Slide 1: Cascades
| Cascades
Slide 2: 2022 Annual General and Special Meeting of Shareholders
2022 Annual General and Special Meeting of Shareholders wT}! Cascades
Slide 3: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Certain statements that may be made today, 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 number of ris
Slide 4: Executive Chairman of the Board of Directors
Executive Chairman of the Board of Directors 4
Slide 5: Word of Welcome
Word of Welcome 5
Slide 6: Opening of the 2022 Annual General and Special Meeting
Opening of the 2022 Annual General and Special Meeting 6
Slide 7: Meeting Chair and Management Presenters
Executive Chairman of the President and Chief Vice-President and Chief Chief of Strategy, Legal Board of Directors Executive Officer Financial Officer Affairs and Corporate Secretary 7
Slide 8: Meeting Procedures
Meeting Procedures 8
Slide 9: Confirmation of the Mailing of the Notice of Meeting, Management Proxy Circular and Proxy Form
Confirmation of the Mailing of the Notice of Meeting, Management Proxy Circular and Proxy Form 9
Slide 10: Report of the Scrutineers
Report of the Scrutineers 10
Slide 11: Filing of the Audited Consolidated Financial Statements
Filing of the Audited Consolidated Financial Statements for the year ended December 31, 2021, and the Independent Auditor’s Report 11
Slide 12: Election of Directors
Election of Directors 12
Slide 13: Election of Directors
Election of Directors Alain Sylvie Élise Sylvie Lemaire Lemaire Pelletier Vachon Mario Patrick Martin Hubert T. Michelle Lacroix Plourde Cormier Lemaire Couture Nelson Mélanie Elif Alex N. Gentiletti Dunn Lévesque Blanco 13
Slide 14: Appointment of the Independent Auditor
Appointment of the Independent Auditor PricewaterhouseCoopers LLP Partnership of chartered professional accountants 14
Slide 15: Advisory Vote on Executive Compensation
Advisory Vote on Executive Compensation Accepting the Corporation’s Approach to Executive Compensation 15
Slide 16: Special Resolution for the Purpose of Amending the Articles of the Corporation
Special Resolution for the Purpose of Amending the Articles of the Corporation 16
Slide 17: Shareholder Proposals
Shareholder Proposals 17
Slide 18: Vote and Voting Results
Vote and Voting Results 18
Slide 19: President and Chief Executive Officer
President and Chief Executive Officer 19
Slide 20: Sales
Sales* ($M) 1,048 1,052 894 933 +4% -4% +6% 3,948 4,105 3,956 3,716 2018 2019 2020 2021 Cascades Boxboard Europe (divested Oct 2021) * As reported in previous public filings. Consolidated results have been adjusted to reflect retrospective adjustments of discontinued operations. Please refer to “Dis
Slide 21: Adjusted OIBD
Adjusted ($M) OIBD 1* 129 (operating income before depreciation and +10% -29% amortization) 108 +27% 546 496 97 51 392 389 margin margin margin margin 10.5% 12.6% 13.3% 9.8% 2018 2019 2020 2021 Cascades Boxboard Europe (divested Oct 2021) (1) Some information represents Non-IFRS financial measures,
Slide 22: Investments
Investments ($M) $330 Corporate & IT STRATEGICS PROJECTS INCLUDED TISSUE million 26 Tissue • Converting lines (US, Canada) 50 CONTAINERBOARD Specialty Containerboard • Paper machine Bear Island (Virginia, US) Products 217 37 • Box plant (Ontario) • Converting equipment (US Northeast) SPECIALTY PRODU
Slide 23: Highlights: Corporate
Highlights Sale of our equity position in Reno de Medici S.p.A., generating $450 M of net proceeds CORPORATE Repurchased US$299 M of senior unsecured notes Launched our 4th Sustainable Development Plan encompassing ambitious climate action targets Initiated comprehensive 2022-2024 Strategic Plan: “T
Slide 24: Highlights: Containerboard Packaging
Highlights Completed investments in converting assets as CONTAINERBOARD part of the strategic repositioning of Ontario operational platform PACKAGING Added state of the art converting equipment to meet growing demand in our strategic markets in the Northeast U.S. Advanced Bear Island containerboard
Slide 25: Bear Island Paper Machine: First Paper Roll December 2022
Eco-friendly, highly competitive products will complement Greenpac Mill product offering Production Annual Annual Ramp-Up Production OIBD (‘000 s.t.) (US$M) ~ $40 - 2023 ~70% ~330,000 $55 ~ $70 - FIRST PAPER ROLL 2024 ~94% ~435,000 $85 December 2022 ~ $80 - 2025 ~97% ~450,000 $90 Aligned with key ma
Slide 26: Highlights: Specialty Products
Highlights Adjusted OIBD margin: SPECIALTY 13.5% from 12.7% in 2020 PRODUCTS Completed strategic investments to meet growing demand for our sustainable flexible and rigid plastic packaging and insulated containers A leader in sustainable food packaging, with widely recognized innovations 26
Slide 27: Highlights: Tissue Papers
Highlights Completed important modernization and TISSUE PAPERS optimization investments across our North American converting asset base Reorganization of operational platform resulted in planned divestiture of Laval, Québec plant $51 million of proceeds from sale of assets of closed plants in the US
Slide 28: Vice-President and Chief Financial Officer
Vice-President and Chief Financial Officer 28
Slide 29: Full Year 2021 Financial Overview
(Full Year 2021, except where specified) Sales $3,956 M SALES1 Containerboard Adj. OIBD3 & Margin $389 M / 9.8% Packaging 33% 6% Adj. CF from operations3 $296 M 15% Specialty Products Adj. Free CF (used)3 ($54 M) 79% Adj. Free CF (used) per share3 ($0.53) 53% Tissue Net debt3 (at 12/31/21) $1,351 M
Slide 30: Sales, Adj. OIBD and Margin 2018-2021 (Packaging Businesses)
2018 – 2021 ($M) Sales CAGR2 +5% +5% (2018 - 2021) : -1% 2,009 1,918 1,840 1,827 +3% -9% -8% +8% 410 441 403 372 22.3% 24.1% 21.0% 18.5% 2018 2019 2020 2021 1 Sales Adj. OIBD Adj. OIBD Margin1 1 Please click here for supplemental information on Non-IFRS measures and other financial measures. 30 2 Co
Slide 31: Sales, Adj. OIBD and Margin 2018-2021 (Specialty Products)
($M) +16% Adj. OIBD +37% -4% Margin1: 548 (since 2018) : 492 473 +4% 358 +9% +23% +67% 74 55 60 33 11.2% 12.7% 13.5% 9.2% 2018 2019 2020 2021 1 1 Sales Adj. OIBD Adj. OIBD Margin 1 Please click here for supplemental information on Non-IFRS measures and other financial measures. 31
Slide 32: Sales, Adj. OIBD and Margin 2018-2021 (Tissue Papers)
Sales and ($M) Adj. OIBD -21% Margin1: +12% +7% 1,615 1,509 1,352 COVID-related 1,272 demand fluctuations, cost inflation and logistics constraints led to -85% challenging tissue +103% market in 2021. +406% 175 86 10.8% 27 17 5.7% 2.1% 1.3% 2018 2019 2020 2021 1 Sales Adj. OIBD Adj. OIBD Margin 1 1
Slide 33: Net Debt Change 2020 to 2021
-20% -$328 M 286 1,679 1,351 (467) 81 43 36 9 (247) (53) (16) Cash flow from Proceeds from Dividends Payments for Net debt as of Business Investments Change in non- Right-of-use Net debt as of disposal operating disposals of F/X CAN$ & others cash working assets and paid & property, plant December 3
Slide 34: Net Debt/Adjusted OIBD and Long-Term Debt Maturities
NET DEBT/ADJUSTED OIBD1,2,3 LONG-TERM DEBT MATURITIES (as of Dec. 31, 2021, in $M) 5.0x 4.6x 4.7x 4.0x 580 3.8x 3.6x 3.5x 3.5x 3.25x 383 2.5x 248 175 260 109 74 202 125 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1 year >1 year 2025 2026 2028 Senior notes Debts without recourse – excl Greenpac
Slide 35: Q1 2022 Results
Q1 2022 Results
Slide 36: Q1 2022 Results Summary
(in millions of Canadian dollars, except per common share amounts) Q1 2022 Q4 2021 Q1 2021* Sales 1,038 1,028 942 Operating income (loss) (4) (90) 44 Adjusted OIBD1 58 62 122 Net earnings (net loss) (15) 105 22 Adjusted net earnings (net loss)1 (15) (9) 29 Net earnings (loss) per common share ($0.15
Slide 37: Recycled Fibre and Virgin Pulp Prices
Recycled Fibre Prices Virgin Pulp Prices (US $/s.t.) Current Current (US $/s.t.) (May-22) (May-22) 243 1,695 1,460 135 White grades (Basket of products) Brown grades (OCC) NBSK NBHK Recovered Paper Prices (US$/s.t.) Q1 2022 Q4 2021 Q1 2021 Q1/Q1 Q1/Q4 White grades - Basket of products (Northeast ave
Slide 38: Q1 Operating Income and Adj. OIBD Variance
(in $M) -109% -$48 M -52% -$64 M 13 122 4 65 (3) (28) 58 44 (37) (2) 60 (4) Q1 2021 Depr. & Specific Q1 2021 1 Specialty Corporate Container- Tissue Q1 2022 Specific Depr. & Q1 2022 Operating Amort. items Adj. OIBD Products Activities board Papers Adj. 1 items Amort. Operating income OIBD loss (1) P
Slide 39: Net Debt Change Q1 2022
(in $M) +15% +$198 M 102 94 1,549 21 1,351 21 (21) 1 (14) (6) Net debt as of Cash flow from F/X CAN$ Proceeds from Right-of-use Dividends Change in non- Payments for Net debt as of disposals of Investments and paid & cash working December 31, operating assets and property, plant March 31, 2022 prope
Slide 40: President and Chief Executive Officer
President and Chief Executive Officer 40
Slide 41: 2022 Outlook: Demand Dynamics and Cost Pressures
Good demand dynamics for Price of natural gas Packaging products Announced selling price increases Availability and cost of in all business segments logistics Return to normalized demand levels in the Raw material costs, tissue as the reopening of the economy particularly white recycled accelerates
Slide 42: Our 2022-2024 Strategic Plan: The Path Forward
Our 2022-2024 The Path Strategic Forward Plan
Slide 43: Containerboard: Complete Bear Island Start-up
Complete Bear Island start-up ✓ Well-positioned platform to capitalize on expected growth in targeted markets Increase integration with new ✓ Box demand forecasted to grow at 2.1% (CAGR2) converting capacity in the U.S. over the 2020 – 2025 period3 ✓ Our sustainable solutions are aligned with Achiev
Slide 44: Specialty Products: Increase Pace of New Sustainable Product Development
Increase pace of new sustainable product ✓ Solid demand trends for fresh produce and development and commercial launches foodservice packaging, with growing preference for sustainable packaging solutions outpacing general market projected growth Continue to develop and grow our share of targeted mar
Slide 45: Tissue: Leverage Well Invested Asset Base and Limit CAPEX
Leverage well invested asset base and limit CAPEX to $35 M annually through 2024 ✓ Economic re-opening, increased travel and traffic in offices and public spaces supports a return to normalized demand for Away-from- Focus on production execution and efficiency, Home tissue products particularly in o
Slide 46: Financial Targets
Focus on free cash flow generation; Maintaining financial flexibility 1 Revenue: ~$5.0 B+ in 2024 OIBD4 ~ 11%-13% in 2022; 2 Margin: ~ 13%-15% in 2024 Financial Capex: ~$415 M in 2022 (incl. $275 M for Bear Island) 3 Targets ~4% of revenue in 2023-20241 Free cash ~ 9%-11% of revenue, following 4 flo
Slide 47: Recognized for Sustainable Business Practices
We have been recognized for our sustainable business practices and focus on our employees. 47
Slide 48: Where We Are, Where We're Going
Our track record and our sustainability action plan both show we are solutions driven, and we can enable our customers to reduce their footprint through our value-added eco-friendly products and services. Where We Are Where We’re Going 50% greenhouse gas (GHG) intensity emissions reduction (scope 1)
Slide 49: Ambitious Targets and a Robust Action Plan
We have ambitious targets and a robust action plan. Climate Change 38.7% IN 2030 VS 2019 27.5% IN 2030 VS 2019 22% IN 2030 VS 2019 Respectful scopes 1 + 2, mills (kg of CO2 scopes 1 + 2, other (kg of CO2 eq.) scope 3 (kg of CO2 eq./MT) eq./MT) of the Water Consumption Planet 100% IN 2030 VS 2019 6%
Slide 50: Innovative and Sustainable Solutions
Innovative and sustainable solutions
Slide 51: Question Period
Question Period 51
Slide 52: Adjournment of the Meeting
Adjournment of the Meeting 52
Slide 53: Investor Relations and Communications Contacts
Jennifer Aitken, MBA Hugo D'Amours Director, Investor Relations Vice-President, Communications, Public Affairs and Sustainable Development 514-282-2697 418-573-2348 investisseurs@cascades.com hugo_damours@cascades.com 53
Slide 54: Thank you!
2022 Annual General and Special Meeting of Shareholders Thank you! jw! Cascades
Slide 55: Cascades
| Cascades