Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Investor Presentation (May 2022)
23 slides from Greenfirst Forest Products's investor presentation, May 12, 2022
Slide 1: Investor Presentation
Investor Presentation May 12, 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: Strong Team with Forestry Expertise
Strong Team with Forestry Expertise 3 Rick Doman Alfred Colas Michel Lessard CEO & Director Chief Financial Officer President John Shelley Chief Information Officer Mathieu Brière Vice President, Sales and Marketing André Ouimette Vice President, Operations West Beckie Gallardi Vice President, Human
Slide 4: CEO Remarks
CEO REMARKS our forests. Our future
Slide 5: One of the Top Lumber Producers in Canada
One of the Top Lumber Producers in Canada1 5 § GreenFirst owns seven sawmills and one paper mill across Ontario and Quebec. § GreenFirst currently employs ~1,500 people and serves a highly diversified customer base. Working towards a bright § GreenFirst’s business strategy is to build a leading glob
Slide 6: Annual Lumber Production Capacity of 905Mfbm
Annual Lumber Production Capacity of 905Mfbm 6 Annual Production Sawmills Capacity (Mfbm) 100% Canadian Ontario Chapleau 135,000 Cochrane 160,000 Hearst 110,000 Québec Kapuskasing 105,000 Kenora1 150,000 Total - Ontario 660,000 Ontario Kapuskasing Québec Hearst La Sarre 135,000 La Sarre Béarn 110,00
Slide 7: Operational Highlights
Operational Highlights 7 § Production was down in Q1 mainly due to challenges with COVID-19 § Shipments were down substantially due to logistics issues. We see a significant improvement in Q2 on lumber shipments § The Company announced the potential relocation of the Kenora sawmill. The Ontario gove
Slide 8: Lumber Prices are Expected to Remain Strong
Lumber Prices are Expected to Remain Strong 8 § Strong demand and lower supply maintain elevated prices. § U.S. housing starts at 1.79M units in March 2022, 0.3% above February's level § Forecast encouraging for the balance of 2022 § North American lumber prices are expected to be volatile but to re
Slide 9: Strong Lumber Prices Partially Offset by Inflation
Strong Lumber Prices Partially Offset by Inflation 9 The outlook for lumber prices continues to be favourable. At the same time, our operations, supply chain and transportation services are currently experiencing a wide range of inflationary cost pressures and operational challenges: § Increase in s
Slide 10: Financials
FINANCIALS our forests. Our future
Slide 11: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights 11 In thousands of Canadian Dollars, except per share amounts 1 Includes net sales to external parties only. 2 Adjusted EBITDA is a Non-GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented
Slide 12: Q1 2022 Adjusted EBITDA
Q1 2022 Adjusted EBITDA 12 In thousands of Canadian Dollars References to EBITDA are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as acquisition and t
Slide 13: Liquidity
Liquidity 13 In thousands of Canadian Dollars § The Company remains fully in compliance with loan debt covenants § Asset backed revolving loan facility of $65.0 million remains undrawn § Less than $15.0 million of outstanding letters of credit backed by the facility § Cash from operations has funded
Slide 14: Outlook
Outlook 14 § Entering spring 2022, rising interest rates in response to higher inflation represented a head wind to lumber demand § In the second half of April 2022, lumber market prices rebounded partly due to tightening lumber supply § We expect COVID-19 to remain a concern through the remainder o
Slide 15: Ownership Alignment
Ownership Alignment 15 Common Shares currently owned: Paul Rivett, Chairman 5,708,330* Rick Doman, CEO & Director 6,959,667* Larry Swets, Director 5,385,944* Michael Mitchell, Director 4,965,483* 23,019,424 (12.96%) Commitment to continue to invest in GreenFirst Common Shares with majority of after-
Slide 16: Forestry
FORESTRY our forests. Our future
Slide 17: Access to Large Wood Baskets in ON and QC
Access to Large Wood Baskets in ON and QC 17 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 nam
Slide 18: Deeply Committed to Sustainability
Deeply Committed to Sustainability 18 GreenFirst is dedicated to maintaining high standards of sustainability across our business practices § Wood stores carbon and is the only renewable major building material Green § Lumber building materials require less energy to produce and transport than Advan
Slide 19: Fully Integrating ESG
Fully Integrating ESG 19 GreenFirst Forest Products is committed to maintaining and implementing ever-higher standards of sustainability across its business. GreenFirst produces quality lumber and paper products in a safe and responsible manner to protect our employees and PURPOSE environment, creat
Slide 20: GreenFirst's Px4 Values
GreenFirst's Px4 Values 20 PEOPLE PRINCIPES § SAFE AND HEALTHY § INTEGRITY Ensure a safe and healthy work Conduct our business through environment ethical decision making, sound governance and effective management systems. § INCLUSIVE Promote an inclusive workplace that § QUALITY welcomes diversity,
Slide 21: GreenFirst's Px4 Values
GreenFirst's Px4 Values 21 PLANET PROGRESS § RESPONSIBLE FORESTRY PRACTICES § PERFORMANCE External verification of Forestry Practices to the Relentlessly focused on delivering excellence most rigorous internationally recognized standards § RESOURCES EFFICIENCY § PARTNERSHIP Reduce, reuse, and recycl
Slide 22: Significant Growth Opportunities
Significant Growth Opportunities 22 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 23: Thank you. Merci beaucoup.
Thank you. Merci beaucoup. We will now respond to your questions submitted online. our forests. Our future
GreenFirst Forest Products — Investor Presentation (May 2022) on 6ix