Slide 1: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS May 14, 2025
Slide 2: Forward-Looking Statements
F O R W A R D - LO O K I N G S TAT E M E N T S 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
Slide 3: Corporate Structure
C O R P O R AT E S T RU C T U R E 100% 1 87.7% 12.3% 1As of May 14, 2025 3
Slide 4: Our Vision
OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA. re (shmere © Sponge Towels MAKING EVERYDAY LIFE MORE COMFORTABLE. Bai Bonterra
Slide 5: Underlying Strategies
5 U N D E R LY I N G S T R AT E G I E S 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 5
Slide 6: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Income $546.1M $75.8M $15.4M 13.9% 12.9% $6.4M over Q1 2024 over Q1 2024 over Q1 2024 $20.4M $46.3M over Q1 2024 over Q1 2024 +7.6% +21.7% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most compa
Slide 7: Pulp Input Prices
PULP INPUT PRICES Q1 2025 NBSK average prices1 in CAD increased 6.6%, while BEK average prices1 were up 1.2% from Q4 2024. Q1 2025 NBSK average prices1 in CAD grew 29.5% and BEK average prices1 rose 10.5% year-over-year. Market pulp prices2 increased significantly in Q1 2025 and industry analysts ex
Slide 8: Operations
OPERATIONS • Production rates exceeded forecasts in Q1 2025 • North American demand remains strong • New LDC paper machine and facial converting assets surpassing start-up expectations • TAD paper machine and converting output remains strong year-over-year • Production increases expected for rest of
Slide 9: Focused Brand Support
FOCUSED BRAND SUPPORT • Continued focus on Made In Canada positioning across all trademark brands • Investments behind brand-specific campaigns for Bonterra, Scotties and SpongeTowels, both TV and digital to drive top-of-mind awareness • Launch of new Bonterra “Driving Good Together” contest in part
Slide 10: Brand Leadership Position
BRAND LEADERSHIP POSITION1 Bathroom Tissue Facial Tissue Paper Towel #1 #1 #2 32.1% 45.0% 24.3% 13.7% 19.2% 8.7% 12.1% 0.3% 33.9% 34.6% 33.2% 32.7% 32.1% 32.1% 45.0% 45.0% 24.0% 22.4% 24.5% 24.0% 24.3% 35.7% 36.0% 38.9% 2 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 1Da
Slide 11: AFH Segment
AFH SEGMENT • Volume increased in Q1 2025 year-over-year, and decreased sequentially due to seasonality • Although orders remained strong, customer communication focused on potential tariffs impact • Profitability decreased year-over-year due to external purchased products and paper • Successful sta
Slide 12: Quarterly Financial Summary
Q UA R T E R LY F I N A N C I A L S U M M A RY % Change (Million CAD$, unless otherwise noted) Q1 2025 Q4 2024 Q1 2024 Y/Y Q/Q Revenue 546.1 539.6 479.4 13.9% 1.2% Cost of Sales 451.0 459.3 394.0 14.5% (1.8)% Gross Profit 95.1 80.3 85.4 11.4% 18.4% Gross Margin 17.4% 14.9% 17.8% Adjusted EBITDA1 75.
Slide 13: Quarterly Segmented Results
Q UA R T E R LY S E G M E N T E D R E S U LT S % Change (Million CAD$, unless otherwise noted) Q1 2025 Q4 2024 Q1 2024 Y/Y Q/Q Segment Revenue Consumer 465.2 452.7 404.3 15.1% 2.8% AFH 80.9 86.9 75.1 7.7% (6.9)% Total Segment Revenue 546.1 539.6 479.4 13.9% 1.2% Segment Adjusted EBITDA1 Consumer 76.
Slide 14: Q1 2025 Revenue Compared to Q1 2024
Q 1 2 0 2 5 R E V E N U E C O M PA R E D TO Q 1 2 0 2 4 Increase primarily due to: $66.7M • Higher Consumer segment volume Q1 2025 Revenue increase • Favourable selling prices across both segments • Positive FX impact on U.S. dollar sales 13.9% over Q1 2024 Geographic revenue segmentation $20.4M $46
Slide 15: Q1 2025 Adjusted EBITDA Compared to Q1 2024
Q 1 2 0 2 5 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 1 2 0 2 4 $8.7M $75.8M in Q1 2025 compared to $67.1M in Q1 2024 Q1 2025 Adjusted EBITDA1 increase Increase primarily due to: 12.9% • Higher sales volume over Q1 2024 • Increased selling prices • Lower manufacturing overhead costs Adjusted
Slide 16: Q1 2025 Revenue Compared to Q4 2024
Q 1 2 0 2 5 R E V E N U E C O M PA R E D TO Q 4 2 0 2 4 Sequential increase primarily due to: $6.5M • Higher Consumer segment volume Q1 2025 Revenue increase • Positive FX impact on U.S. dollar sales Partially offset by: 1.2% • Lower selling prices over Q4 2024 ($4.9)M $11.4M over Q4 2024 over Q4 20
Slide 17: Q1 2025 Adjusted EBITDA Compared to Q4 2024
Q 1 2 0 2 5 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 4 2 0 2 4 $9.0M $75.8M in Q1 2025 compared to $66.8M in Q4 2024 Q1 2025 Adjusted EBITDA1 increase Sequential increase primarily due to: 13.5% • Lower manufacturing overhead costs over Q4 2024 • Increased sales volume Partially offset by: A
Slide 18: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q1 2025 Q4 2024 Q1 2024 Cash 141.8 119.5 117.1 Current Portion of Long-term Debt 61.0 54.2 41.1 Long-term Debt 1,186.7 1,180.5 1,105.0 Net Debt 1,105.9 1,115.2 1,029.0 LTM Adjusted EBITDA1 273.6 264.8 255.7 Net Debt/LTM Adjusted EBITDA1 4
Slide 19: Capital Expenditures
C A P I TA L E X P E N D I T U R E S • Q1 2025 CAPEX totaled $17.5 million, $200 including $15.4 million related to $180 Sherbrooke Expansion Project $160 $140 • Anticipating $80-$100 million in CAPEX $120 for 2025, including the Sherbrooke Millions $100 Expansion Project $80 $60 $40 $20 $0 2021 202
Slide 20: Sustainability Focus
KEY TARGETS TO ACHIEVE BY 2030 S U S TA I N A B I L I T Y F O C U S 20
Slide 21: Driving Growth and Margins
DRIVING GROWTH AND MARGINS • Expecting continued strong growth in U.S. sales • Monitoring trade environment, while leveraging Made in Canada positioning • Managing margins amid changing cost base • Investing in brands to drive long-term share • Sherbrooke LDC paper machine will significantly reduce
Slide 22: Cleans messes
Cleans messes from A to Zed, not Zee. wie ey TX Gshmere SP2N9E) oe Oe sf, Lede PE UEN MADE BY CANADIANS FOR CANADIANS WWW.KPTISSUEINC.COM