CASCADES INC. Review of Financial Results November 6,
DISCLAIMER 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 the Corporation s 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 management of the Corporation. The financial information included in this presentation also contains certain data that are not measures of performance under IFRS ( non-ifrs measures ). For example, the Corporation uses earnings before interest, taxes, depreciation and amortization (EBITDA) because it is the measure used by management to assess the operating and financial performance of the Corporation s operating segments. Such information is reconciled to the most directly comparable financial measures, as set forth in the Supplemental Information on Non-IFRS Measures section of our most recent quarterly report or annual report. Specific items are defined as items such as charges for or reversal of impairment of assets, for facility or machine closures, accelerated depreciation of assets due to restructuring measures, debt restructuring charges, gains or losses on disposal or acquisition of business units, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature. All amounts in this presentation are in Canadian dollars unless otherwise indicated. 2
OPENING REMARKS
SUMMARY OF FINANCIAL RESULTS EBITDA (% of sales) EPS 1 1 125 100 75 50 25 0 74 69 66 80 95 100 77 91 97 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% $0.24 $0.16 $0.08 $0.00 $(0.08) $(0.16) $0.09 $0.07 $0.05 $(0.04) $(0.06) $0.19 $0.01 $0.08 $0.04 (In millions of CAN$, except amount per share) Year YTD Financial results 1 Sales 845 916 932 891 3,584 921 966 964 2,851 Excluding specific items EBITDA 66 80 95 100 341 77 91 97 265 Net earnings (loss) (4) 8 7 18 29 1 7 4 12 Net earnings (loss) per share $(0.04) $0.09 $0.07 $0.19 $0.31 $0.01 $0.08 $0.04 $0.13 Cash flow from operations (adjusted) 45 40 81 57 223 59 56 2 2 98 213 EBITDA up 7% sequentially; East Angus kraft paper mill reclassified as discontinued operations Note 1 EBITDA and net earnings excluding specific items. Adjusted to exclude discontinued operations of the Fine Papers division, the Djupafors and East Angus mills. Note 2 Excluding premium paid on the refinancing of senior notes totaling $20M in and $11M in. 4
HISTORICAL SEGMENTED EBITDA 1 Containerboard Boxboard Europe (% of sales) (% of sales) 56 42 28 14 26 25 25 33 42 46 33 43 50 20% 15% 10% 5% 28 21 14 7 6 12 11 12 11 23 24 20 14 16% 12% 8% 4% 0 0% 0 0% Specialty Products Tissue Papers (% of sales) (% of sales) 16 12 8 12 6 9 11 12 9 8 10 12 12% 9% 6% 44 33 22 35 31 29 33 39 32 20 23 32 20% 15% 10% 4 3% 11 5% 0 0% 0 0% Note 1: EBITDA excluding specific items. Adjusted to exclude discontinued operations of the Fine Papers division, the Djupafors and East Angus mills. 5
SEGMENTED EBITDA WATERFALLS Containerboard Boxboard Europe EBITDA - Selling Prices & Mix Energy CAN$ Acqu. & Divest. Other Costs Raw Materials Volume EBITDA - EBITDA - Energy Selling Prices & Mix CAN$ Acqu. & Divest. Raw Materials Other Costs Volume EBITDA - 55 50 45 43 6 1 1 - - - (1) 50 27 24 21 20 2 - - - - 40 35 30 18 15 12 (3) (5) 14 25 9 Increase in sales of high value-added products Fire incidents resulted in an estimate of $2M in margin loss Impact of white energy certificate Seasonality in Europe and Santa Giustina rebuild Specialty Products Tissue Papers EBITDA - CAN$ Volume Selling Prices & Mix Acqu. & Divest. Other Costs Energy Raw Materials EBITDA - EBITDA - Volume Other Costs Energy CAN$ Acqu. & Divest. Selling Prices & Mix Raw Materials EBITDA - 16 14 12 10 8 10 2 - - - - - - 12 40 36 32 28 24 23 8 3 2 1 - - (5) 32 6 20 4 Volume increase in the Increase of external purchases Favorable FX rate Canadian retail market of rolls and virgin pulp 6 EBITDA excluding specific items. Adjusted to exclude discontinued operations of the Fine Papers division, the Djupafors and East Angus mills. 16
July 11 Oct 11 Jan 12 Apr 12 July 12 Oct 12 Jan 13 Apr 13 July 13 Oct 13 Jan 14 Apr 14 July 14 Oct 14 July 11 Oct 11 Jan 12 Apr 12 July 12 Oct 12 Jan 13 Apr 13 July 13 Oct 13 Jan 14 Apr 14 July 14 Oct 14 RAW MATERIAL COSTS (US$/ton) 300 250 Recycled Fiber North American List Prices Current (October) (US$/ton) 1,100 1,000 Virgin Pulp Prices Current (October) 1,030 200 150 160 900 800 835 100 95 700 50 600 White grades (SOP) Brown grades (OCC) NBSK NBHK OBM Average Quarterly List Prices - - - / / Brown grades - OCC No. 11 (Northeast) 115 108 100-13% -8% White grades - SOP No. 37 (Northeast) 152 160 160 +5% +0% Virgin Pulp Prices NBSK (Canadian sources delivered to US East) 947 1030 1030 +9% +0% NBHK (Canada/US sources delivered to US East) 873 873 843-3% -3% Source: RISI. Increased OCC supply as mill closures have led to lower prices 7
KEY PERFORMANCE INDICATORS (KPIs) 7% decrease in manufacturing shipments partially due to Santa Giustina rebuild Containerboard: 94% Boxboard Europe: 90% Spec. Prod.: 78% Tissue Papers: 100% ('000 s.t.) Total Shipments 1 Capacity Utilization Rate (Manufacturing only) 2 900 800 700 739 743 766 802 781 755 770 801 788 95% 92% 89% 87% 88% 91% 93% 88% 87% 90% 91% 91% 600 86% 500 83% 11.0% LTM Return on Assets 16.0% LTM Working Capital (% of LTM Sales) 2 2 10.0% 9.0% 8.0% 7.5% 8.1% 8.0% 8.0% 8.5% 9.3% 9.5% 9.6% 9.9% 14.0% 12.0% 10.0% 14.8% 14.4% 14.0% 13.5% 13.1% 12.9% 12.9% 12.7% 12.6% 7.0% 8.0% Decrease in shipments due to seasonality and machine rebuild in Europe Note 1 Excluding discontinued operations. Note 2 Including discontinued operations. Excluding the Fine Papers division starting from. Please refer to the Annual Report and quarterly report for the definition of the KPIs. 8
FINANCIAL REVIEW
SALES RECONCILIATION 1,020 1,000 980 960 32 10 +3% - (5) (5) 964 940 932 0 Sales - CAN$ Volume Corp. Elim. Selling Prices & Mix Acqu. & Disposals Sales - Containerboard 353 6 2 10 (5) 366 Boxboard Europe 183 9 6 1 (6) 193 Specialty Products 142 5 3 (3) (2) 145 Tissue Papers 279 11 (1) (7) 282 Corporate (25) 1 2 (22) Total 932 32 10 (5) (5) 964 Improvement due to favourable FX and higher shipments of packaging products Adjusted to exclude discontinued operations of the Fine Papers division, the Djupafors and East Angus mills. 10
EBITDA VARIANCE ANALYSIS 115 110 105 8 5 4 +2% 2 - (5) 100 95 95 (12) 97 0 EBITDA - CAN$ Other Costs Volume Energy Acqu. & Disposals Selling Prices & Mix Raw Materials EBITDA - Containerboard 42 2 (3) 10 (1) 50 Boxboard Europe 11 1 1 2 3 (6) 2 14 Specialty Products 12 3 2 2 (2) (5) 12 Tissue Papers 39 4 5 (1) (7) (8) 32 Corporate (9) (2) (11) Total 95 8 5 4 2 (5) (12) 97 1 FX, volume and energy mostly offset by higher raw material costs EBITDA excluding specific items. Adjusted to exclude discontinued operations of the Fine Papers division, the Djupafors and East Angus mills. 1 Raw materials include fibre, parent rolls used by converting operations as well as transportation costs. 11
EBITDA VARIANCE ANALYSIS 110 105 100 95 90 91 6 4 2 +7% 2 - (3) (5) 97 0 EBITDA - Selling Prices & Mix Energy Volume CAN$ Acqu. & Disposals Other Costs Raw Materials EBITDA - Containerboard 43 6 1 (1) 1 50 Boxboard Europe 20 2 (5) (3) 14 Specialty Products 10 2 12 Tissue Papers 23 2 8 1 3 (5) 32 Corporate (5) (1) (2) (3) (11) Total 91 6 4 2 2 (3) (5) 97 1 Gains on selling price, energy and volume more than offset higher production and raw material costs EBITDA excluding specific items. 1 Raw materials include fibre, parent rolls used by converting operations as well as transportation costs. 12
QUARTERLY EPS VARIANCE - - Excluding specifics Specifics As reported Excluding specifics Specifics As reported EBITDA 91 (43) 48 97 1 98 Depreciation (46) (46) (45) (45) EBIT and others 45 (43) 2 52 1 53 Financing expenses (27) (44) (71) (23) (23) Interest expense on employee future benefits (1) (1) (2) (2) FX gain (loss) on LT debt and fin. Inst. 0 13 13 0 (24) (24) Share of results of associates and JVs 0 (2) (2) (1) 2 1 Profit (loss) before tax and others 17 (76) (59) 26 (21) 5 Provision for income taxes and others (8) 24 16 (23) 2 (21) Non-controlling interests (3) (3) (1) (1) Discountinued operations (37) (37) 2 (1) 1 Net earnings (loss) 6 (89) (83) 4 (20) (16) per share 0.07 $ (0.95) $ (0.88) $ 0.04 $ (0.21) $ (0.17) $ Interest savings following refinancing Include withholding tax of $14M ($0.15 per share) Change in Operating results after-tax (normalized 30%) 0.07 $ Change in income taxes provision (vs normalized 30%) (0.13) $ One-time withholding tax and Europe valuation allowance reversal Change in discontinued operations, net of taxes 0.02 $ Operating results of closed discontinued operations Change in share of results of Associates and JVs - net 0.01 $ Lower EBITDA from Reno De Medici and lower contribution from investments of taxes and non-controlling interests (0.03) $ 13
EBITDA TO OPERATING INCOME RECONCILIATION 110 100 90 80 70 60 50 40 30 20 10 0 97 EBITDA excluding spec. Items (46) Depr. & amort. 2 52 53 (1) Op. income excluding spec. Items Unrealized gain on fin. instr. Loss on acqui., disposals and others Operating Income Container- Boxboard Specialty Tissue Corporate Discontinued board Europe Products Papers Activities Operations Total Operating income (loss) 36 4 10 20 (15) (2) 53 Specific items: Loss on acquisitions, disposals and others 1-2 - - (2) 1 Unrealized gain on financial instruments (2) - - - - - (2) Total specific items (1) - 2 - - (2) (1) Operating income (loss) excluding specific items 35 4 12 20 (15) (4) 52 Depreciation and amortization 15 10 4 12 4-45 EBITDA excluding specific items 50 14 16 32 (11) (4) 97 14
CASH FLOW OVERVIEW 1 Cash flow from continuing operations adjusted 105 98 90 75 60 45 30 15 81 57 59 56 - - - - - 3 2,3 60 50 40 30 20 10 0 51 Free cash flow 9 11 - - - - - (in millions of CAN$) Year YTD 3 Cash flow from operations adjusted, excl. disc. operations 45 40 81 57 223 59 56 983 213 2 Capital expenditures & other assets, net of disposals (46) (33) (26) (45) (150) (44) (34) (44) (122) Dividend & share buyback (4) (4) (4) (3) (15) (4) (4) (4) (12) Free cash flow (5) 3 51 9 58 11 18 50 79 Free cash flow per share $(0.05) $0.03 $0.54 $0.10 $0.62 $0.12 $0.19 $0.53 $0.84 18 50 Strong cash flow from operations for - including tax refund Note 1 Excluding discontinued operations. Note 2 Excluding increase in investments. Note 3 Excluding premiums paid on the refinancing of senior notes totaling $20M in and $11M in. 15
NET DEBT RECONCILIATION 1,675 1,650 1,625 1,600 1,645 0% EBITDA excl. specific $97M Net income tax refund $21M Net financial expenses paid ($17M) Dividends received and others ($3M) Subtotal $98M Premium paid on LTD refinancing ($11M) Cash flow from operations $87M 37 43 1,640 1,575 1,550 (87) (9) 3 8 1,525 Net Debt 06/30/ Cash flow from op. Var. in noncash work. cap. components Dividends paid & shares buyback Capital lease & others F/X Rate Capital investments, net Net Debt 09/30/ LTM 06/30/ LTM 09/30/ 363 EBITDA excluding specific items 365 4.5x Net debt/ebitda excluding specific items 4.5x Strong free cash flows and working capital management allowed for debt reduction despite FX net debt includes $96M of non-recourse net debt of Reno De Medici and other unrestricted subsidiaries. 16
CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Net debt / LTM EBITDA 1 Interest Coverage Ratio 7.0x 5.0x 6.0x 5.0x 5.8x 5.0x 4.6x 4.5x 4.0x 3.0x 2.5x 3.0x 3.4x 3.5x 4.0x 2.0x 3.0x 2011 LTM 09/30/ 1.0x 2011 LTM 09/30/ Net Debt / Net Debt + Total Equity Long-Term Debt Maturities 65% 60% 55% 56% 58% 57% 60% 700 525 350 374 277 250 616 50% 45% 2011 LTM 09/30/ 175 0 39 75 1 year >1 year 2016 2020 2021 2022 Senior notes Revolver Debts without recourse Subsidiaries debts Continuous improvement on the leverage front despite the weakness of the CAN$ Cascades bank debt financial covenant ratios: Net funded debt to capitalization < 65% (currently at 58%),interest coverage ratio > 2.25x (currently at 3.24x). 1 Excluding discontinued operations 17
SEGMENTED REVIEW
PACKAGING PRODUCTS / CONTAINERBOARD Results Change vs. Shipments ('000 s.t.) 337 0% 1% Comments on sequential performance Despite the fire incident at the Niagara Falls mill, shipments were relatively stable (-6% for the mills and +5% for the converted products) Strong increase in shipments of corrugated products (+6%) led to higher internal sales for our containerboard mills which contributed to limit external tonnage Average selling price (CAN$/unit) 1,088 (US$/unit) 999 1% 3% 2% -2% Higher average selling price mainly due to a better product mix as more converted products were sold Positive impact of a price increase in the boxboard sector Sales ($M) 366 EBITDA ($M) 50 % of sales 14% EBITDA excluding specific items 1% 4% 16% 19% Slight increase in sales as favourable product mix (+$7M) was partially offset by a decrease in selling prices primarily due to the strengthening of the Canadian dollar EBITDA increased by $7M compared to due to a favourable product mix which increased the average selling price (+$6M), a decrease in energy costs (+$2M) and a favourable foreign exchange rate (+$1M) These factors compensated for slightly higher production costs (-$1M) and raw material costs (-$1M) related to the change in the product mix which were partly offset by lower recycled fiber prices 19
PACKAGING PRODUCTS / BOXBOARD EUROPE Results Change vs. Comments on sequential performance Shipments ('000 s.t.) 257-9% 3% Lower shipments in our two markets during the quarter due to seasonal downtime, maintenance, and the installation of a new machine at Santa Giustina At the end of October, the backlog was healthier than at the same date last year Average selling price (CAN$/unit) 751 (Euros/unit) 521-4% 3% 0% -2% Prices stable in Euro Sequential strengthening of the Canadian dollar against the Euro resulted in lower average selling prices in Canadian dollar terms Sales ($M) 193 EBITDA ($M) 14 % of sales 7% EBITDA excluding specific items -12% 5% -30% 27% Sales decreased essentially due to above-mentioned decrease in shipments and the unfavorable exchange rate In addition to lower sales, higher raw material costs caused by a higher usage of white grades and CTMP pulp negatively affected the EBITDA $2M positive impact from white certificates Maintenance costs related to production downtime also negatively impacted the results Data adjusted to exclude the Djupafors mill 20
PACKAGING PRODUCTS / SPECIALTY PRODUCTS Results Change vs. Comments on sequential performance Shipments ('000 s.t.) 41 0% -9% Sequentially, higher shipments in our deinked pulp and vinyl backing activities were offset by lower shipments in the Recovery segment Shipments in the Industrial Packaging and the Consumer Product Packaging segments were stable Sales ($M) 145-1% 2% Slight decrease in sales caused by lower shipments in Recovery activities and an unfavourable average foreign exchange rate EBITDA ($M) 12 % of sales 8% EBITDA excluding specific items 20% 0% Significant sequential EBITDA increase mainly due to a favourable exchange rate at the end of the quarter, an increase in selling prices in the Consumer Product Packaging segment and lower fixed costs in the Recovery segment Compared to, positive impact of lower raw material costs in the Industrial Packaging segment Industrial Packaging, deinked pulp and vinyl backing shipments only Data restated to exclude the Fine Papers Division and the East Angus kraft paper mill 21
TISSUE PAPERS Results Change vs. Shipments ('000 s.t.) 153 9% 0% Comments on sequential performance Higher shipments in all our segments Sales of converted products increased by 11% due to higher volume in the Canadian retail market and favourable seasonality in the away-from-home market Shipments of parent rolls also increased by 8% Average selling price (CAN$/unit) 1,836 (US$/unit) 1,686 0% 1% 0% -3% Stable average selling prices Higher proportion of retail products sold in Canada at slightly lower prices and a higher share of away-from-home products in the product mix Sales ($M) 282 EBITDA ($M) 32 % of sales 11% EBITDA excluding specific items 10% 1% 39% -18% Increase in sales essentially linked to the above-mentioned increase in shipments In addition to the positive impact of higher shipments (+$8M), lower energy costs (+$2M), lower subcontracting (+$2M) and favourable foreign exchange rate (+$1M) contributed positively to the EBITDA More than offset the negative impact of higher raw material costs linked to higher purchases of rolls and virgin pulp and increased administration expenses 22
Q&A AND CONCLUDING REMARKS
NEAR TERM OUTLOOK seasonality in North America + seasonality in Europe Potential decrease of OCC costs Price increases for boxboard in North America Stable to favourable FX environment Positive impact from recent strategic initiatives I Competitive tissue market Start-up costs related to the new tissue paper machine in Oregon Reorganization of production logistics in relation to the new converting plant in North Carolina. Potential pricing pressure in Europe Boxboard Europe Containerboard Specialty Products Tissue Papers Volume Slight increase Slight decrease Slight decrease Slight decrease Average Selling prices Slight decrease Stable Stable Stable Raw material costs Slight decrease Slight decrease Slight decrease Stable CDN $ vs other currency Slight decrease Slight decrease Energy costs Slight increase Slight increase Slight increase Slight increase 24
APPENDIX
-11-11 -12-12 -12-12 -13-13 -13-13 -14-14 -14 FOREIGN EXCHANGE US$/CAN$ 1.10 1.05 1.00 0.95 0.90 0.85 0.80 0.75 US$/CAN$ Exchange rates Euro /CAN$ Euro /CAN$ 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 Hedging Program USD Cash flows 30% to 45% of exposure hedged at an average rate of 1.066 CAN$/US$ to 1.080 CAN$/US$ 2015 24% to 40% of exposure hedged at an average rate of 1.074 CAN$/US$ to 1.101 CAN$/US$ 2016 11% to 16% of exposure hedged at an average rate of 1.169 CAN$/US$ to 1.168 CAN$/US$ Source: Bloomberg Averages Year Foreign exchange rates Change US$/CAN$ 0.991 0.977 0.963 0.953 0.971 0.906 0.917 0.918-5% 0% Euro /CAN$ 0.751 0.748 0.727 0.700 0.731 0.661 0.669 0.693-5% 4% 26
-11-11 -12-12 -12-12 -13-13 -13-13 -14-14 -14 ENERGY PRICES Natural gas (US$) 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Energy prices Crude oil (US$) 110 100 90 80 70 60 50 Hedging Program Natural gas Canada: : 64% at 4.79 CAN$/GJ 2015 : 63% at 4.70 CAN$/GJ U.S.: : 57% at 4.88 US$/mmBtu 2015 : 54% at 4.88 US$/mmBtu Natural gas (US$/mmBtu) Crude oil (US$/barrel) Averages Year Energy prices Change Natural gas Henry Hub (US$/mmBtu) 3.34 4.09 3.58 3.60 3.65 4.94 4.67 4.06 13% -13% Crude oil WTI (US$/barrel) 93.37 92.54 102.42 98.60 96.73 98.89 101.33 102.40 0% 1% 0% Source: Bloomberg 27
July 11 Oct 11 Jan 12 Apr 12 July 12 Oct 12 Jan 13 Apr 13 July 13 Oct 13 Jan 14 Apr 14 July 14 Oct 14 July 11 Sept 11 Nov 11 Jan 12 Mar 12 May 12 July 12 Sept 12 Nov 12 Jan 13 Mar 13 May 13 July 13 Sept 13 Nov 13 Jan 14 Mar 14 May 14 July 14 Sept 14 July 11 Oct 11 Jan 12 Apr 12 July 12 Oct 12 Jan 13 Apr 13 July 13 Oct 13 Jan 14 Apr 14 July 14 Oct 14 July 11 Sept 11 Nov 11 Jan 12 Mar 12 May 12 July 12 Sept 12 Nov 12 Jan 13 Mar 13 May 13 July 13 Sept 13 Nov 13 Jan 14 Mar 14 May 14 July 14 Sept 14 SELECTED REFERENCE PRICES (US$/s.t.) 1,100 1,000 900 800 700 600 500 400 Containerboard - Selected Products 20-pt clay coated news (CRB) Linerboard 42-lb Corrugating medium 26-lb Current (October) 955 740 700 10$ decrease July (Euro /m.t.) 1,200 1,100 1,000 900 800 700 600 500 Boxboard Europe - Selected Products Coated duplex - virgin board (GC2) White-lined chipboard - recycled board (GD2) 9$ decrease Sept. Specialty Products - Selected Products (US$/s.t.) 725 700 675 650 625 20-pt bending chip food 600 Current (October) 700 (US$/s.t.) 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 Tissue Papers - Selected Products Virgin parent rolls Recycled parent rolls Current (September) 1,269 1,035 28
SELECTED REFERENCE PRICES AND FIBRE COSTS These indexes should only be used as indicator of trends and they be different than our actual selling prices or purchasing costs. 2011 Year Year Year Sources RISI, Cascades and Reno de Medici 1 The index represents an approximation of Cascades recycled grades selling prices in Europe. It is based on RISI data and weighted by country. 2 The index represents an approximation of Cascades virgin grades selling prices in Europe. It is based on RISI data and weighted by country. 3 The recovered paper index represents an approximation of Cascades recovered paper purchase prices in Europe. It is based on RISI data and weighted by country. over over (units) (%) (units) (%) Selling prices (average) PACKAGING PRODUCTS Boxboard North America (US$/ton) Recycled boxboard - 20pt. clay coated news (transaction) 909 900 880 912 942 955 922 955 955 955 13 1% 0 0% Europe (Euro/tonne) Recycled white-lined chipboard (GD2) index 1 710 680 656 656 670 671 663 671 671 671 0 0% 0 0% Virgin coated duplex boxboard (GC2) index 2 1,153 1,121 1,086 1,086 1,086 1,086 1,086 1,097 1,098 1,095 8 1% -3 0% Containerboard (US$/ton) Linerboard 42-lb. unbleached kraft, East U.S. (transaction) 640 657 690 740 740 740 728 740 740 740 0 0% 0 0% Corrugating medium 26-lb. semichemical, East U.S. (transaction) 610 627 660 710 710 710 698 710 710 700-10 -1% -10-1% Specialty Products (US$/ton, tonne for deinked pulp) Recycled boxboard - 20pt. bending chip (transaction) 670 662 653 665 682 690 673 690 700 700 18 3% 0 0% Deinked pulp (f.o.b; U.S. air-dried & wet-lap, post-consumer) 763 692 740 755 758 770 756 785 800 800 42 5% 0 0% TISSUE PAPERS (US$/ton) Parent rolls, recycled fibres (transaction) 1,286 1,238 1,199 1,200 1,135 1,106 1,160 1,068 1,038 1,041-95 -8% 3 0% Parent rolls, virgin fibres (transaction) 1,433 1,366 1,338 1,372 1,387 1,367 1,366 1,289 1,259 1,270-117 -8% 12 1% Raw materials (average) RECYCLED PAPER North America (US$/ton) Corrugated containers, no. 11 (OCC - Midwest & Northeast average) 149 104 94 98 102 102 99 100 93 86-16 -16% -7-8% Special news, no. 8 (ONP - Midwest & Northeast average) 126 76 67 65 58 58 62 58 58 58 0 0% 0 0% Sorted office papers, no. 37 (SOP - Midwest & Northeast average) 233 154 150 138 135 134 139 140 143 145 10 8% 3 2% Europe (Euro/tonne) Recovered paper index 3 140 111 111 119 114 116 115 115 107 108-7 -6% 0 0% VIRGIN PULP (US$/tonne) Bleached softwood kraft Northern, Eastern U.S. 978 873 898 937 947 983 941 1,017 1,030 1,030 83 9% 0 0% Bleached hardwood kraft Northern mixed, Eastern U.S. 808 750 791 853 873 860 844 872 873 843-30 -3% -30-3% 29
For more information: www.cascades.com/investors Riko Gaudreault Director, Investor Relations 514-282-2697 or investisseur@cascades.com