Cascades Unveils its 2022-2024 Strategic Update - The Path Forward

Cascades Inc., a leader in sustainable recycling, hygiene and packaging solutions, has unveiled its 2022-2024 strategic update that commits to leveraging the company's strong asset base and product portfolio to accelerate value creation and improve profitability. The strategy also introduces new financial targets focusing on free cash flow generation and a plan to improve profitability of its Tissue Group.Cascades Inc., a leader in sustainable recycling, hygiene and packaging solutions, has unveiled its 2022-2024 strategic update that commits to leveraging the company's strong asset base and product portfolio to accelerate value creation and improve profitability. The strategy also introduces new financial targets focusing on free cash flow generation and a plan to improve profitability of its Tissue Group.

"Our plan aims to generate value for shareholders, accelerate profitability improvement and strengthen our tissue business, all while continuing to prioritize sustainability, which has been at the core of our strategy since we started business" said president and CEO, Mario Plourde. "Cascades is an integrated company with strong assets to fuel future profitable growth, and I am confident we have the right team and the right experience to execute on our plan that aims to generate $5 billion of revenue in 2024."

Tissue: Accelerate Profitability

The tissue business has been particularly impacted by the COVID-19 pandemic. The tissue market will provide opportunities for growth as the effects of the pandemic subside, and Cascades' tissue assets are well positioned to benefit from this recovery. Between 2017 and 2020 the Company completed significant investments to modernize and consolidate its assets and focus on volume and profitability improvements. Moving forward, the Company's immediate priority is to execute a comprehensive action plan that will accelerate profitability and strengthen the fundamentals of the tissue business.

Key pillars of this action plan for the Tissue segment include:

Leveraging the well-capitalized tissue asset base and limiting investments to $35 million annually through 2024
Focusing on production execution and efficiency particularly in our US operations
Strengthening commercial strategies to drive value
Achieving revenue of $1.7 billion and an OIBD1 margin of 9 percent -10 percent in 2024

The Path Forward: A Vision for 2024

"Over the last 10 years we have taken a number of important strategic steps to reposition our business and adapt to evolving market dynamics and customer needs. I'm proud of the work we have accomplished, and I think that with this renewed vision, we are better equipped than ever to deliver for customers and shareholders" concluded Mario Plourde.

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