Cascades Inc. · TSX:CAS
Cascades — Q3 2018 Earnings Presentation
23 slides from Cascades's earnings presentation, Nov 9, 2018
Slide 1: Natural gas and crude oil price changes in the quarter
During the quarter, the average price of natural gas increased by 4% sequentially and decreased by 3% compared to the same period last year. In the case of crude oil, the average price was 3% and 48% higher sequentially and year-over-year, respectively.
Slide 2: Historical market prices of main products and raw material
unsecured s unsecured s 2016 2017 2018 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL US$/CAN$ - Average rate $ 0.75 $ 0.76 $ 0.74 $ 0.80 $ 0.79 $ 0.77 $ 0.79 $ 0.77 $ 0.77 $ 0.78 US$/CAN$ End of period rate $ 0.74 $ 0.75 $ 0.77 $ 0.80 $ 0.80 $ 0.80 $ 0.78 $ 0.76 $ 0.77 $ 0.77 EURO€/CAN$ - Average rate $ 0.
Slide 3: Adjusted OIBD variance definitions and business segment review
Adjusted OIBD (Operating income) Please refer to the “Supplemental Information on Non-IFRS Measures” section for reconciliation of these figures. Raw material (Operating income) impacts of these estimated costs are based on production costs per unit shipped externally or inter-segment, which are aff
Slide 4: Containerboard industry charts
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Slide 5: Containerboard Packaging performance, Q3 2018
1 Source: RISI 2 Source: Fibre Box Association Our Performance main variances 1 in sales and operating income for the Containerboard Packaging segment in the third quarter of 2018, compared to the same period of 2017, are shown below:
Slide 6: Containerboard Packaging Q3 results
Shipments 2 ('000 s.t.) — 369 370 Average Selling Price (CAN$/unit) 1,186 1,278 8% Sales ($M) 8% 438 472 Operating income ($M) (as reported) 50 94 88% (adjusted) 1 79% 53 95 OIBD 1 ($M) 69 116 68% % of sales 16% 25% (adjusted) 1 72 117 63% % of sales 16% 25% For definitions of certain sales and oper
Slide 7: Te TOR HREHHHT ON HH
Te TOR HREHHHT ON HH (mt perweck) mi 206m 2017 2018
Slide 8: Boxboard Europe performance, Q3 2018
1 Source: CEPI Cartonboard Our Performance main variances 1 in sales and operating income for the Boxboard Europe segment in the third quarter of 2018, compared to the same period of 2017, are shown below:
Slide 9: Boxboard Europe Q3 results
Shipments 2 ('000 s.t.) -4% 271 259 Average Selling Price 3 (CAN$/unit) 748 809 8% (euro€/unit) 508 532 5% Sales ($M) 4% 202 210 Operating income ($M) (as reported) 5 10 100% (adjusted) 1 100% 5 10 OIBD 1 ($M) 14 19 36% % of sales 7% 9% (adjusted) 1 14 19 36% % of sales 7% 9% For definitions of cert
Slide 10: Uncoated recycled boxboard price chart
Slide 11: Specialty Products performance, Q3 2018
1 Source: RISI Our Performance main variances 1 in sales and operating income for the Specialty Products segment in the third quarter of 2018, compared to the same period of 2017, are shown below:
Slide 12: Specialty Products Q3 results
Sales ($M) -9% 181 164 Operating income ($M) (as reported) 10 9 -10% (adjusted) 1 -20% 10 8 OIBD 1 ($M) (as reported) 15 15 — % of sales 8% 9% (adjusted) 1 15 14 -7% % of sales 8% 9% For definitions of certain sales and operating income variations categories, please refer to the “Financial results f
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Slide 14: Tissue Papers performance, Q3 2018
1 Source: RISI Our Performance main variances 1 in sales and operating income (loss) for the Tissue Papers segment in the third quarter of 2018, compared to the same period of 2017, are shown below:
Slide 15: Tissue Papers Q3 results
Shipments 2 ('000 s.t.) 4% 157 164 Average Selling Price (CAN$/unit) 2,064 2,203 7% Sales ($M) 12% 323 361 Operating income (loss) ($M) (as reported) 9 (11) -222% (adjusted) 1 -200% 11 (11) OIBD 1 ($M) 22 5 -77% % of sales 7% 1% (adjusted) 1 24 5 -79% % of sales 7% 1% For definitions of certain sale
Slide 16: Major capital projects
major capital projects that were initiated, are in progress or were completed in the first nine months of 2018 are as follows: CONTAINERBOARD PACKAGING • Investments for the construction of a new containerboard packaging plant in Piscataway, NJ, USA (please refer to the “Significant Facts and Develo
Slide 17: Liquidity and net debt to adjusted OIBD
Adjusted OIBD 1 (last twelve months) 3.6 Net debt/Adjusted OIBD 1,2 3.2 Liquidity available via the Corporation's credit facilities, along with the expected cash flow generated by its operating activities, will provide sufficient funds to meet our financial obligations and to fulfill our capital exp
Slide 18: Accounting policies and controls and procedures
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS For all the details for this section, please refer to the notes to the unaudited condensed interim consolidated financial statements. CONTROLS AND PROCEDURES EVALUATION OF THE EFFECTIVENESS OF DISCLOSURE CONT
Slide 19: Information for the nine-month periods ended September 30, 2018 and 2017
The sales and operating income variances analysis by segment is shown in each business segment review (refer to pages 36 to 43). Corporation incurred certain specific items in the first nine months of 2018 and 2017 that adversely or positively affected its operating results. Please refer to the “Sup
Slide 20: Containerboard Packaging nine-month results
Shipments 1 ('000 s.t.) 8% 1,029 1,107 Average Selling Price (CAN$/unit) 1,178 1,236 5% — Sales ($M) 13% 1,212 1,368 Operating income ($M) (as reported) 113 297 163% (adjusted) 1 96% 121 237 OIBD 1 ($M) (as reported) 165 359 118% % of sales 14% 26% (adjusted) 1 173 299 73% % of sales 14% 22% For def
Slide 21: Boxboard Europe nine-month results
Shipments 2 ('000 s.t.) -2% 850 833 Average Selling Price 3 (CAN$/unit) 737 825 12% (euro€/unit) 507 537 6% Sales ($M) 10% 626 688 Operating income ($M) (as reported) 23 51 122% (adjusted) 1 113% 24 51 OIBD 1 ($M) (as reported) 48 77 60% % of sales 8% 11% (adjusted) 1 49 77 57% % of sales 8% 11% For
Slide 22: Specialty Products nine-month results
Sales ($M) -10% 542 487 Operating income ($M) (as reported) 37 15 -59% (adjusted) 1 -62% 37 14 OIBD 1 ($M) (as reported) 53 31 -42% % of sales 10% 6% (adjusted) 1 53 30 -43% % of sales 10% 6% For definitions of certain sales and operating income variations categories, please refer to the “Financial
Slide 23: Tissue Papers nine-month results
Shipments 2 ('000 s.t.) 6% 447 476 Average Selling Price (CAN$/unit) 2,166 2,119 -2% — Sales ($M) 4% 967 1,008 Operating income (loss) ($M) (as reported) 34 (22) -165% (adjusted) 1 -158% 38 (22) OIBD ($M) (as reported) 78 25 -68% % of sales 8% 2% (adjusted) 1 82 25 -70% % of sales 8% 2% The $12 mill