Kp Tissue, Inc. · TSX:KPT
Kp Tissue — Shareholder Meeting (June 2024)
21 slides from Kp Tissue's shareholder meeting presentation, Jun 11, 2024
Slide 1: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS June 11, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation about KPT's and Kruger Products’ current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements.
Slide 3: Agenda
AGENDA • Opening Remarks and Introduction o For technical issues contact: tsxtvgminfo@tmx.com • Call Meeting to Order, Appoint Secretary and Scrutineer • Formal Business of Meeting • Notice of Meeting, Quorum • Presentation of the 2023 Financial Statements and Auditors’ Report • Election of Director
Slide 4: Dino Bianco, Chief Executive Officer
DI NO BI ANC O CHIEF EXECUTIVE OFFICER 4
Slide 5: Our Vision
OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA. 4/4 || . Bonterra r MAKING EVERYDAY LIFE MORE COMFORTABLE. s @KP
Slide 6: 5 Underlying Strategies
5 UNDERLYING STRATEGIES Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 Consumer As Our Expand Our End-to-End Supply Deliver Winning Team & Compass Business Footprint Chain Excellence Sustainability Culture 6
Slide 7: Corporate Highlights — 2023
CORPORATE HIGHLIGHTS —2023 • Reported record revenue of $1.9B and record Adjusted EBITDA (1) of $238.6M • Gained market share in facial tissue and paper towel categories within Consumer segment, while improving share trend in bathroom tissue • Captured additional share in facial tissue due to compet
Slide 8: Strong Historical Track Record
STRONG HISTORICAL TRACK RECORD Revenue Adjusted EBITDA(1) and Net Income (Loss) Adjusted EBITDA Margin(1) 1,873 13.0% 1,681 238.6 12.7% 42.0 250 .0 1,516 1,465 1,434 10.1% 10.5% 27.3 197.8 200 .0 153.4 2.1 150 .0 145.0 6.9% 2019 2020 2021 2022 2023 116.0 -5.3 (in C$ millions) 100 .0 50. 0 -56.9 0.0
Slide 9: Revenue Split for 2023
REVENUE SPLIT FOR 2023 By Geography 57% 43% Canada U.S. 7.4% 17.1% Canada U.S. By Segment 11.3% 12.0% Consumer AFH 83% 17% Consumer AFH 11.4% Total Revenue 9
Slide 10: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS Revenue Adjusted EBITDA(1) Net Income $479.4 M $67.1 M $9.0 M 6.3% 34.3% $58.3 M over Q1 2023 over Q1 2023 over Q1 2023 +2.1% +12.1% Revenue Canada Revenue U.S. (1) Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. 10
Slide 11: Market Leadership
MARKET LEADERSHIP Recovering share following high inflationary period (1) Source: Nielsen. Dollar market share for the 52-week period ended March 23, 2024. 11
Slide 12: Brand Support
BRAND SUPPORT • Strong Q1 2024 brand support to drive awareness and share • Multi-brand activities focused on Unapologetically Human “Love is Messy” campaign, 43rd Scotties Tournament of Hearts and Kruger Big Assist program • Additional targeted media behind Bonterra in support of incremental custom
Slide 13: Away-From-Home
AWAY-FROM-HOME • Sustained recovery in AFH with robust EBITDA results in first quarter that improved over Q1 2023 and Q4 2023 • Volume increased in Q1 2024 from same period in 2023, but decreased sequentially due to seasonality • AFH asset performance continues to progress and support growth in dema
Slide 14: Sherbrooke Expansion Project
SHERBROOKE EXPANSION PROJECT • Bathroom tissue line surpassing expectations after launch in February 2023 • New facial tissue line, which started up in February 2024, ramping to plan and producing high-quality products • Paper machine construction progressing well and expected to start production in
Slide 15: Other Manufacturing Sites
OTHER MANUFACTURING SITES • New facial line in Gatineau supplementing Sherbrooke’s facial capacity to meet North American demand • TAD paper machine production continues to improve year-over-year in Memphis • Converting production in Memphis also progressing with investments in operations and mainte
Slide 16: Balance Sheet
BALANCE SHEET (Million CAD$, unless otherwise noted) Q1 2024 Q4 2023 Q1 2023 Cash 117.1 135.7 36.9 Current Portion of Long-term Debt 41.1 35.2 34.4 Long-term Debt 1,105.0 1,034.0 1,096.1 Net Debt 1,029.0 933.5 1,093.6 LTM Adjusted EBITDA1 255.7 238.6 136.9 Net Debt/LTM Adjusted EBITDA1 4.0x 3.9x 8.0
Slide 17: 2023 Awards
2023 AWARDS S BEST oF MANAGED SCOMPANIES Canada's Best Managed Companies for 6" consecutive year, Gold Member Women In Governance, Bronze Level Parity Certification &BEST 50: ‘CANADA'S BEST CORPORATE CITIZENS. Corporate Knights’ Best 50 Corporate Citizens in Canada for 6" consecutive year IMPACT CAN
Slide 18: Sustainability Focus
S U S TA I N A B I L I T Y F O C U S KEY TARGETS TO ACHIEVE BY 2030 18
Slide 19: Looking Ahead to 2024
LOOKING AHEAD TO 2024 • Managing margins amid rising costs • Continuing to invest in our brands • Growing our facial tissue position • Implementing successful start-up of Sherbrooke Expansion Project 19
Slide 20: KP Tissue Inc.
_ @KP 2 2] KP Tissue Inc 2 0 0 ie ‘ ms | f = sts 4 a 7 22362282 + Be paeee, rH} a +4 eeaeaee ans Ht aeaes 1038 == NS WWW.KPTISSUEINC.COM
Slide 21: www.kptissueinc.com
WWW.KPTISSUEINC.COM