Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Investor Presentation (March 2022)
18 slides from Greenfirst Forest Products's investor presentation, Mar 24, 2022
Slide 1: Investor Presentation
Investor Presentation March 24, 2022
Slide 2: Legal Disclaimer
Legal Disclaimer 2 Important: You Must Read the Following Before Continuing This Presentation is being provided to you by GreenFirst Forest Products Inc. (“GreenFirst” or the “ Company ”) for informational purposes only. are beyond the Company’s control and the effects of which can be difficult to p
Slide 3: One of the Top Lumber Producers in Canada
One of the Top Lumber Producers in Canada1 3 § GreenFirst began operating as a forest products business on August 28, 2021, with the acquisition of six sawmills and one paper mill from Rayonier Advanced Materials Inc. § GreenFirst currently employs ~1,500 people and serves a highly diversified custo
Slide 4: Annual Lumber Production Capacity of 905Mfbm
Annual Lumber Production Capacity of 905Mfbm 4 Annual Production Sawmills Capacity (Mfbm) Ontario 100% Canadian Chapleau 135,000 Cochrane 160,000 Hearst 110,000 Kapuskasing 105,000 Kenora1 150,000 Québec Total - Ontario 660,000 Québec Ontario La Sarre 135,000 Kapuskasing Béarn 110,000 Hearst Total -
Slide 5: Successful Integration of Acquired Assets
Successful Integration of Acquired Assets 5 § Corporate personnel for human resources, information technology, procurement, logistics, treasury and accounting have been hired and onboarded § Taken over most of the transitional services from Rayonier at the end of February 2022, with the balance expe
Slide 6: Lumber Prices are Expected to Remain Strong
Lumber Prices are Expected to Remain Strong 6 § North American home construction and renovation demand expected to remain strong § On the supply side, COVID, timber disease and insect infestation as well as natural disasters have disrupted lumber production. In addition, transportation disruptions h
Slide 7: Strong Lumber Prices Partially Offset by Inflation
Strong Lumber Prices Partially Offset by Inflation 7 The outlook for lumber prices is expecting to remain strong. At the same time, our operations, supply chain and transportation and delivery services are currently experiencing a wide range of inflationary cost pressures and operational challenges:
Slide 8: Access to Large Wood Baskets in ON and QC
Access to Large Wood Baskets in ON and QC 8 Forest Management Regions The mills are located in rich wood baskets and have licenses that provide long- term access to ~3.7M m3 of fiber from Ontario SFLs and Quebec Wood Supply Guaranties. Fiber supply licenses support our business plan to increase name
Slide 9: Deeply Committed to Sustainability
Deeply Committed to Sustainability 9 GreenFirst is dedicated to maintaining high standards of sustainability across our business practices § Lumber is carbon negative and is the only renewable major building material Green § Lumber building materials require less energy to produce and transport than
Slide 10: Significant Growth Opportunities
Significant Growth Opportunities 10 Short-Term Long-Term Within 18 months Between 18 and 36 months Expected Mill Optimization Capacity Expansion and Timeframe Prudent Acquisitions Non-capital and/or Capital-intensive projects Expected Capital capital-light projects with with longer time horizons Req
Slide 11: Financials
|) FINANGIALS..
Slide 12: Drivers of Profitability and Cash Flow
Drivers of Profitability and Cash Flow 12 Lowering Sawmill Softwood Operating Costs Lumber Prices Lumber Duties and Efficiencies Start Up Second Foreign Machine at Safety Exchange/ Paper Mill Energy Costs § Lumber prices are expected to continue to be volatile but to remain above historical trends.
Slide 13: Q4 2021 Financial Highlights
Q4 2021 Financial Highlights 13 (In thousands of Canadian Dollars) Q4 2021 Net sales $ 161,551 Cost of sales (131,151) Duties (13,117) Selling, general and administrative expenses (4,956) Other operating income 213 Operating income 12,540 Acquisition and transaction related costs (2,090) Finance cos
Slide 14: Q4 2021 Adjusted EBITDA
Q4 2021 Adjusted EBITDA 14 (In thousands of Canadian Dollars) Q4 2021 Net earnings for the period $ 7,953 Adjustments: Finance costs, net 4,529 Deferred tax recovery (2,031) Depreciation and amortization 5,835 EBITDA 16,286 Foreign exchange gain (18) Acquisition and transaction related costs 2,090 A
Slide 15: Rayonier Asset Acquisition Update
Rayonier Asset Acquisition Update 15 § Fair value determined on acquisition date may be adjusted until August 2022 § Deferred tax liability of $5.9 million set up in Q4 2021 § Inventory arbitration ($7.7 million) § Transaction costs of $2.1 million in Q4 2021; $9.9 million for fiscal 2021 § Signific
Slide 16: Liquidity
Liquidity 16 In thousands of Canadian Dollars As at December 31 2021 1 Total debt outstanding $ 115,221 Less: cash and cash equivalents (36,173) Net debt 79,048 Shareholders' equity 229,159 Total capital $ 308,207 1 Total debt outstanding consists of the carrying amounts of the Company’s credit faci
Slide 17: 2022 Outlook
2022 Outlook 17 § Home construction and repair and remodeling demand remains strong Demand § Expected interest rate increases for 2022 may moderate this demand § Our order files remain strong § Product shipment disruptions (increased shipping costs and lower shipping volumes) § Uncertainty around CO
Slide 18: Ownership Alignment
Ownership Alignment 18 Common Shares currently owned: Paul Rivett, Chairman* 5,682,667 Rick Doman, CEO & Director* 6,682,667 Larry Swets, Director* 5,360,281 17,725,615 (9.98%) In addition, directors, contractors and 211 employees have been granted 4.8 million stock options which allow them to parti
GreenFirst Forest Products — Investor Presentation (March 2022) on 6ix