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Q4 2024 FINANCIAL RESULTS February 20, 2025
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2 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 number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Cascades Inc.’s (“Cascades,” “CAS,” the “Company,” the “Corporation,” “us” or “we”) products, the prices and availability of raw materials, changes in the relative values of certain currencies, fluctuations in selling prices and adverse changes in general market and industry conditions. This presentation may also include price indices as well as variance and sensitivity analyses that are intended to provide the reader with a better understanding of the trends related to our business activities. These items are based on the best estimates available to the Corporation. SUPPLEMENTAL INFORMATION ON NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES – SPECIFIC ITEMS The Corporation incurs some specific items that adversely or positively affect its operating results. We believe it is useful for readers to be aware of these items as they provide additional information to measure performance, compare the Corporation’s results between periods, and assess operating results and liquidity, notwithstanding these specific items. Management believes these specific items are not necessarily reflective of the Corporation’s underlying business operations in measuring and comparing its performance and analyzing future trends. Our definition of specific items may differ from that of other corporations and some of these items may arise in the future and may reduce the Corporation’s available cash. They include, but are not limited to, charges for (reversals of) impairment of assets, restructuring gains or costs, loss on refinancing and repurchase of long-term debt, some deferred tax asset provisions or reversals, premiums paid on repurchase of long-term debt, gains or losses on the acquisition or sale of a business unit, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate hedge instruments and option fair value revaluation, foreign exchange gains or losses on long-term debt and financial instruments, fair value revaluation gains or losses on investments, specific items of discontinued operations and other significant items of an unusual, non-cash or non-recurring nature. RECONCILIATION AND USES OF NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES To provide more information for evaluating the Corporation’s performance, the financial information included in this analysis contains certain data that are not performance measures under IFRS Accounting Standards (“non-IFRS Accounting Standards measures”), which are also calculated on an adjusted basis to exclude specific items. We believe that providing certain key performance and capital measures, as well as non-IFRS Accounting Standards measures, is useful to both Management and investors, as they provide additional information to measure the performance and financial position of the Corporation. This also increases the transparency and clarity of the financial information. The following non-IFRS Accounting Standards measures and other financial measures are used in our financial disclosures: Non-IFRS Accounting Standards measures • Adjusted earnings before interest, taxes, depreciation and amortization or EBITDA (A): represents the operating income (as published in the Consolidated Statements of Earnings (Loss) of the Consolidated Financial Statements) before depreciation and amortization excluding specific items. Measure used to assess recurring operating performance and the contribution of each segment on a comparable basis. • Adjusted net earnings: Measure used to assess the Corporation’s consolidated financial performance on a comparable basis. • Adjusted cash flow: Measure used to assess the Corporation’s capacity to generate cash flows to meet financial obligations and/or discretionary items such as share repurchases, dividend increases and strategic investments. • Free cash flow: Measure used to calculate the excess cash the Corporation generates by subtracting capital expenditures (excluding strategic projects) from the EBITDA (A). • Working capital: Measure used to assess the short-term liquidity of the Corporation. Other financial measures • Total debt: Measure used to calculate all the Corporation’s debt, including long-term debt and bank loans. Often put in relation to equity to calculate the debt-to-equity ratio. • Net debt: Measure used to calculate the Corporation’s total debt less cash and cash equivalents. Often put in relation to EBITDA (A) to calculate net debt to EBITDA (A) ratio. Non-IFRS Accounting Standards ratios • Net debt to EBITDA (A) ratio: Ratio used to assess the Corporation’s ability to pay its debt and evaluate financial leverage. • EBITDA (A) margin: Ratio used to assess operating performance and the contribution of each segment on a comparable basis calculated as a percentage of sales. • Adjusted net earnings per common share: Ratio used to assess the Corporation’s consolidated financial performance on a comparable basis. • Ratio of net debt / (total equity and net debt): Ratio used to evaluate the Corporation’s financial leverage and the risk to Shareholders. • Working capital as a percentage of sales: Ratio used to assess the Corporation’s operating liquidity performance. • Adjusted cash flow per common share: Ratio used to assess the Corporation’s financial flexibility. • Free cash flow ratio: Ratio used to measure the liquidity and efficiency of how much more cash the Corporation generates than it uses to run the business by subtracting capital expenditures (excluding strategic projects) from the EBITDA (A) calculated as a percentage of sales. Non-IFRS Accounting Standards measures and other financial measures are mainly derived from the consolidated financial statements, but do not have meanings prescribed by IFRS Accounting Standards. These measures have limitations as an analytical tool and should not be considered on their own or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. In addition, our definitions of non-IFRS Accounting Standards measures and other financial measures may differ from those of other corporations. Any such modification or reformulation may be significant. All amounts in this presentation are in Canadian dollars unless otherwise indicated. Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis,available on SEDAR+ at www.sedarplus.ca. DISCLAIMER
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3 SUMMARY OF FINANCIAL RESULTS (In millions of CAN$, except per common share amounts, where noted) 2024 2023 Q4 2024 Q3 2024 Q4 2023 Financial Results Sales 4,701 4,638 1,211 1,201 1,138 Operating income (loss) 95 40 16 36 (24) Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 501 558 146 140 122 Margin (EBITDA (A) / Sales (%))1 10.7% 12.0% 12.1% 11.7% 10.7% Net earnings (loss) (31) (76) (13) 1 (57) Adjusted net earnings1 60 109 25 27 5 Net earnings (loss) per common share ($0.31) ($0.76) ($0.13) $0.01 ($0.57) Adjusted net earnings per common share1 $0.60 $1.08 $0.25 $0.27 $0.05 Net debt1 2,096 1,882 2,096 2,039 1,882 Net debt / EBITDA (A) ratio1 4.2x 3.4x 4.2x 4.3x 3.4x (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca.
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4 OVERVIEW OF CONSOLIDATED PROFITABILITY DRIVERS Consolidated EBITDA (A)1 Variation (in millions of Canadian dollars) Quarter-over-Quarter Q4 2024 vs Q3 2024 Year-over-Year Q4 2024 vs Q4 2023 2024 vs 2023 Average selling prices $8 million $42 million ($39 million) Operating costs ($8 million) ($4 million) $30 million Volume & Mix ($7 million) $1 million $11 million Raw Materials $13 million ($15 million) ($59 million) TOTAL $6 million $24 million ($57 million) (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca.
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5 RECYCLED FIBRE COSTS - INDEX LIST PRICES White grades (Basket of products) Brown grades (OCC) ($ US/s.t.) Current (Feb-25) 129 78 Recycled Fibre Prices Q4 2024 Q3 2024 Q4 2023 Q4/Q4 Q4/Q3 White grades - Basket of products (Northeast average)1 124 134 144 (14)% (7)% Brown grades - OCC No. 11 (Northeast average) 83 108 83 —% (23)% Source: RISI. (1) Basket of white recycled paper, including grades such as SOP, Hard White Envelope and Coated Book Stock; Northeast average. Weighted average based on Cascades’ consumption of each grade. OCC: • Favourable market conditions seen throughout Q4, with higher seasonal generation and continuing soft export activity leading to good fibre availability, index price decreases in October, November and December • Stable market conditions expected in the coming months, with lower seasonal fibre generation SOP: • Relatively balanced with readily availability fibre volume leading to a small decrease in average index pricing in the quarter • Began to see tighter supply beginning in late December on higher demand levels; Continue to see this dynamic in early 2025 Nov 19 Feb 20 May 20 Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22 Nov 22 Feb 23 May 23 Aug 23 Nov 23 Feb 24 May 24 Aug 24 Nov 24 Feb-25 0 25 50 75 100 125 150 175 200 225 250 275 300
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6 VIRGIN PULP COSTS - INDEX LIST PRICES Nov 19 Feb 20 May 20 Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22 Nov 22 Feb 23 May 23 Aug 23 Nov 23 Feb 24 May 24 Aug 24 Nov 24 800 1,000 1,200 1,400 1,600 1,800 NBSK NBHK Virgin Pulp Prices Q4 2024 Q3 2024 Q4 2023 Q4/Q4 Q4/Q3 NBSK (Canadian sources delivered to Eastern US) 1,687 1,762 1,312 29% (4)% NBHK (Canada/US sources delivered to Eastern US) 1,298 1,467 1,083 20% (12)% ($ US/metric ton) Current (Jan-25) 1,710 1,235 Source: RISI VIRGIN PULP: • Market conditions were in line with expectations in Q4, with an abundant supply of BEK (eucalyptus) leading to index price reduction; as expected, relative stability on NBSK • Saw pulp pricing gap between China and North America narrow toward end of Q4 and is it now more aligned with SA pulp mills' net equivalent basis • We expect more stable market environment for BHK and BEK in coming months • Average prices down sequentially, but remain higher compared to prior year levels
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7 Results Change vs. Q4 2024 Q3 2024 Q4 2023 Shipments (’000 s.t.) 415 (1)% 3% Average selling price (CAN$/unit) 1,480 2% 6% Sales (M$) 613 —% 9% EBITDA (A)1 (M$) 104 16% 55% % of sales 17.0% Comments on sequential performance PACKAGING PRODUCTS / CONTAINERBOARD è Total shipments decreased by 1% sequentially. Shipments of parent rolls decreased by 1% and those of converted products decreased by 2% compared to the third quarter. This reflects usual seasonal demand. è The average selling price increased by 2% quarter-over-quarter. This reflects the average depreciation of the Canadian dollar compared to the US dollar and the beneficial result realized from announced selling price increases, partially offset by a less favourable sales mix. è Sales were stable sequentially, as the benefit from the higher average selling price, as explained above, was offset by lower volumes. è Q4 EBITDA (A) 1 increased by 16% sequentially, reflecting lower recycled fibre costs (+$13 M) and higher average selling prices (+$4 M). These were offset by the negative impact of lower volume (-$4 M). PLANNED DOWNTIME (in st) Q1 2024 Q2 2024** Q3 2024 Q4 2024 2024* Q1 2025 F Q2 2025 F Q3 2025 F Q4 2025 F 2025 F Maintenance/Capital 13,600 35,000 13,400 15,200 77,200 18,300 15,200 10,900 11,900 56,300 Economic/Inventory Management 6,200 - - - 6,200 - - - - - TOTAL 19,800 35,000 13,400 15,200 83,400 18,300 15,200 10,900 11,900 56,300 (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. *Medium production downtime was taken on machine #2 at the Niagara Falls facility in 2023 prior to its permanent closure at the beginning of May. **A total of ~30,000 s.t. of additional production downtime related to inventory management was taken in Q4 2023 (compared to 31,000 s.t. in Q4 2022), and is not included in figures above. ***An additional ~12,000 s.t. of additional production downtime related to inventory management is planned for Q1 2024. * Trenton closed 3rd week of January. Figures above exclude this mill's 175,000 st of annual capacity. ** 27,400 s.t. of maintenance had been planned in Q2, including 11,000 s.t. at Greenpac to coincide with maintenance occurring at its steam supplier. An additional 7,600 s.t. of downtime were taken in Q2 at the Greenpac and Bear Island mills, the former due to a prolongation of downtime at its steam supplier, the latter due to a mechanical break, following the annual planned maintenance shut down, which has been fully repaired.
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8 PACKAGING PRODUCTS / CONTAINERBOARD è Sequential Q4 shipments of converted products: Canada -2.7% (vs. market -1.7%); US +3.7% (vs. market -1.1%) è Year-over-year Q4 shipments of converted products: Canada -1.5% (vs. market +4.8%); US -1.4% (vs. market -0.2%) è Full year 2024 (vs.prior year) shipments of converted products: Canada +3.7% (vs. market +5.1%); US +3.6% (vs. market 0.1%) è Packaging shipments/day: Q4/Q3: +2.4% (vs. Canadian market +0.9%, US market +2.2%) Q4/Q4: -1.3% (vs. Canadian market +2.2%, US market -0.2%) 2024 vs 2023: +4% (vs. Canadian market +5%, US market -0.1%) (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (2) Utilization rate defined as total manufacturing shipments divided by practical capacity. 67 50 60 90 104 12% 9% 10% 15% 17% EBITDA (A) EBITDA (A) / Sales % Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 402 412 415 421 415 84% 93% 88% 91% 88% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly Shipments (’000 s.t. and % capacity utilization2) Quarterly EBITDA (A)1 (M CAN$) 561 556 585 610 613 $1,394 $1,349 $1,410 $1,447 $1,480 Sales (M CAN$) Average selling price (CAN$) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly Sales and Average Selling Price
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9 Results Change vs. Q4 2024 Q3 2024 Q4 2023 Sales (M$) 175 4% 9% EBITDA (A)1 (M$) 28 4% 47% % of sales 16.0% Comments on sequential performance PACKAGING PRODUCTS / SPECIALTY PRODUCTS è Sales increased by $6 M or 4% sequentially following higher average selling prices and the depreciation of the Canadian dollar compared to the US dollar. è EBITDA (A)1 of $28 M increased by $1 M sequentially. This reflects higher realized spreads, notably in cardboard products. (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. 19 25 26 27 28 12% 16% 16% 16% 16% EBITDA (A) EBITDA (A) / Sales % Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 160 160 167 169 175 Sales (M CAN$) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly EBITDA (A)1 (M CAN$)Quarterly Sales
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10 Results Change vs. Q4 2024 Q3 2024 Q4 2023 Shipments (’000 s.t.) 121 (1)% —% Average selling price (CAN$/unit) 3,250 1% 1% Sales (M$) 394 1% 1% EBITDA (A)1 (M$) 45 5% (26)% % of sales 11.4% Comments on sequential performance TISSUE PAPERS è Shipments decreased by 1% on a sequential basis. This reflects a 2% decrease in Away- from-Home converted product shipments, and a 1% decrease in Retail product shipments. è The average selling price increased by 1% sequentially, reflecting a more favourable FX and higher selling prices, partially offset by an unfavourable impact from a higher proportion of parent rolls in the sales mix. è Sales increased by 1% on a sequential basis, reflecting the combined impact of the higher average selling price, mentioned above, offset by lower volume. è EBITDA (A) 1 increased by 5% sequentially, reflecting higher selling prices and lower raw material costs offset by slightly lower volumes. (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. Cases Sold (millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 14.5 15.6 16.5 15.8 62.4 15.2 16.1 16.0 15.7 63.0
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11 TISSUE PAPERS è Q4 2024 Shipments of Converted Products: Retail tissue 10.5 M cases Q4 vs. Q3: -0.5% Q4 vs. Q4: +0.5% Away-from-Home tissue 5.2 M cases Q4 vs.Q3: -2.7% Q4 vs.Q4: -1.7% è 2024 Shipments of Converted Products: Retail tissue 42.4 M cases 2024 vs. 2023: +2.9% Away-from-Home tissue 20.6 M cases 2024 vs.2023: -2.6% 61 50 54 43 45 16% 14% 14% 11% 11% EBITDA (A) EBITDA (A) / Sales % Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly EBITDA (A)1 (M CAN$) 121 115 122 122 121 96% 95% 93% 93% 98% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly Shipments (’000 s.t. and % capacity utilization2) (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca.(2) Utilization rate defined as total manufacturing tonnage divided by practical capacity. 390 367 397 390 394 $3,224 $3,206 $3,236 $3,210 $3,250 Sales (M CAN$) Average selling price (CAN$) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Quarterly Sales and Average Selling Price
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12 Q4 2024 EBITDA (A)1 TO OPERATING INCOME RECONCILIATION 146 8 1 (8) (55) (76) 16 EBITDA (A) Other gain Unrealized gain on financial instruments Restructuring costs Impairment charges Depr. & Amort. Operating income0 40 80 120 160 (M CAN$) (M CAN$) Container- board Specialty Products Tissue Papers Corporate, Recovery and Recycling activities Total Operating income (loss) 69 (11) 4 (46) 16 Depreciation and amortization 41 7 14 14 76 Impairment charges — 32 23 — 55 Other gain (7) — — (1) (8) Restructuring costs 2 — 4 2 8 Unrealized gain on financial instruments (1) — — — (1) EBITDA (A)1 104 28 45 (31) 146 (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. 1
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13 NET EARNINGS (LOSS) - AS REPORTED vs ADJUSTED1 NET EARNINGS (LOSS) NET EARNINGS (LOSS) PER COMMON SHARE2 (In millions of Canadian dollars, except per common share amounts) Q4 2024 Q4 2024 As reported (13) ($0.13) Specific items: Restructuring costs 8 $0.06 Other gain (8) ($0.07) Impairment charges 55 $0.41 Foreign exchange loss on long-term debt & financial instruments 1 $0.01 Unrealized gain on financial instruments (1) ($0.01) Unrealized gain on interest rate hedge instruments (2) ($0.02) Tax effect on specific items, other tax adjustments and attributable to non-controlling interests2 (15) — 38 $0.38 Adjusted2 25 $0.25 (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (2) Specific amounts per share are calculated on an after-tax basis and are net of the portion attributable to non-controlling interest.
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14 QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 (1) After-tax variance normalized at 26% tax rate, except for Income tax variance column. (2) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. $ cents (0.57) 0.62 0.05 0.18 0.04 0.02 (0.02) (0.02) 0.25 (0.38) (0.13) EPS reported Q4 2023 Specific items Adjusted EPS Q4 2023 EBITDA (A) Income tax variance Share of results of JVs and associates Non- controlling interests Depreciation & amortization Adjusted EPS Q4 2024 Specific items EPS reported Q4 2024 -0.50 -0.25 0.00 0.25 0.50 2 22
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15 QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 $ cents 0.01 0.26 0.27 0.04 (0.01) (0.01) (0.04) 0.25 (0.38) (0.13) EPS reported Q3 2024 Specific items Adjusted EPS Q3 2024 EBITDA (A) Income tax variance Non- controlling interests Depreciation & amortization Adjusted EPS Q4 2024 Specific items EPS reported Q4 2024 -0.20 -0.10 0.00 0.10 0.20 0.30 2 2 (1) After-tax variance normalized at 26% tax rate, except for Income tax variance column. (2) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. 2
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16 CASH FLOW OVERVIEW 2022 2023 2024 (In millions of CAN$, except per common share amounts) Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Cash flow from operations 260 89 117 100 91 397 32 78 76 109 295 Specific items1 12 1 5 6 12 24 14 17 10 20 61 Adjusted cash flow from operations2 272 90 122 106 103 421 46 95 86 129 356 Including: Net financing expense paid (87) (44) (18) (47) (20) (129) (47) (18) (48) (22) (135) Payments for property, plant and equipment & other assets, lease obligations payments, net of disposals (542) (153) (118) (71) (61) (403) (61) (58) (49) (49) (217) Dividends3 (61) (15) (18) (36) (15) (84) (15) (17) (16) (15) (63) Adjusted cash flow generated (used)2 (331) (78) (14) (1) 27 (66) (30) 20 21 65 76 Adjusted cash flow generated (used) per common share2 ($3.29) ($0.78) ($0.14) ($0.01) $0.27 ($0.66) ($0.30) $0.20 $0.21 $0.64 $0.75 The year-over-year increase in Adjusted Cash Flow2 was driven by lower capital investments and higher cash flow from operations compared to the prior year. (1) Specific items: premiums paid on the repurchase of long-term debt and restructuring costs. (2) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (3) Paid to our shareholders and to non- controlling interests.
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17 169 312 227 213 330 532 289 148 175 62 184 66 84 217 426 197 59 22 20 18 22 37 29 25 15 61 81 104 85 50 41 35 44 24 27 39 22 26 36 32 30 Containerboard Specialty Products Tissue Papers Corporate, Recovery and Recycling 2017 2018 2019 2020 2021 2022 2023 2024 2025F NEW CAPITAL INVESTMENTS (in millions of Canadian dollars, excluding new leases, disposal of assets and accounts payable variation) (1) Amount is subject to change depending on business and/or economic conditions. 2025 Forecast: ~ $175 M1 ~
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18 2,039 (109) (45) (16) 5 15 45 48 114 2,096 Net debt as of September 30, 2024 Cash flow from oper. activities Changes in non- cash working capital components Proceeds from disposals of property, plant and equipment Investments and others Dividends paid & change in capital stock Payments for property, plant and equipment Right-of-use assets acquisitions F/X CAN$ Net debt as of December 31, 2024 1,800 1,900 2,000 2,100 2,200 NET DEBT1 RECONCILIATION - Q4 2024 Q3 2024 Q4 2024 $477 million LTM EBITDA (A)1 $501 million 4.3x Net debt / LTM EBITDA (A) ratio1 4.2x (M CAN$) Net debt increase reflects the less favourable exchange rate, new right-of-use assets, payments for PPE and other assets and dividends paid, which more more than offset stronger cash flow from operations, changes in working capital requirements and proceeds from disposals of PPE (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca.
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19 1,882 (295) (34) 23 25 64 121 149 161 2,096 Net debt as of December 31, 2023 Cash flow from oper. activities Proceeds from disposals of property, plant and equipment Changes in non- cash working capital components Investments and others Dividends paid & change in capital stock Right-of-use assets acquisitions F/X CAN$ Payments for property, plant and equipment Net debt as of December 31, 2024 1,500 1,750 2,000 NET DEBT1 RECONCILIATION - 2024 2023 2024 $558 million LTM EBITDA (A)1 $501 million 3.4x Net debt / LTM EBITDA (A) ratio1 4.2x (M CAN$) Net debt increase reflects the less favourable exchange rate, new right-of-use assets, payments for PPE and other assets, dividends paid and working capital requirements, which more than offset stronger cash flow from operations and proceeds from disposals of PPE (1) Please click here for supplemental information on non-IFRS Accounting Standards measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca.
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20 1 STRENGTHEN OUR CULTURE OF EXCELLENCE TO DRIVE PROFITABILITY • 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, supported by rigorous operational safety 2 ALIGN OPERATIONAL & COMMERCIAL STRUCTURE • Simplify operational and organizational structure • Recalibration of product offering • Optimization of commercial approach - partner of choice 3 CAPITAL DEPLOYMENT PRIORITIZING DEBT REDUCTION • Capital expenditures <$200 M ($175 M in 2025) • Monetization of unused or redundant assets; targeting proceeds of ~$80 M STRATEGIC PRIORITY AREAS: 2025 - 2026
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21 64% 59% 49% 51% 54% 46% 41% 50% 51% 54% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Debt / Net Debt + Total Equity1 4.7x 4.6x 4.3x 5.8x 6.0x 6.7x 4.6x 4.9x 4.5x 3.6x 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4.0x 3.8x 3.6x 3.5x3.25x 2.5x 3.47x 5.23x 3.37x 4.18x 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Long-Term Debt Maturities (as of December 31, 2024) Net Debt / EBITDA (A)1,3 Interest Coverage Ratio2,3 CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Bank debt financial covenant ratios: Net funded debt to capitalization ‹ 65% (currently at 51.16 %), interest coverage ratio › 2.25x (currently at 3,46 x). (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (2) EBITDA (A) 1 to interest on long-term debt, amortization of financing costs, other interest and banking fees. (3) Pro-forma up to 2018 to include business acquisitions on a LTM basis, if applicable. 67 287 175 296 649 644 1 year > 1 year Jan. 2025 2026 2027 2028 Leases - Subsidiaries Subsidiaries debts Revolving credit facility Unsecured senior notes Leases - Non recourse Revolving credit facility without recourse - Greenpac Term loan
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22 APPENDIX
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23 SUMMARY OF QUARTERLY FINANCIAL RESULTS & KPIs (In millions of CAN$, except per common share amounts, where noted) 2022 2023 2024 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Financial Results Sales 4,466 1,134 1,168 1,198 1,138 4,638 1,109 1,180 1,201 1,211 4,701 Operating income (loss) 33 (80) 64 80 (24) 40 9 34 36 16 95 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 376 134 141 161 122 558 103 112 140 146 501 Margin (EBITDA (A) / Sales (%))1 8.4% 11.8% 12.1% 13.4% 10.7% 12.0% 9.3% 9.5% 11.7% 12.1% 10.7% Net earnings (loss) (34) (75) 22 34 (57) (76) (20) 1 1 (13) (31) Adjusted net earnings (loss)1 37 33 26 45 5 109 — 8 27 25 60 Net earnings (loss) per common share ($0.34) ($0.75) $0.22 $0.34 ($0.57) ($0.76) ($0.20) $0.01 $0.01 ($0.13) ($0.31) Adjusted net earnings (loss) per common share1 $0.37 $0.32 $0.27 $0.44 $0.05 $1.08 $— $0.08 $0.27 $0.25 $0.60 Key Performance Indicators Total Shipments2 (’000 s.t.) 2,027 507 532 563 523 2,125 527 537 543 536 2,143 LTM Working Capital (% LTM sales)1 10.5% 10.6% 10.6% 10.3% 9.9% 9.9% 9.8% 9.5% 9.2% 9.6% 9.6% (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report , Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (2) Not including the Specialty Products segment.
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24 YEAR-OVER-YEAR SALES RECONCILIATION 1,138 42 23 21 (13) 1,211 1,100 1,150 1,200 1,250 (M CAN$) Sales Q4 2023 Price Volume and other items F/X CAN$ Mix Sales Q4 2024 Containerboard 561 37 17 10 (12) 613 Specialty Products 160 8 3 4 — 175 Tissue Papers 390 (3) 1 7 (1) 394 Corporate, Recovery and Recycling activities & Elim. 27 — 2 — — 29 Total 1,138 42 23 21 (13) 1,211 (M CAN$) +6%
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25 YEAR-OVER-YEAR EBITDA (A)1 RECONCILIATION (24) 73 73 122 37 9 (6) (16) 146 (54) (76) 16 Q4 2023 Operating loss Depr. & Amort. Specific Items Q4 2023 EBITDA (A) Container- board Specialty Products Corporate, Recovery activities Tissue Papers Q4 2024 EBITDA (A) Specific Items Depr. & Amort. Q4 2024 Operating income -50 0 50 100 150 200 + Higher realized spread + Lower production costs (M CAN$) - Higher production costs partially offset by lower energy and transportation costs - Higher raw material costs - Lower selling prices and volume (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. + Higher selling prices - Higher raw material costs + Lower operating costs and higher volume partially offset by a less favourable sales mix 1 1 - FX loss on w/c; Higher US insurance health costs + Higher contribution from Recovery operations
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26 SEQUENTIAL SALES RECONCILIATION 1,201 19 8 (4) (13) 1,211 1,175 1,200 1,225 1,250 (M CAN$) Sales Q3 2024 F/X CAN$ Price Mix Volume and other items Sales Q4 2024 Containerboard 610 10 4 (1) (10) 613 Specialty Products 169 3 2 — 1 175 Tissue Papers 390 6 2 (3) (1) 394 Corporate, Recovery and Recycling activities & Elim. 32 — — — (3) 29 Total 1,201 19 8 (4) (13) 1,211 (M CAN$) +1%
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27 SEQUENTIAL EBITDA (A)1 RECONCILIATION 36 70 34 140 14 2 1 (11) 146 (54) (76) 16 Q3 2024 Operating income Depr. & Amort. Specific Items Q3 2024 EBITDA (A) Container- board Tissue Papers Specialty Products Corporate, Recovery activities Q4 2024 EBITDA (A) Specific Items Depr. & Amort. Q4 2024 Operating income 0 50 100 150 (1) Please click here for supplemental information on non-IFRS Accounting Standards measures and other financial measures available on pages 48 to 54 of our 2024 Annual Report, Management Discussion & Analysis, available on SEDAR+ at www.sedarplus.ca. (M CAN$) + Higher selling prices, lower raw material costs - Lower volume offset by less favourable mix + Slightly positive contribution from other impacts + Higher selling prices and lower raw material costs - Slightly lower volume - Higher production costs partially offset by lower energy and transportation costs 1 1 + Higher realized spread - Lower volume - Lower contribution from Recovery operations - FX loss on w/c; Higher US insurance health costs
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28 COST OF SALES, SELLING AND ADMINISTRATIVE EXPENSES (In millions of Canadian dollars) 2024 2023 Q4 2024 Q3 2024 Q4 2023 Cost of sales Raw materials 1,690 1,570 434 448 390 Wages and benefits 782 773 200 190 194 Energy 210 231 54 51 53 Delivery 534 540 131 132 139 Other 640 617 163 154 149 Depreciation and amortization 282 272 76 70 73 4,138 4,003 1,058 1,045 998 Selling and administrative expenses Wages and benefits 304 309 77 77 79 Information technology, publicity, marketing and other 40 40 6 9 12 344 349 83 86 91
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29 Tissue Papers - Selected Products Specialty Products - Selected ProductsContainerboard - Selected Products SELECTED REFERENCE PRICES Linerboard Corrugating medium Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 Nov-24 600 700 800 900 1,000 Current (Jan-25) 905 795 (US$/s.t.) Uncoated recycled folding Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 Nov-24 600 700 800 900 1,000 1,100 1,200 Virgin parent rolls Recycled parent rolls May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 Nov-24 1,0001,1001,2001,3001,4001,5001,6001,7001,800 Current (Jan-25) 1,070 Current (Dec-24) 1,472 1,145 (US$/s.t.) (US$/s.t.) Source: RISI
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30 SELECTED REFERENCE PRICES AND FIBRE COSTS 2022 2023 2024 2024 vs 2023 These indexes should only be used as an indicator of trends and they may be different than our actual selling prices or purchasing costs. Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year (units) (%) Selling Prices (average) PACKAGING PRODUCTS Containerboard (US$/short ton) Linerboard 42-lb. unbleached kraft, Eastern US (open market) 920 872 852 845 832 850 852 878 905 905 885 35 4% Corrugating medium 26-lb. semichemical, Eastern US (open market) 845 762 728 715 702 727 735 768 795 795 773 46 6% Specialty Products (US$/short ton) Uncoated recycled boxboard - bending chip, 20-pt. (series B) 1,073 1,053 1,040 1,040 1,020 1,038 1,020 1,040 1,063 1,070 1,048 10 1% TISSUE PAPERS (US$/short ton) Parent rolls, recycled fibres (transaction) 1,266 1,269 1,233 1,196 1,190 1,222 1,194 1,188 1,180 1,150 1,178 (44) (4%) Parent rolls, virgin fibres (transaction) 1,594 1,572 1,489 1,394 1,404 1,465 1,449 1,530 1,544 1,487 1,503 38 3% Raw Material Prices (average) RECYCLED PAPER North America (US$/short ton) Sorted residential papers, No. 56 (SRP - Northeast average) 81 18 18 28 48 28 73 88 93 69 80 52 186% Old corrugated containers, No. 11 (OCC - Northeast average) 105 33 47 59 83 55 101 110 108 83 100 45 82% Sorted office papers, No. 37 (SOP - Northeast average) 235 222 183 142 135 170 138 128 125 115 127 (43) (25%) VIRGIN PULP (US$/metric ton) Northern bleached softwood kraft, Canada 1,704 1,675 1,510 1,293 1,312 1,448 1,440 1,697 1,762 1,687 1,646 198 14% Bleached hardwood kraft, mixed, Canada/US 1,514 1,523 1,277 1,023 1,083 1,227 1,223 1,437 1,467 1,298 1,356 129 11% Bleached hardwood kraft - eucalyptus, Brazil 1,517 1,533 1,280 1,025 1,093 1,233 1,242 1,488 1,505 1,308 1,386 153 12% Source: RISI
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For more information: www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investor@cascades.com