Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Q2 2023 Earnings Presentation
20 slides from Greenfirst Forest Products's earnings presentation, Aug 10, 2023
Slide 1: Investor Presentation
August 10, 2023 Investor Presentation
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 le GREENFIRST
Slide 5: Second Quarter Highlights
Second Quarter Highlights 5 § Softwood lumber duties rate reduced from 20.23% to 7.99% § Overpayment of duties in comparison to our peers reached US$21M § Consistent improvement at the paper mill § Lumber prices showed momentum, with demand also favourable § Saving over $500K in financing costs from
Slide 6: Q2'23 Overview
Q2'23 Overview 6 Results from continuing operations Q2 Net Loss Q2 - $(9.7) million / Diluted EPS $(0.05) Q2 EBITDA and Adjusted EBITDA Q2 - $(5.0) million / $(5.0) million Trends - Pricing, Volumes CAD Lumber Prices realized in Q2’23 - $596/Mfbm Lumber Volumes sold in Q2’23 - 110.3 MMfbm Lumber pri
Slide 7: Outlook – Pricing and Costs
Outlook – Pricing and Costs 7 § Lumber pricing showed upward trend in June 2023 with signs of stabilizing remainder of the year § US Builders project growth expectations in the second half of 2023 § Higher demand for new builds in US § Record levels of immigration is expected to drive demand for new
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 July 27, 2023 $445 Forecast 2023 $498 Actual Outlook Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2023 ■ Note: Outlook is based on weekly forecast 27 July 2023
Slide 9: U.S Housing Starts Forecast
U.S Housing Starts Forecast 9 Source: FEA
Slide 10: Financials
FINANCIALS le GREENFIRST
Slide 11: Q2'23 Financial Highlights - P&L
Q2’23 Financial Highlights - P&L 11 In thousands of Canadian Dollars § Lumber sales reflect lower prices compared to Q2 2022 § Paper sales growth on increasing efficiency and output of the second paper machine compared to Q2 2022 1 Certain prior period amounts have been restated as a result of the C
Slide 12: Q2'23 Financial Highlights – Adjusted EBITDA
Q2’23 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 $10 million in Q2 2023, $19 million in Q1 and $30 million in Q4 2022, with total debt balance of $24.5 million at July 1, 2023. A
Slide 14: Prudent Financial Management
Prudent Financial Management 14 In thousands of Canadian Dollars § Well managed debt and interest expense § Overfunded pension assets of over $20 million, protected from some of the volatility in 2022 which preserved asset surpluses § Driving operating and SG&A cost reductions while maintaining a pr
Slide 15: Operations
OPERATIONS GREENFIRST
Slide 16: Operational Update
Operational Update 16 Sawmills § Lumber shipments increased in Q2'23 vs. Q1'23 § Lumber sales increased 20% in Q2’23 vs. Q1’23 § Lumber shipments are forecasted to be in line with production levels for the Q3’23 § Sawmill production decreased in Q2’23 vs. Q1’23 due to planned shutdowns Paper mill §
Slide 17: Strategic CAPEX
Strategic CAPEX 17 New kiln under construction in Hearst, ON – July 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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