Slide 1: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS November 7, 2024
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENT Certain statements in this presentation, including statements regarding future results and performance, are forward-looking statements within the meaning of securities legislation based on current expectations. The accuracy of such statements is subject to a numb
Slide 3: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS (In millions of CAN$, except per common share amounts, where noted) Q3 2024 Q2 2024 Q3 2023 LTM2 Financial Results Sales 1,201 1,180 1,198 4,628 Operating income 36 34 80 55 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 140 112 161
Slide 4: Overview of Consolidated Profitability Drivers
OVERVIEW OF CONSOLIDATED PROFITABILITY DRIVERS Consolidated EBITDA (A)1 Variation Quarter-over-Quarter Year-over-Year (in millions of Canadian dollars) Q3 2024 vs Q2 2024 Q3 2024 vs Q3 2023 Pricing $21 million $7 million Operating costs $16 million $12 million Volume & Mix ($1 million) ($5 million)
Slide 5: Recycled Fibre Costs - Index List Prices
RECYCLED FIBRE COSTS - INDEX LIST PRICES ($ US/s.t.) Current OCC: 300 (Oct-24) • Improving market conditions seen throughout Q3, with 275 higher seasonal generation and continuing soft export 250 225 activity both contributing to greater fibre availability and 200 pricing tailwinds for buyers 175 •
Slide 6: Virgin Pulp Costs - Index List Prices
VIRGIN PULP COSTS - INDEX LIST PRICES ($ US/metric ton) Current VIRGIN PULP: (Oct-24) • Normalizing hardwood and eucalyptus markets with 1,800 new capacity, ramp up of new mills and high global 1,700 pulp inventory levels leading to decrease in index 1,600 pricing at the end of Q3 1,400 1,370 • Pulp
Slide 7: Packaging Products / Containerboard
PACKAGING PRODUCTS / CONTAINERBOARD Comments on sequential performance Results Change vs. Q3 2024 Q2 2024 Q3 2023 è Total shipments increased by 1% sequentially. This reflects a 3% increase in parent roll shipments following prolonged downtime at the Greenpac and Bear Island mills in the Shipments (
Slide 8: Packaging Products / Containerboard
PACKAGING PRODUCTS / CONTAINERBOARD Quarterly EBITDA (A)1 (M CAN$) è Sequential Q3 shipments of converted products: Canada -1.5% (vs. market +2.1%); US +0.8% (vs. market +0.4%) 17% 12% 9% 10% 15% è Year-over-year Q3 shipments of converted products: Canada +1.8% (vs. market +7.6%); US +0.4% (vs. mark
Slide 9: Packaging Products / Specialty Products
PACKAGING PRODUCTS / SPECIALTY PRODUCTS Results Change vs. Comments on sequential performance Q3 2024 Q2 2024 Q3 2023 è Sales increased sequentially by $2 M or 1%. Overall, higher average selling price Sales (M$) and mix of product sold had a positive impact of $3 M. This was partially offset by low
Slide 10: Packaging Products / Specialty Products
PACKAGING PRODUCTS / SPECIALTY PRODUCTS Quarterly EBITDA (A)1 (M CAN$) 13% 12% 16% 16% 16% è Cardboard: Results were stable sequentially as lower 25 26 27 operational and maintenance expenses were offset by higher 21 raw material cost and slightly lower volumes 19 è Moulded pulp: Stable results sequ
Slide 11: Tissue Papers
TISSUE PAPERS Results Change vs. Comments on sequential performance Q3 2024 Q2 2024 Q3 2023 è Shipments were slightly lower on a sequential basis. This reflected stable parent roll Shipments (’000 s.t.) shipment, a 1% increase in Away-from-Home converted product shipments, and a 2% 122 —% (9)% decre
Slide 12: Tissue Papers
TISSUE PAPERS Quarterly EBITDA (A)1 (M CAN$) 14% 16% 14% 14% 11% è Q3 2024 Shipments of Converted Products: 61 61 50 54 Retail tissue Away-from-Home tissue 43 10.6 M cases 5.4 M cases Q3 vs. Q2: -1.2% Q3 vs.Q2: +0.8% Q3 vs. Q3: -1.5% Q3 vs.Q3: -5.4% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 EBITDA (A)
Slide 13: Q3 2024 EBITDA (A) to Operating Income Reconciliation
Q3 2024 EBITDA (A)1 TO OPERATING INCOME RECONCILIATION (M CAN$) 160 140 2 120 (5) (7) (24) 80 36 40 (70) 0 1 EBITDA (A) Unrealized gain Restructuring Impairment Other loss Depr. & Operating income on financial costs charges Amort. instruments Corporate, Recovery and Container- Specialty Tissue Recyc
Slide 14: Net Earnings - As Reported vs Adjusted
NET EARNINGS - AS REPORTED vs ADJUSTED1 NET EARNINGS NET EARNINGS PER COMMON SHARE2 (In millions of Canadian dollars, except per common share amounts) Q3 2024 Q3 2024 As reported 1 $0.01 Specific items: Restructuring costs 5 $0.03 Other loss 24 $0.18 Impairment charges 7 $0.06 Foreign exchange loss
Slide 15: Quarterly Year-over-Year Adjusted EPS Variance
QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 0.50 0.01 0.01 0.01 0.10 0.44 (0.01) 0.40 (0.04) 0.34 0.30 0.27 $ cents (0.15) 0.20 0.10 (0.26) 0.01 0.00 2 2 2 EPS reported Specific Adjusted EPS Non- Financing Share of Depreciation Income tax EBITDA (A) Adjusted EPS Specific EPS reported Q3 2023 i
Slide 16: Quarterly Sequential Adjusted EPS Variance
QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 0.01 0.01 0.30 0.21 (0.01) 0.27 (0.01) (0.02) 0.20 $ cents 0.10 0.07 0.08 0.01 (0.26) 0.01 0.00 2 2 2 EPS reported Specific Adjusted EPS EBITDA (A) Financing Income Depreciation Share of Non- Adjusted EPS Specific EPS reported Q2 2024 items Q2 2024 expen
Slide 17: Cash Flow Overview
CASH FLOW OVERVIEW 2022 2023 2024 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 YTD4 LTM5 Cash flow from operations 19 81 60 100 260 89 117 100 91 397 32 78 76 186 277 Specific items1 7 — 2 3 12 1 5 6 12 24 14 17 10 41 53 Adjusted cash flow from op
Slide 18: New Capital Investments
NEW CAPITAL INVESTMENTS (in millions of Canadian dollars, excluding new leases, disposal of assets and accounts payable variation) 532 36 2024 Forecast: 41 ~ $160 M1 29 312 330 26 289 27 50 32 81 227 213 37 35 169 39 22 426 25 20 ~ 160 24 85 104 96 61 217 184 22 197 20 22 18 25 62 66 84 9 42 2017 20
Slide 19: Net Debt Reconciliation - Q3 2024
NET DEBT1 RECONCILIATION - Q3 2024 (M CAN$) 2,150 2,100 2,093 2,050 35 2,039 19 2,000 (76) 16 (26) 1,950 (21) (1) 1,900 Net debt as of Cash flow Changes in non- F/X CAN$ Proceeds from Dividends paid & Right-of-use Payments for Net debt as of June 30, 2024 from oper. cash disposals of change in capit
Slide 20: Consolidated Financial Ratios & Debt Maturities
CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Net Debt / EBITDA (A)1,3 Interest Coverage Ratio2,3 5.2x 6.7x 4.3x 5.8x 6.0x 4.0x 3.8x 3.6x 3.5x 3.25x 3.5x 3.4x 4.7x 4.6x 4.3x 4.6x 4.9x 4.5x 2.5x 3.5x 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 202
Slide 21: Near Term Factors
NEAR TERM FACTORS Q4 2024 EBITDA (A)1 TREND vs. Q3 2024 (*Assumes current index prices) CONSOLIDATED • Good sequential performance expected in all business segments • Higher selling prices and lower raw material cost benefits offset by Containerboard lower seasonal demand levels • Lower raw material
Slide 22: Appendix
APPENDIX 22
Slide 23: Summary of Quarterly Financial Results & KPIs
SUMMARY OF QUARTERLY FINANCIAL RESULTS & KPIs 2022 2023 2024 (In millions of CAN$, except per common share amounts, where noted) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 YTD3 LTM4 Financial Results Sales 1,038 1,119 1,174 1,135 4,466 1,134 1,168 1,198 1,138 4,638 1,109 1,180 1,201 3,490 4,628 Oper
Slide 24: Year-over-Year Sales Reconciliation
YEAR-OVER-YEAR SALES RECONCILIATION +0% (M CAN$) 1,300 12 7 24 1,198 1,201 1,200 (40) 1,100 Sales Volume Sales (M CAN$) Q3 2023 Mix F/X CAN$ Price and other items Q3 2024 Containerboard 593 6 7 15 (11) 610 Specialty Products 157 — 1 6 5 169 Tissue Papers 422 18 4 (14) (40) 390 Corporate, Recovery an
Slide 25: Year-over-Year EBITDA (A) Reconciliation
YEAR-OVER-YEAR EBITDA (A)1 RECONCILIATION + Lower + Higher realized spread + Higher selling prices production, energy and transportation costs - Higher + Higher volume and lower production costs raw material & production costs - Higher raw material costs - Lower volume offset by favourable - Lower s
Slide 26: Sequential Sales Reconciliation
SEQUENTIAL SALES RECONCILIATION (M CAN$) +2% 1,220 6 21 1,201 1,200 (2) (4) 1,180 1,180 1,160 Sales Volume Sales (M CAN$) Q2 2024 Price and other items F/X CAN$ Mix Q3 2024 Containerboard 585 21 9 (1) (4) 610 Specialty Products 167 3 (1) — — 169 Tissue Papers 397 (3) (3) (1) — 390 Corporate, Recover
Slide 27: Sequential EBITDA (A) Reconciliation
SEQUENTIAL EBITDA (A)1 RECONCILIATION Lower selling prices and higher raw Higher selling prices, lower production and + Higher realized spread - + material costs freight costs - Lower volume - Slightly lower volume + Higher volume offset by less favourable mix - Higher transportation costs - Higher
Slide 28: Cost of Sales, Selling and Administrative Expenses
COST OF SALES, SELLING AND ADMINISTRATIVE EXPENSES (In millions of Canadian dollars) Q3 2024 Q2 2024 Q3 2023 Cost of sales Raw materials 448 431 419 Wages and benefits 190 198 192 Energy 51 51 57 Delivery 132 133 135 Other 154 161 151 Depreciation and amortization 70 69 69 1,045 1,043 1,023 Selling
Slide 29: Selected Reference Prices
SELECTED REFERENCE PRICES Current Current Containerboard - Selected Products (US$/s.t.) Specialty Products - Selected Products (Oct-24) (US$/s.t.) (Oct-24) 1,000 1,200 1,100 1,070 900 905 1,000 800 795 900 800 700 700 600 600 Nov-23 Aug-23 May-23 Feb-23 Nov-22 Aug-22 May-22 Feb-22 Nov-21 Aug-21 May-
Slide 30: Selected Reference Prices and Fibre Costs
SELECTED REFERENCE PRICES AND FIBRE COSTS Q3 2024 vs Q3 2024 vs. 2022 2023 2024 Q3 2023 Q2 2024 These indexes should only be used as an indicator of trends and they may be different than our actual selling prices or purchasing costs. Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 (units) (%) (units) (%)
Slide 31: For more information
For more information: www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investor@cascades.com