Cascades Inc. · TSX:CAS
Cascades — Investor Presentation (October 2020)
11 slides from Cascades's investor presentation, Oct 5, 2020
Slide 1: Bear Island Containerboard Conversion Project
BEAR ISLAND Ashland, Virginia, US Containerboard Conversion Project Investor Presentation October 5, 2020
Slide 2: Disclaimer
Disclaimer A preliminary short form prospectus of Cascades Inc. (“Cascades” or the “Company”) containing important information relating to the securities described in this presentation has not yet been filed with the securities regulatory authorities in each of the provinces of Canada. A copy of the
Slide 3: Bear Island Containerboard Conversion Project
Bear Island Containerboard Conversion Project ✓ Bear Island newsprint machine is well suited for conversion to high-quality, 100% recycled liner & medium, that will be among the few to offer the lowest basis weight containerboard in N.A. ✓ With annual capacity of 465,000 s.t., the mill will be one o
Slide 4: Project Overview
Project Overview North American Containerboard Mills1 ✓ Bear Island newsprint machine well suited for conversion to recycled containerboard: • Excellent strategic geographic location near Richmond, VA and 100 miles South of Washington, DC Bear Island • Available experienced workforce Virgin Recycled
Slide 5: Observed Trends in Packaging Weight
Observed Trends in Packaging Weight ✓ Cascades has a strong position in the N.A. packaging industry being one of the few N.A. producers/marketers of low basis weight containerboard (as low as 16 lbs) ✓ Lightweight packaging is growing due to increase in e-commerce and resulting trend towards rightsi
Slide 6: Significantly Advances Cascades Strategic Positioning
Significantly Advances Cascades Strategic Positioning • Modernization – optimizes Containerboard platform location of production, cost base & machine width • Geographic positioning – Southwest and Midwest US – will be the most southern mill in our platform • Eco-friendly, highly competitive product
Slide 7: 1st Quartile, Sustainable, Lightweight Production
1st Quartile, Sustainable, Lightweight Production CURRENT CAPACITY: CAPACITY WITH BEAR ISLAND: 1,568 K ST/YR 2,033 K ST/YR (+30%)1 ✓ Recycled capacity will increase to 88% of total containerboard production 16% 12% Recycled ✓ 60% + of manufacturing asset base capacity will Virgin be 1st quartile of
Slide 8: Project Funding from Equity Financing, Internal Cash Flow & Existing Credit Facilities
Project Funding from Equity Financing, Internal Cash Flow & Existing Credit Facilities PROJECT COSTS (in US$ millions) ≤ 2020 2021 2022 TOTAL Site Acquisition $ 35 - - $ 35 Machinery/Engineering/Project Management $ 27 $ 162 $ 89 $ 278 Other Costs/Contingencies $7 $ 31 $ 29 $ 67 TOTAL SPEND $ 691 $
Slide 9: Project Timeline
Project Timeline 2020 2021 2022 2023 START-UP TIMELINE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Q4 2022 Engineering OPERATIONAL Site preparation Order RAMP-UP TARGET Paper Construction Machine • 80% run-rate by end of 2023 Installation • 90% run-rate by end of 2024 Order OCC • 100% run-rate
Slide 10: Robust Strategic, Shareholder Return and Competitive Rationale for Bear Island Project
Robust Strategic, Shareholder Return and Competitive Rationale for Bear Island Project ✓ Significantly advances modernization of N.A. containerboard platform and improves Cascades’ competitiveness in lightweight packaging ✓ Optimizes geographic positioning ✓ Expands 1st quartile competitive producti
Slide 11: Cascades
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