Cascades Inc. · TSX:CAS
Cascades — Q2 2018 Earnings Presentation
17 slides from Cascades's earnings presentation, Aug 10, 2018
Slide 1: Adjusted OIBD variance definitions and Containerboard industry
Adjusted OIBD (Operating income) Please refer to the “Supplemental Information on Non-IFRS Measures” section for reconciliation of these figures. Raw Material (Operating income) The impacts of these estimated costs are based on production costs per unit shipped externally or inter-segment, which are
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Slide 3: Our Performance: Containerboard Packaging
1 Source: RISI 2 Source: Fibre Box Association Our Performance The main variances 1 in sales and operating income for the Containerboard Packaging segment in the second quarter of 2018, compared to the same period of 2017, are shown below:
Slide 4: Containerboard Packaging Q2 2018 results
Shipments 2 ('000 s.t.) 3% 375 385 Average Selling Price (CAN$/unit) 1,144 1,234 8% Sales ($M) 11% 428 475 Operating income ($M) (as reported) 30 82 173% (adjusted) 1 143% 35 85 OIBD 1 ($M) 51 102 100% % of sales 12% 21% (adjusted) 1 56 105 88% % of sales 13% 22% 1 For definitions of certain sales a
Slide 5: TéTOHRBHASANUT HOHE
TéTOHRBHASANUT HOHE (mtperweck) mi 2062017 2018
Slide 6: Our Performance: Boxboard Europe
1 Source: CEPI Cartonboard Our Performance The main variances 1 in sales and operating income for the Boxboard Europe segment in the second quarter of 2018, compared to the same period of 2017, are shown below:
Slide 7: Boxboard Europe Q2 2018 results
Shipments 2 ('000 s.t.) -2% 283 276 Average Selling Price 3 (CAN$/unit) 750 840 12% (euro€/unit) 507 546 8% Sales ($M) 9% 213 232 Operating income ($M) (as reported) 13 22 69% (adjusted) 1 69% 13 22 OIBD 1 ($M) 21 30 43% % of sales 10% 13% (adjusted) 1 21 30 43% % of sales 10% 13% 1 For definitions
Slide 8: Recovery and Recycling Q2 2018 results
Sales ($M) -13% 188 164 Operating income ($M) (as reported) 14 4 -71% (adjusted) 1 -71% 14 4 OIBD 1 ($M) (as reported) 20 9 -55% % of sales 11% 5% (adjusted) 1 20 9 -55% % of sales 11% 5% 1 For definitions of certain sales and operating income variations categories, please refer to the “Financial re
Slide 9: Specialty Products Q2 2018 results
Shipments 2 ('000 s.t.) 8% 151 163 Average Selling Price (CAN$/unit) 2,249 2,093 -7% Sales ($M) 1% 338 342 Operating income (loss) ($M) (as reported) 17 (9) -153% (adjusted) 1 -147% 19 (9) OIBD 1 ($M) 33 7 -79% % of sales 10% 2% (adjusted) 1 35 7 -80% % of sales 10% 2% 1 For definitions of certain s
Slide 10: The major capital projects
The major capital projects that were initiated, are in progress or were completed in the first half of 2018 are as follows: CONTAINERBOARD PACKAGING • Investment for the construction of a new containerboard packaging plant in Piscataway, NJ, USA (please refer to the “Significant Facts and Developmen
Slide 11: Adjusted OIBD (last twelve months) and net debt
Adjusted OIBD 1 (last twelve months) 3.6 Net debt/Adjusted OIBD 1,2 3.5 Liquidity available via the Corporation's credit facilities, along with the expected cash flow generated by its operating activities, will provide sufficient funds to meet our financial obligations and to fulfill our capital exp
Slide 12: Summary of significant accounting policies and controls
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS For all the details for this section, please refer to the notes to the unaudited condensed interim consolidated financial statements. CONTROLS AND PROCEDURES EVALUATION OF THE EFFECTIVENESS OF DISCLOSURE CONT
Slide 13: Six-month periods: sales and operating income variances analysis
The sales and operating income variances analysis by segment is shown in each business segment review (refer to pages 36 to 43). The Corporation incurred certain specific items in the first halves of 2018 and 2017 that adversely or positively affected its operating results. Please refer to the “Supp
Slide 14: Containerboard Packaging six-month results
Shipments 1 ('000 s.t.) 12% 660 737 Average Selling Price (CAN$/unit) 1,173 1,215 4% — Sales ($M) 16% 774 896 Operating income ($M) (as reported) 63 203 222% (adjusted) 1 109% 68 142 OIBD 1 ($M) (as reported) 96 243 153% % of sales 12% 27% (adjusted) 1 101 182 80% % of sales 13% 20% 1 For definition
Slide 15: Boxboard Europe six-month results
Shipments 2 ('000 s.t.) -1% 579 574 Average Selling Price 3 (CAN$/unit) 732 833 14% (euro€/unit) 507 539 6% Sales ($M) 13% 424 478 Operating income ($M) (as reported) 18 41 128% (adjusted) 1 116% 19 41 OIBD 1 ($M) (as reported) 34 58 71% % of sales 8% 12% (adjusted) 1 35 58 66% % of sales 8% 12% 1 F
Slide 16: Recovery and Recycling six-month results
Sales ($M) -11% 361 323 Operating income ($M) (as reported) 27 6 -78% (adjusted) 1 -78% 27 6 OIBD 1 ($M) (as reported) 38 16 -58% % of sales 11% 5% (adjusted) 1 38 16 -58% % of sales 11% 5% 1 For definitions of certain sales and operating income variations categories, please refer to the “Financial
Slide 17: Specialty Products six-month results
Shipments 2 ('000 s.t.) 8% 290 312 Average Selling Price (CAN$/unit) 2,221 2,075 -7% — Sales ($M) — 644 647 Operating income (loss) ($M) (as reported) 25 (11) -144% (adjusted) 1 -141% 27 (11) OIBD ($M) (as reported) 56 20 -64% % of sales 9% 3% (adjusted) 1 58 20 -66% % of sales 9% 3% The $12 million