Cascades Inc. · TSX:CAS
Cascades — Q1 2025 Earnings Presentation
33 slides from Cascades's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS May 8, 2025
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) Q1 2025 Q4 2024 Q1 2024 LTM2 Financial Results Sales 1,154 1,211 1,109 4,746 Operating income 50 16 9 136 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 125 146 103
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) Q1 2025 vs Q4 2024 Q1 2025 vs Q1 2024 Average selling prices $9 million $47 million Operating costs ($21 million) ($10 million) Volume & Mix ($27 mi
Slide 5: Recycled Fibre Costs - Index List Prices
RECYCLED FIBRE COSTS - INDEX LIST PRICES ($ US/s.t.) Current OCC: 300 (May-25) • Despite lower seasonal generation levels of OCC in 275 250 February, softer demand levels kept the index pricing 225 stable throughout Q1 200 175 • Lower OCC published index prices in May (-$5 to -$10, 150 depending on
Slide 6: Virgin Pulp Costs - Index List Prices
VIRGIN PULP COSTS - INDEX LIST PRICES ($ US/metric ton) Current VIRGIN PULP: (Apr-25) • Tariff threat on Canadian NBSK & NBHK lead to stronger 1,800 1,610 demand from US customers, and price increases. Market/ 1,600 maintenance downtime of ~700 t of BEK (Eucalyptus) lead to marginal price increase 1
Slide 7: Packaging Products Results: Historical and New Presentation
PACKAGING PRODUCTS RESULTS: HISTORICAL AND NEW PRESENTATION HISTORICAL PRESENTATION 2023 2024 (in millions of Canadian dollars) (unaudited) Q1 Q2 Q3 Q4 YEAR Q1 Q2 Q3 Q4 YEAR Sales Containerboard 561 562 593 561 2,277 556 585 610 613 2,364 Specialty Products 161 164 157 160 642 160 167 169 175 671 In
Slide 8: Packaging Products: Q1 2025 Sequential Performance
PACKAGING PRODUCTS: Q1 2025 SEQUENTIAL PERFORMANCE SALES ($M) (3)% HIGHLIGHTS 12 8 • Total volume -5%, lower converted products 782 shipments driven by macro-environment and tariff (2) 762 uncertainty (38) Box Shipments Cascades Industry 2 Canada Q4 2024 F/X Selling Mix Volume Q1 2025 (6.0)% (5.8)%
Slide 9: Packaging Products: Q1 2025 Year-over-Year Performance
PACKAGING PRODUCTS: Q1 2025 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 7% HIGHLIGHTS 30 1 50 762 • Total volume -5%, lower converted products shipments reflect previous plant closures, and (28) macro-environment and tariff uncertainty 709 Box Shipments Cascades Industry 2 Q1 2024 Selling F/X Mix Volume Q
Slide 10: Packaging Products - Sales Trends
PACKAGING PRODUCTS - SALES TRENDS As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) Product Q1 2025 Sales QoQ YoY Trend Q2/Q1 Corrugated 55% Paper rolls 28% Other 17% As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) Industry Q1 2025 Sales QoQ YoY Trend Q2/Q1 Industrial & Manufacturing 15% Food
Slide 11: Tissue Papers: Q1 2025 Sequential Performance
TISSUE PAPERS: Q1 2025 SEQUENTIAL PERFORMANCE SALES ($M) (8)% HIGHLIGHTS 394 6 1 364 • Lower volumes: shipments -9% in short tons (37) (AfH tissue -15%, Retail tissue -5%) • Higher operating costs due energy and Q4 2024 F/X Selling Volume Q1 2025 Sales CAN$ Price Sales transportation EBITDA (A) ($M)
Slide 12: Tissue Papers: Q1 2025 Year-over-Year Performance
TISSUE PAPERS: Q1 2025 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 15 (1)% HIGHLIGHTS 367 364 (3) (15) • Lower volumes: shipments -4% in short tons (AfH tissue -3%, Retail tissue -5%) Q1 2024 F/X Selling Volume Q1 2025 • Lower average selling price related to mix Sales CAN$ Price Sales 1 • Beneficial exch
Slide 13: Tissue Papers - Sales Trends
TISSUE PAPERS - SALES TRENDS As a % of Q1 2025 Volume (s.t.) Volume (s.t.) Volume (s.t.) Product Q1 2025 Sales Volume (s.t.) QoQ YoY Trend Q2/Q1 Parent rolls 2% 6,200 (11)% (6)% Away-from-Home 35% 40,200 (15)% (3)% Retail 63% 63,500 (5)% (5)% Total 100% 109,900 (9)% (4)% 13
Slide 14: Q1 2025 EBITDA (A) to Operating Income Reconciliation
Q1 2025 EBITDA (A)1 TO OPERATING INCOME RECONCILIATION (M CAN$) 160 125 4 120 (1) (4) (5) 80 50 40 (69) 0 1 EBITDA (A) Unrealized gain Impairment Other Restructuring Depr. & Operating income on financial charges loss costs Amort. instruments Corporate, Recovery and Packaging Tissue Recycling (M CAN$
Slide 15: 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) Q1 2025 Q1 2025 As reported 7 $0.07 Specific items: Restructuring costs 5 $0.04 Other loss 4 $0.03 Impairment charges 1 $0.01 Unrealized gain on fina
Slide 16: Quarterly Year-over-Year Adjusted EPS Variance
QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 0.20 0.16 0.13 (0.01) 0.10 (0.02) 0.07 (0.06) 0.20 0.00 — $ cents -0.10 -0.20 (0.20) -0.30 EPS reported Specific Adjusted EPS EBITDA (A) 2 Depreciation Non- Adjusted EPS Specific EPS reported Q1 2024 items Q1 2024 2 & controlling Q1 2025 2 items Q1 2
Slide 17: Quarterly Sequential Adjusted EPS Variance
QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 0.40 0.05 0.01 0.30 0.38 0.25 (0.01) (0.02) 0.20 0.13 $ cents 0.10 (0.15) 0.07 (0.06) 0.00 -0.10 (0.13) -0.20 2 2 EPS reported Specific Adjusted EPS Depreciation Non- Financing Share of EBITDA (A) Adjusted EPS Specific EPS reported Q4 2024 items Q4 2024
Slide 18: Cash Flow Overview
CASH FLOW OVERVIEW 2023 2024 2025 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Cash flow from operations 89 117 100 91 397 32 78 76 109 295 45 Specific items1 1 5 6 12 24 14 17 10 20 61 17 Adjusted cash flow from operations2 90 122 106 103 421 46 95 86
Slide 19: New Capital Investments
NEW CAPITAL INVESTMENTS (in millions of Canadian dollars, excluding new leases, disposal of assets and accounts payable variation) 532 36 41 330 26 289 50 32 2025 Forecast: 213 455 35 ~ $175 M1 22 175 148 85 30 254 222 44 106 74 24 2020 2021 2022 2023 2024 Q1 2025 2025F Packaging Products Tissue Pap
Slide 20: Net Debt Reconciliation - Q1 2025
NET DEBT1 RECONCILIATION - Q1 2025 (M CAN$) 2,250 97 2,216 2,200 2,150 36 2,096 2,100 19 14 2 2,050 (45) (2) 2,000 Net debt as of Cash flow Investments F/X CAN$ Dividends paid & Right-of-use Payments for Changes in non- Net debt as of December 31, 2024 from oper. and others change in capital assets
Slide 21: Consolidated Financial Ratios & Debt Maturities
CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Net Debt / EBITDA (A)1,3 Interest Coverage Ratio2,3 5.2x 6.7x 4.2x 4.2x 5.8x 6.0x 3.8x 3.6x 3.5x 3.5x 3.4x 4.6x 4.3x 4.6x 4.9x 4.5x 3.3x 3.6x 3.8x 2.5x 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 22: Outlook: Q2 2025 EBITDA (A) Trend vs. Q1 2025
OUTLOOK: Q2 2025 EBITDA (A)1 TREND vs. Q1 2025 • Favourable raw material costs • Higher selling prices PACKAGING +5% - +10% • Temporary production limitations in Niagara Falls due to 3rd party steam supplier mechanical issues • Stronger volume trends TISSUE +5% - +10% • Higher raw material costs • H
Slide 23: Strategic Priority Areas: 2025 - 2026
STRATEGIC PRIORITY AREAS: 2025 - 2026 STRENGTHEN OUR CULTURE OF EXCELLENCE TO DRIVE PROFITABILITY 1 • Productivity led margin improvements: the right product for the right customer on the right equipment to drive productivity and profitability levels • Optimized logistics and cost structure, support
Slide 24: Appendix
APPENDIX 24
Slide 25: Summary of Quarterly Financial Results & KPIs
SUMMARY OF QUARTERLY FINANCIAL RESULTS & KPIs 2023 2024 2025 (In millions of CAN$, except per common share amounts, where noted) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Financial Results Sales 1,134 1,168 1,198 1,138 4,638 1,109 1,180 1,201 1,211 4,701 1,154 Operating income (loss) (80) 64 80 (24) 40 9
Slide 26: Year-over-Year Sales Reconciliation
YEAR-OVER-YEAR SALES RECONCILIATION +4% (M CAN$) 1,250 45 1 1,200 47 1,154 1,150 1,109 (48) 1,100 Sales Selling Volume Sales (M CAN$) Q1 2024 Price F/X CAN$ Mix and other items Q1 2025 Packaging Products 709 50 30 1 (28) 762 Tissue Papers 367 (3) 15 — (15) 364 Corporate, Recovery and Recycling activ
Slide 27: Year-over-Year EBITDA (A) Reconciliation
YEAR-OVER-YEAR EBITDA (A)1 RECONCILIATION + Higher selling prices - Higher + Favourable FX rate production costs partially offset by + Favourable FX rate lower transportation costs + Lower raw material costs - Higher raw material costs + Higher contribution from Recovery - Higher operating costs and
Slide 28: Sequential Sales Reconciliation
SEQUENTIAL SALES RECONCILIATION (M CAN$) -5% 1,250 9 18 1,211 (2) 1,200 1,154 1,150 (82) Sales Selling Volume Sales (M CAN$) Q4 2024 F/X CAN$ Price Mix and other items Q1 2025 Packaging Products 782 12 8 (2) (38) 762 Tissue Papers 394 6 1 — (37) 364 Corporate, Recovery and Recycling activities & Eli
Slide 29: Sequential EBITDA (A) Reconciliation
SEQUENTIAL EBITDA (A)1 RECONCILIATION Higher selling prices, lower raw material + costs + Higher + FX loss in Q4-24 vs FX gain in Q1-25 selling prices and lower raw material costs + Favourable FX rate + Lower stock-based compensation - Lower volume expenses - Lower volume - Higher production costs,
Slide 30: Cost of Sales, Selling and Administrative Expenses
COST OF SALES, SELLING AND ADMINISTRATIVE EXPENSES (In millions of Canadian dollars) Q1 2025 Q4 2024 Q1 2024 Cost of sales Raw materials 379 434 377 Wages and benefits 205 200 194 Energy 65 54 54 Delivery 128 131 138 Other 168 163 162 Depreciation and amortization 69 76 67 1,014 1,058 992 Selling an
Slide 31: Selected Reference Prices
SELECTED REFERENCE PRICES Current Current Containerboard - Selected Products (US$/s.t.) Specialty Products - Selected Products (Apr-25) (US$/s.t.) (Apr-25) 1,000 1,200 1,100 1,070 900 945 1,000 800 835 900 800 700 700 600 600 Nov-20 May-23 Aug-20 Feb-23 May-20 Nov-22 Feb-20 Aug-22 Feb-25 May-22 Nov-
Slide 32: Selected Reference Prices and Fibre Costs
SELECTED REFERENCE PRICES AND FIBRE COSTS Q1 2025 vs Q1 2025 vs. 2023 2024 2025 Q1 2024 Q4 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 (units) (%) (units) (%) Selli
Slide 33: For more information
For more information: www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investor@cascades.com