Canfor Corporation · TSX:CFP
Canfor — Canfor Pulp Products — Shareholder Meeting (April 2020)
17 slides from Canfor's shareholder meeting presentation, Apr 23, 2020
Slide 1: Canfor Pulp Products Inc. Annual General Meeting
Canfor Pulp Products Inc. Annual General Meeting, April 23, 2020 12:30 p.m. Pacific Instructions: 1. This is a listen only event 2. Please mute your audio line 3. Please turn off your video 4. The Canfor Corporation AGM will begin promptly at 1:00 p.m., please stay on the line if you wish to partici
Slide 2: CEO Report
CEO Report This meeting is being virtually broadcast from the unceded territory of the Coast Salish peoples, including the territories of the Musqueam, Squamish, and Tsleil-Waututh Nations 2
Slide 3: Board Changes
Board Changes We look forward to having Dieter Jentsch join the board – his global experience will be an asset to Canfor Pulp. Dieter Jentsch 3
Slide 4: The Canfor Pulp Team
The Canfor Pulp Team It’s through their hard work that we On behalf of the management team and consistently deliver high quality pulp our board of directors, a heartfelt thanks and paper products to our customers to all our employees 4
Slide 5: Financial Overview
Financial Overview 2019 was challenging due to weak global pulp markets, escalating fibre costs and reduced supply. Operating Loss ($31) million for 2019 Quarterly Dividend for 2019 $16.4 million returned to shareholders 5
Slide 6: 2019 Pulp Markets
2019 Pulp Markets • Global pulp inventory remained high Global pulp prices fell sharply over the course of the year as purchasing • In Europe, activity in China declined demand for and markets elsewhere printing and also weakened. writing papers fell significantly 6
Slide 7: Pulp Mill Curtailments
Pulp Mill Curtailments The shrinking fibre supply in the province is due to sawmill curtailments that resulted in significantly reduced chip residuals and caused major disruptions to our pulp mill operations. As a result, we took phased curtailments at our pulp mills over the summer of 2019 7
Slide 8: Update on Major Projects
Update on Major Projects Our energy business increased its We implemented a new The system is improving power generation following the ramp-up Enterprise Resource alignment and integration of Northwood Pulp Mill’s new 32-megawatt Planning software between customer orders condensing turbo generator s
Slide 9: Q1 2020 Financial Results
Q1 2020 Financial Results Canfor Pulp had an operating income of $6.1 million. The results reflect higher production and a corresponding decline in operating costs, which helped mitigate the impacts of the COVID-19 pandemic in the latter half of the quarter. 9
Slide 10: Looking Forward
Looking Forward Containment measures across It’s difficult to predict how Global softwood pulp demand Western Europe and North demand and pricing will be is currently projected to be America are forecast to weigh on impacted going forward solid through the second market demand for printing and quart
Slide 11: COVID-19 Response
COVID-19 Response Our top two priorities are 1. Protecting the health of our employees 2. Executing on our strategy to sustain the business for the long term We implemented a COVID-19 action plan, which continues to evolve. 11
Slide 12: COVID-19 Impacts on the Business
COVID-19 Impacts on the Business The pulp and paper industry has been deemed an essential service in BC. Extended sawmill curtailments in BC, which could result in lower volumes of residual chips, may create additional downtime for Canfor Pulp and across the industry. This continues to be a very flu
Slide 13: Reduced Capital Spending
Reduced Capital Spending Capital spending is estimated to be We have also implemented $25 million, which is $55 million less hiring and salary freezes than in 2019 13
Slide 14: Developing the Path Forward
Developing the Path Forward We’re starting to give more thought to what our business will look like in the future. Our priority today remains ensuring a stable operating environment in this uncertain world. 14
Slide 15: New Senior Leadership
New Senior Leadership Kevin Anderson recently joined Canfor Pulp as the Vice President of Operations We’re very pleased to have Kevin on board. 15
Slide 16: Thank You
Thank You 16
Slide 17: Shareholder Questions
Shareholder Questions 17
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