Greenfirst Forest Products Inc · TSX:GFP
Greenfirst Forest Products — Q3 2024 Earnings Presentation
20 slides from Greenfirst Forest Products's earnings presentation, Nov 13, 2024
Slide 1: Q3 2024 Investor Presentation
Q3 2024 Investor Presentation November 13, 2024
Slide 2: Legal Disclaimer
Legal Disclaimer 2 This Presentation is being provided to you by GreenFirst Forest Products Inc. (“GreenFirst” or the “Company”) for informational purposes only. Cautionary Note Regarding Forward-Looking Information This Presentation includes information, statements, beliefs and opinions which are f
Slide 3: Overview
Overview Joel Fournier, Chief Executive Officer
Slide 4: Highlights
Highlights 4 New duties rate of 14.40% applied in August 2024 Purchase of buy-out group annuity transferred $26.5 million of defined benefit obligations Lower lumber pricing and targeted curtailments impacted Q3 2024 results Completion of Kap Paper spin-out subsequent to period end Launch
Slide 5: GreenFirst Strategic Plan
GreenFirst Strategic Plan 5 Vision GreenFirst Forest Products aims to grow its business in the lumber sector and become one of the largest wood producer in Ontario. Mission To become one of the top quartile lumber producers in North America by prioritizing continuous improvement, strategic capital i
Slide 6: Phase I – Strategic CAPEX Plan
Phase I – Strategic CAPEX Plan 6 Grow capacity with existing mills by 20% Reduce costs by 10% Improve lumber recovery Utilization of excess high quality Eastern SPF allowable cut Grow our sales volume with key partners Improve break even EBITDA
Slide 7: Current and Future Profitability
Current and Future Profitability 7 Break even EBIDTA (WB price) improved by approximately 20% from 2022 to 2024 Break even EBITDA (WB price) is projected to improve by an additional 15% after the completion of Phase I
Slide 8: Project Detail Potential Timeline 2025/2026
Project Detail Potential Timeline 2025/2026 8 Phase 1 strategic project Project Project type Impact Project 1 New batch kiln at plant A Increase drying capacity Project 2 New saw line at plant A increase production capacity Project 3 New planer line at plant B Increase production capacity Project 4
Slide 9: Lumber Pricing Random Lengths (Great Lakes)
Lumber Pricing Random Lengths (Great Lakes) 9
Slide 10: U.S. Housing Starts Forecasts
U.S. Housing Starts Forecasts 10 Source: FEA GREENFIRST Privé et confidentiel / private and confidential 10
Slide 11: Financial Summary
11 Financial Summary Peter Ferrante, CFO
Slide 12: Profit and Loss Breakdown – Q3'24
Profit and Loss Breakdown – Q3’24 12 Q3'24 (in $000's) Net Sales 70,806 (66,160) Cost of Sales (exclud. depreciation) Duties 14,992 Other operating income (424) EBITDA = 15,673 Selling, general and administrative expenses (3,542) Finance income (costs), net 1,924 Depreciation (3,611) Net Income = 14
Slide 13: Q3'24 Financial Comparison
Q3’24 Financial Comparison 13 1Adjusted 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 by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial
Slide 14: Operations - Lumber
14 Operations - Lumber Joel Fournier, CEO GreenFirst
Slide 15: Tough Markets But Focus Remains On Operations
Tough Markets But Focus Remains On Operations 15 Pressure from lumber markets impacting Q3 2024 results, but strong momentum in Q4 2024 thus far Targeted scheduled downtime taken in Q3 2024 to balance market conditions Positive production performance with records being set in Q3 2024 despite c
Slide 16: Lumber Operations
Lumber Operations 16 Quarter Year-to-date
Slide 17: Committed to Sustainability
Committed to Sustainability 17 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 Advantages o
Slide 18: Operations - Paper
18 Operations - Paper Terry Skiffington, CEO Kap Paper
Slide 19: Paper mill Overview
Paper mill Overview 19 Completion of Kap paper spin-out in Q4 2024. Q3 2024 operations impacted by seasonal electricity curtailments Demand pushback on recently announced price increase in September No recordable injuries in the quarter Goal to attain EBITDA positive operations Working w
Slide 20: Thank You
PRODUITS FORESTIERS GREENFIRST oo FOREST PRODUCTS (@™ GREENFIRST FoREST PRODUCTS
GreenFirst Forest Products — Q3 2024 Earnings Presentation on 6ix