide 20: Thank You
PRODUITS FORESTIERS GREENFIRST FOREST PRODUCTS
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