Cascades Inc. · TSX:CAS
Cascades — Investor Presentation (June 2025)
29 slides from Cascades's investor presentation, June 2025
Slide 1: Investor Presentation June 2025
1 Investor Presentation June 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: 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 4: Investment Thesis
INVESTMENT THESIS • Modernized and well-positioned asset base equipped to drive value for customers & shareholders • Strong sustainability track record • Bear Island 100% recycled lightweight containerboard mill (Virginia, US) • Agile & aligned go-to market approach 4
Slide 5: Sustainability Action Plan 2021-2025
Sustainability Action Plan 2021-2025* Ambitious targets, a robust action plan, GHG reduction targets have been approved by the Science Based Targets initiative (SBTi). Climate Change 38.7% IN 2030 VS 2019 27.5% IN 2030 VS 2019 22% IN 2030 VS 2019 Respectful scopes 1 + 2, mills (kg of CO2 scopes 1 +
Slide 6: Company Overview
COMPANY OVERVIEW PACKAGING PRODUCTS TISSUE PAPERS ▪ Leading containerboard producer in Canada ▪ Leading tissue paper producer in Canada MARKET ▪ #6 producer in North America ▪ #7 producer in North America ▪ Diversified offering: consumer & industrial solutions ▪ Annual capacity: 445,00 s.t., ~70 M c
Slide 7: Market Overview
Market Overview N.A. Containerboard Market Share1 Capacity Share of N.A. Tissue Suppliers (2024)3 (2024 annual industry capacity = 44.68 M s.t.) (2024 annual industry capacity = 9.8 million tonnes) Others Other Irving 10.7% GP 23% Top 5 73.3% 4.2% 27.1% 28% Kruger 5.0% 4% Next 5 13.5% Cascades 5% 5.
Slide 8: Diversified N.A. Operational Platform
DIVERSIFIED N.A. OPERATIONAL PLATFORM Kingsey Falls, QC Packaging 9 ▪ 7 mills producing linerboard, corrugated 3 medium and uncoated recycled board (URB) ▪ 32 packaging manufacturing plants ▪ 4 Distribution Centers 4 9 Tissue Papers ▪ 10 Facilities ‒ 5 in Manufacturing & Converting ‒ 2 in Manufactur
Slide 9: Financial Results
Financial Results 9
Slide 10: Financial Performance
Financial Performance Sales (M CAN$) Free Cash Flow2 4,701 4,746 8.9% 4,638 8.5% 4,466 7.2% 4,105 5.1% 3,956 4.7% 413 348 340 204 210 2020 2021 2022 2023 2024 LTM Q1 2025 2020 2021 2022 2023 2024 Free Cash Flow (M CAN$) Free Cash Flow/Sales (%) EBITDA (A)1 & Margin Earnings and Adjusted Earnings/Com
Slide 11: Summary of Financial Results
Summary of Financial Results (in millions of CAN$, except per share amounts) Q1 Q4 Q1 2024 LTM 2025 2024 2024 Sales 4,701 4,746 1,154 1,211 1,109 Operating Income (loss) 95 136 50 16 9 EBITDA (A)1 501 523 125 146 103 Margin (EBITDA (A)1/Sales) 10.7% 11.0% 10.8% 12.1% 9.3% Net earnings (loss) (31) (4
Slide 12: Overview of Consolidated Profitability Drivers
Overview of Consolidated Profitability Drivers (in millions of CAN$) Consolidated EBITDA (A)1 Variation Q1 2025 vs Q4 2024 Q1 2025 vs Q1 2024 2024 vs 2023 (M CAN$) Average Selling Prices $9 million $47 million ($39) million Operating Costs ($21) million ($10) million $30 million Volume & Mix ($27) m
Slide 13: Recycled Fibre Costs – Index Prices
Recycled Fibre Costs – Index Prices (US$/s.t.) OCC: Current (May-25) • Despite lower seasonal generation levels of OCC in February, softer demand levels kept the index pricing stable throughout Q1 • Lower OCC published index prices in May (-$5 to -$10, 1431 depending on region) 73 SOP: • Higher dema
Slide 14: Virgin Fibre Costs – Index List Prices
Virgin Fibre Costs – Index List Prices (US$/metric ton) Current VIRGIN PULP : (May-25) • Tariff threat on Canadian NBSK & NBHK lead to stronger 1,835 demand from US customers, and price increases. NBSK Market/maintenance downtime of ~700t of BEK (Eucalyptus) lead to marginal price increase 1,330 • N
Slide 15: Packaging Segment
Packaging Segment Sales by Product Category1 Sales by Country ▪ Vertically integrated, Canadian leader in sustainable packaging solutions 17% Corrugated ▪ One of Canada’s leading containerboard 41% 28% 55% Paper Rolls Canada producers and 6th largest in North 59% Other US America ▪ Manufactures cont
Slide 16: Packaging Segment - Performance
Packaging Segment - Performance ▪ Growth supported by targeted investments and realignment of EBITDA (A)1 (M CAN$) & Margin (%) operational platform ▪ Competitive geographic footprint across North America 19.5% 17.7% 17.1% 16.7% 13.6% 14.5% ▪ Internal and external expertise on site at strategic Bear
Slide 17: Tissue Papers
Tissue Papers Sales by Product Sales by Country Converting Capacity Converted Product Category (Q1 2025) (Q1 2025) by Country (2024) Cases Sold (2024) 2% 35% 63% 33% 52% 48% 49% 51% 67% Retail Canada Canada Retail Away-from-Home US US Away-from-Home Parent Rolls 17
Slide 18: Tissue Papers – Performance
Tissue Papers – Performance EBITDA (A)1 (M CAN$) & MARGIN (%) ▪ One of Canada’s leading tissue producers ▪ 7th largest producer in North America 11% 2% nmf 11% 12% 12% ▪ Manufacturer of tissue paper rolls and converted finished 192 products for the industrial and retail markets 175 182 179 ▪ Wide ra
Slide 19: Strategic Priority Areas: 2025 - 2026
STRATEGIC PRIORITY AREAS: 2025 - 2026 CULTURE OF CAPITAL ALIGNMENT EXCELLENCE DEPLOYMENT • Productivity led margin • Simplification of operational • Maintain capital expenditures improvements and organization structure <$200M ($175 M in 2025) • Optimize logistics and cost • Monetization of redundant
Slide 20: Outlook: Q2 EBITDA (A) Trends vs. Q1 2025
OUTLOOK: Q2 EBITDA (A)1 TRENDS vs. Q1 2025 • Favourable raw material costs • Higher selling prices PACKAGING +5% - +10% • Temporary production limitations in Niagara Falls due to 3rd party steam supplier mechanical issues • Stronger volume trends TISSUE +5% - +10% • Higher raw material costs • Highe
Slide 21: Capital Investments
Capital Investments (in property, plant & equipment, in millions of CAN dollars, excluding new leases, disposal of assets and accounts payable variation) Strategic investments have transformed our operational platform. 532 36 41 330 26 289 50 32 213 35 455 22 148 ~ 175 85 254 30 222 44 106 24 74 202
Slide 22: Financial Ratios & Debt Maturities
Financial Ratios & Debt Maturities Net Debt / Adjusted EBITDA (A)1,3 Interest Coverage Ratio2,3 5.2x 6.7x 4.2x 4.2x 6.0x 3.25x 3.5x 3.4x 4.6x 4.9x 2.5x 4.5x 3.6x 3.8x 2019 2020 2021 2022 2023 2024 LTM Q1 2025 2019 2020 2021 2022 2023 2024 Q1 2025 Net Debt / Net Debt + Total Equity1 Long-Term Debt Ma
Slide 23: Appendices
APPENDICES 23
Slide 24: Quarterly Financial Results & KPIs
Quarterly Financial Results & KPIs 2022 2023 2024 2025 (In millions of CAN$, except per common share amounts, where noted) Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Financial Results Sales 4,466 1,134 1,168 1,198 1,138 4,638 1,109 1,180 1,201 1,211 4,701 1,154 Operating income (loss) 33 (80) 64 80 (
Slide 25: Cash Flow Overview
Cash Flow Overview 2023 2024 2025 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 YEAR Q1 Q2 Q3 Q4 YEAR Q1 Cash flow from operations 89 117 100 91 397 32 78 76 109 295 45 Specific items1 1 5 6 12 24 14 17 10 20 61 17 Adjusted cash flow from operations2 90 122 106 103 421 46 95 86
Slide 26: Historical COGS and SG&A Overview
Historical COGS and SG&A Overview COST OF SALES 2023 2024 2025 (In millions of CAN$) Q1 Q2 Q3 Q4 YEAR Q1 Q2 Q3 Q4 YEAR Q1 Raw materials 365 396 419 395 1,570 377 431 448 434 1,690 379 Wages & benefits 193 194 192 180 773 194 198 190 200 782 205 Energy 63 58 57 60 231 54 51 51 54 210 65 Delivery 135
Slide 27: Historical Reference Prices and Fibre Costs
Historical Reference Prices and Fibre Costs Q1 2025 vs Q1 2025 vs 2023 2024 2025 Q1 2024 Q4 2024 These indexes should only be used as an indicator of trends and they may be different US$ US$ than our actual selling prices or purchasing costs. YEAR Q1 Q2 Q3 Q4 YEAR Q1 Change % Change Change % Change
Slide 28: Sensitivities
SHIPMENTS / EBITDA (A)1 SENSITIVITIES2 CONSUMPTION (‘000 s.t, ‘000 mm Btu for Natural Gas) INCREASE IMPACT (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: Investor Relations Contact
www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514.282.2697 / investor@cascades.com