2011 - Cascades

CASCADES
NBF
Québec Conférence
June 5, 2012

DISCLAIMER
Certain statements in this presentation, including statements regarding future results and performance, are
forward-looking g statements within the meaning g of securities legislation g based on current expectations. p 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 Company’s products, the prices and availability of raw
materials, changes in the relative values of certain currencies, fluctuations in selling prices and adverse
changes h in i general l market k t and d iindustry d t conditions. diti Thi This presentation t ti also l iincludes l d price i iindices di as well ll 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
Company.
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 Company 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 Company’s Company s operating segments. 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 annual report or earnings press release.
SSpecific ifi items it are ddefined fi d as it items such h as charges h f for iimpairment i t of f assets, t for f facility f ilit or machine hi
closures, debt restructuring charges, gains or losses on sales 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

OVERVIEW – PACKAGING AND TISSUE PRODUCTS
Boxboard Containerboard Specialty products Tissue papers
Leading NA packaging and tissue manufacturer with substantial recycling capabilities
3

OVERVIEW – BALANCED PLAY
Boxboard Europe
PPackaging k i
77% of Sales
66% of EBITDA
Containerboard
Cascades
Q1-2012 LTM Sales1 : $3,780
Q1-2012 LTM EBITDA1, 2 Q1 2012 LTM EBITDA : $274
, : $274
Specialty Products
24% of Sales
31% of Sales
22% of Sales
21% of f EBITDA 31% of f EBITDA 14% of f EBITDA
($ in millions)
Ti Tissue PPapers
23% of Sales
34% of EBITDA
Exposure to two healthiest P&P sectors and less cyclical cyclical end-markets
end markets
1 Adjusted for the full year consolidation of Reno de Medici and Papersource.
2 EBITDA excluding specific items and discontinued operations. Breakdown of sales and EBITDA before eliminations & corporate activities.
4

OVERVIEW – CLOSED-LOOP BUSINESS MODEL
May be sent to
recycling centers
100+ business units 76% recycled fibre
(2.9M tons)
23 units
Including the 6 manufacturing/converting tissue papers units and Reno De Medici’s units.
30 units
NA integration rate (2011):
33% (580K tons)
NA integration rate (2011):
62 units 47%
Upstream and downstream integration
5

Cascades
Recovery
and Internal
35%
OVERVIEW – RECYCLED FIBRE SUPPLY
2008
Recycled Fibre Supply Sources – North America
Spot
Purchases
19%
Contractual
agreements
46%
Cascades
Recovery
and d IInternal t l
32%
2011
Spot
Purchases
20%
Contractual
agreements
48%
Control over 80% of our fibre supply despite greater concentration on the supply side
6

MARKET DYNAMICS – DEMAND
Packaging Tissue
(billions
ft2)
460
420
380
340
300
412 411 413
North American Box Shipments
428
424 421 421
405
374
386 387
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sources: RISI, Fiber Box Association, Paper Packaging Canada.
('000 s.t.)
8,400
8,200
8,000
7,800
7,600
7,844
U.S. Total Tissue Consumption
77,896 896
Exposure to relatively stable / growing demand
8,028
88,201 201
8,053
8,219
8,319
2005 2006 2007 2008 2009 2010 2011
7

MARKET DYNAMICS – SUPPLY
100% 85%
80%
60%
40%
20%
0%
North American
coated boxboard
Top 5 producers' share of capacity
66%
European coated
boxboard
77%
North American
containerboard
86%
Canadian
containerboard
76%
North American
tissue
CCascades’s
Market Share
(estimate)
3% 17% 3% 26% 7%
Sources: RISI, companies filings.
Increased consolidation over the last few years in our market segments
8

MARKET DYNAMICS – MARKET BALANCE
100%
96%
92%
88%
84%
80%
76%
Annual Average Capacity Utilization Rates
2007 2008 2009 2010 2011
U.S. Containerboard Industry U.S. Coated Recycled Boxboard Industry U.S. Tissue Industry
Balanced supply/demand equation with utilization rates at approximately 95%
Sources: RISI, CEPI Cartonboard, Paper Packaging Canada , Fiber Box Association.
9

MARKET DYNAMICS – PRICING
Packaging Tissue
1,200
1,000
800
600
400
Source: RISI.
991
597
560 420
Packaging Annual Average Selling Prices
1,153 ,
909
710
640
2004 2005 2006 2007 2008 2009 2010 2011
Virgin Coated Duplex Boxboard (GC2)
Recycled White-Lined Chipboard Index (GD2)
Recycled Boxboard - 20 pt claycoated news (transaction)
Linerboard 42-lb, unbleached kraft, East US (transaction)
1,700
11,600 600
1,500
1,400
1,300
1,200
11,100 100
1,148
Upward long long-term term pricing trend
Cascades Tissue Papers Index
(January 1999 = 1,000)
1,669
2003 2004 2005 2006 2007 2008 2009 2010 2011
10

Sources: RISI, Bloomberg.
MARKET DYNAMICS – RAW MATERIAL COSTS
(US$/ton)
300
250
200
150
100
50
0
Main Recycled Fiber North Amercian OBM List Prices
165
Whit White grades d (SOP)
Jan 08
Mar r 08
Mayy
08
July 08
Sept 08
Nov 08
Jan 09
Mar r 09
Mayy
09
July 09
Sept 09
Nov 09
Jan 10
Mar r 10
Mayy
10
July 10
Sept 10
Nov 10
Jan 11
Mar r 11
Mayy
11
July 11
Sept 11
Nov 11
Jan 12
Mar r 12
290
Brown grades (OCC)
Market anomaly: SOP trading close to OCC OCC should trade at lower price
150
140
Current
135
11

MARKET DYNAMICS – FX AND OTHER INPUT COSTS
Oil & chemicals Currency
Since Since
Dec. 2011 Jan. 2010
Oil +9% +46%
Latex +10% +43%
Pigments +1% +37%
Plastics +12% +29%
Starch +3% +28%
performance against
€
Q1-2012 vs
Q4-2011 +2% +5%
CAN$ strength and input costs sky sky-rocketing rocketing since 2010
12

STRATEGIC ACTION PLAN – PRIORITY #1
1
Focused investing for modernization of core operations and IT
• Full machine rebuilt
• Swing machine with “TAD
equivalent” technology
• $30M iinvestment t t
• First to install in North America
• High-end tissue paper offering
• Can use up to 100% recycled fiber
• Lower energy costs
ATMOS (Voith) ERP
• $80M iinvestment t t program
• Blueprint and programming:
2011-2012
• Implementation:
2011-2015
Challenging Ch Challenging ll i M Market k t E Evolution l ti P Proactive ti measures I Improved d profitability
fit bilit
13

STRATEGIC ACTION PLAN – PRIORITY #1 (cont’d)
• Competitive advantage – Recycled liner
• Largest in NA
• 540,000 short tons capacity
• Most technologically advanced equipment
• Well-aligned with current market trends
• Financial flexibility not affected
• $99M total investment
• $84M in equity
• $15M in bridge loan
• Debt non-recourse to Cascades
• Strong Partnership
• Norampac p ( (Cascades) ) 59.7%
• Caisse de dépôt
et placement du Québec 20.2%
• Two industry converters 20.1%
Will Will position i i us amongst leaders l d in i terms of f product d offering, ff i productivity d i i and d profitability
fi bili
14

STRATEGIC ACTION PLAN – PRIORITY #2
2
Optimizing capital allocation between sectors and investments; reducing working capital
Papersource Acquisition
• Acquired one of the most modern
converting plants in NA
• Integration level increased to 70% +
• RReinforces i f positioning iti i i in awayfrom-home
sector
• 10 converting lines
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
14.7%
W/C Reduction
Working capital (% of sales)
16.3% 16.1%
14 6% 15.0% 14.8% 15.0%
14.6%
Challenging Ch Challenging ll i M Market k t E Evolution l ti P Proactive ti measures I Improve profitability
fit bilit
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
13.7%
Q4
2011
15

STRATEGIC ACTION PLAN – PRIORITY #3
3
Restructuring of under-performing units
Periods 2004-2006 2006-2008 2008-2010 2011
Strategic
measures
PPackaging k i PPackaging k i PPackaging k i PPackaging k i
5 acquisitions
2 mergers
2 closures
4 sales
7 closures
4 closures
2 acquisitions 1 investment
2 sales
4 sales
4 closures
2 acquisitions i iti
Ti Tissue
Tissue
1 partnership
1 investment
Tissue
1 sale
1 closure
1 acquisition i iti
1 acquisition
1 acquisition
Challenging Ch Challenging ll i M Market k t E Evolution l ti P Proactive ti measures I Improved d profitability
fit bilit
16

STRATEGIC ACTION PLAN – PRIORITY #4
4
Improvement and development of processes and products through innovation
MID-TERM OBJECTIVE
ROCE ≥ WACC
Net debt/EBITDA at 3x
Challenging Ch Challenging ll i M Market k t E Evolution l ti P Proactive ti measures I Improve profitability
fit bilit
17

STRATEGIC ACTION PLAN – Q1-2012 INITIATIVES
Restructuring of
under-performing units
● Announced consolidation of
Ontario containerboard
operations with closure of
three plants
● Announced closure of
Enviropac-Toronto
Focused investing for
modernization of
core operations (and IT)
● $30 million investment
announced in Ontario in our
containerboard sector
● ERP progressing
Optimizing capital allocation
between
sectors and investments
● Acquisition of Bird Packaging
● Greenpac on schedule and
on budget; g ; installation of
paper machine started
Challenging Market Evolution Proactive measures Improved profitability
18

(M CAN$)
4,500
4,000
3,500
3000 3,000
2,500
FINANCIAL REVIEW – HISTORICAL PERFORMANCE
3,449
3,692
3,862 ,
SALES
3,481
4,033 4,025
3,877
3,182
3,625
2003 2004 2005 2006 2007 2008 2009 2010 2011
(M CAN$)
500
400
300
200
100
0
250 259 262
EBITDA
465
340
314 305 310
229
2003 2004 2005 2006 2007 2008 2009 2010 2011
CANADIAN GAAP IFRS CANADIAN GAAP
IFRS
Results impacted by challenging market conditions, lower shipments and higher cost input
EBITDA excluding specific items but including discontinued operations. Canadian GAAP (not adjusted for IFRS).
2010 and 2011 figures presented under IFRS and exclude discontinued operations of Dopaco.
19

FINANCIAL REVIEW – SEGMENTED EBITDA
(M CAN$)
Boxboard Europe
(% of sales) (M CAN$)
Containerboard
(% of f sales) )
20
15
10
5
0
(M CAN$)
20
15
10
5
0
17
12,0% 60
46
55
4
5
10 10
13
7,0%
2,0%
45
30
15
33
36
19 20
27
19 21
2 2
0
-3,0% 0
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
16
Q1
2010
17
Q2
2010
18
Q3
2010
Specialty Products
12
Q4
2010
7
Q1
2011
12
Q2
2011
13
Q3
2011
2
Q4
2011
(% of sales)
11
Q1
2012
20,0%
15 15,0% 0%
10,0%
5,0%
0,0%
(M CAN$)
40
30
20
10
0
19 24 24 23
Tissue Papers
10
16
18
288
33
15,0%
12,0%
9,0%
6,0%
3,0%
(% of sales)
Specialized p Products & Tissue: Improvement p due to lower raw material costs and productivity
p y
Containerboard: Not producing to expectations Europe: Difficult market environment in Q1 Q1-2012 2012
EBITDA excluding specific items.
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
20,0%
15 15,0% 0%
10,0%
5,0%
00% 0,0%
20

See notes page 34.
FINANCIAL REVIEW – KEY INDICATORS (KPIs)
('000 ( 000 s.t.)
1000
900
800
700
600
500
12,0%
10 10,5% 5%
9,0%
7,5%
6,0%
692
695
Total Shipments
663 661
902
821
775
796
96%
92%
88%
84%
80%
94%
91%
Capacity Utilization Rate
87%
90% 90%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2011 2011 2011 2011 2012 2010 2010 2010 2011 2011 2011 2011 2012
11,2% 11,0% 10,6%
Q2
2010
Q3
2010
LTM Return on Assets
Q4
2010
9,9%
Q1
2011
8,7%
Q2
2011
7,4%
Q3
2011
6,5%
Q4
2011
7,1%
Q1
2012
18.0%
16.0%
14.0%
12.0%
15.1% 15.1%
Working Capital (% of Sales)
87%
13.9% 14.5% 14.4% 14.5%
Utilization rate and working capital KPIs did not meet expectations
10.0%
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
86%
13.2%
Q4
2011
89%
14.2%
Q1
2012
21

FINANCIAL REVIEW – EQUITY INVESTMENTS
• 35% equity investment
• Market Value: +/- $110M
Boralex’s forecast installed production capacity
(MW)
1 000
800
600
400
472
818
875
2011 2013 2015
(euro)
50
40
30
20
• 45% equity investment
• Market value: +/- $25M
Reno De Medici’s EBITDA
32
40
30
2009 2010 2011
Investments in strong growth & turnaround stories currently worth +/ +/- $135M
Boralex’s production capacity pro forma for the Seigneurie de Beaupré project.
22

(M CAN$)
2,000
1,800
1,600
1,400
1,200
1,000
1,805
Q1
2009
FINANCIAL REVIEW – DEBT PROFILE
Net Debt
1,658
1,570
11,533 533 11,508 08
1524
1,454 1,462 1,445
1,485
1,397
1,370
1,298
1,524
,
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
90% of debt maturing after 2015
Long-term Debt Maturities Distribution
2017
34%
2016
14%
2020
17% %
2015
25%
Before 2015
10%
Before 2015 2015 2016 2017 2020
23

65%
60%
55%
50%
45%
40%
FINANCIAL REVIEW – LEVERAGE RATIOS
58%
Debt / Debt + Equity q y
Net debt / LTM EBITDA
54%
56%
59%
60%
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
4.2 x 4.2 x
3.0
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
4.9 x
Slight increase in debt during the execution of our strategic plan
¹Starting in Q2 2011, LTM EBITDA / Interest includes 100% of Reno De Medici. Starting in Q4 2011, also includes 100% of Papersource. Cascades’ financial covenant ratios: Net funded debt to
capitalization of not more than 65%,interest coverage ratio not less than 2.25x. EBITDA excluding specific items. Q2 and Q3 2011 numbers have been slightly restated following the finalization of
the purchase price allocation on the Reno De Medici acquisition
24
5.8 x
56 5.6 x

FINANCIAL REVIEW – CAPEX PROGRAM
• Projects in the works could be approved if business conditions are favourable
– Potential for $225M to $250M in 2012
• Capex requests for 2012 initially approved at approximately $150M
Tissue papers
25%
– Amount subject to change depending on operating results and economic conditions conditions.
Specialty
products
21%
By segment
Corporate
6%
Capital Expenditures Distribution in 2011 ‐ $141M
Boxboard
23%
Containerboard
25%
Health & Safety
7%
Energy
4%
By project category
Others
15%
Cost Reduction Reduction,
Productivity &
Maintenance
74%
Gradual capex program to improve asset base while maintaining financial flexibility
25

CONCLUDING REMARKS
• Short term
• Prioritize organic growth and productivity improvement
• Proactively address operational issues and realize our strategic plan
• Medium term
• Focused investing for modernization of core operations
• Optimize capital allocation
• Restructure under-performing units
• Improve p and develop p pprocesses and pproducts through g innovation
• Reach industry comparable leverage ratios
• Pursue consolidation opportunities
Prudent and gradual investments to improve portfolio of assets
26

NEAR TERM OUTLOOK: Cautious optimism
• Lower raw material costs
• Consolidation of Papersource
• Impacts of restructuring and
optimization measures
• Produce according to historical
standards
+ I + I Boxboard
Europe
• Higher demand volatility
• Europe p uncertainty y
• Continuous strength of CAN$
• High energy and chemical costs
Containerboard Specialty products Tissue papers
Volume Stable Slight increase Slight increase Slight increase
Selling prices Slight increase Stable Stable Stable
Raw material costs Slight decrease Slight decrease Slight decrease Slight decrease
Exchange rate Stable Stable
Energy Costs Slight increase Stable
27

APPENDIX
28

Source: Bloomberg.
ENERGY PRICES
Natural gas
(US$)
7.00
600 6.00
5.00
4.00
3.00
2.00
1.00
0.00
Energy prices
Apr 09
July 09
Oct 09
Jan 10
Apr 10
July 10
Oct 10
Jan 11
Apr 11
July 11
Oct 11
Jan 12
Natural gas (US$/mmBtu)
Crude oil (US$/barrel)
Crude oil
(US$)
110
90
70
50
30
Hedging Program - Natural gas
• Canada:
• 2012: 65% at 5.97 CAN$/GJ
• 2013: 70% at 5.48 CAN$/GJ
• US: U.S.:
• 2012: 58% at 6.30 US$/mmBtu
• 2013: 52% at 5.84 US$/mmBtu
2010 2011 2012 Change
Q1 2012 Q1 2012
Averages
Energy prices
Year Year Q1 Q1 2011 Q4 2011
Natural gas Henry Hub (US$/mmBtu) 4.39 4.04 2.74 -33% -23%
Crude oil WTI (US$/barrel) 77.32 94.01 100.51 11% 12%
29

US$/CAN$
1.10
1.05
1.00
0.95
0.90
0.85
0.80
Source: Bloomberg.
FOREIGN EXCHANGE
Exchange rates
US$/CAN$ Euro/CAN$
Aprr
09
Julyy
09
Octt
09
Jann
10
Aprr
10
Julyy
10
Octt
10
Jann
11
Aprr
11
Julyy
11
Octt
11
Jann
12
EURO/CAN$
1.00
0.95
0.90
0.85
0.80
0.75
0.70
0.65
0.60
Hedging Program - Cash flow USD:
• 2012
31 to 52% (with options) of exposure
hedged at an average rate of
1.032CAN$/US$ to 1.067CAN$/US$
• 2013
23 to 39% (with options) of exposure
hedged at an average rate of
1.037CAN$/US$ to 1.079CAN$/US$
2010 2011 2012 Change
Q1 2012 Q1 2012
Averages
Foreign exchange rates
Year Year Q1 Q1 2011 Q4 2011
US$/CAN$ 0.971 1.011 0.999 -2% 2%
EURO/CAN$ 0733 0.733 0727 0.727 0762 0.762 3% 5%
30

NORTH AMERICAN MANUFACTURING SPREAD
1,300
11,200 200
11,100 100
11,000 000
900
See notes page 34. Source: Bloomberg.
1,166
206
Q1
2009
Q2
2009
Q3
2009
11,070 070
324
Q4
2009
1,106
428
Q1
2010
Q2
2010
Q3
2010
1,234
452
Q4
2010
Q1
2011
Q2
2011
1,2671,271
512
Q3
2011
410 387
Q4
2011
Q1
2012
850
750
650
550
450
350
250
150
Manufacturing spread in CAN$ in Q1/12: +1% vs Q4/11 and +17% vs Q1/11
31

MARKET PRICES AND COSTS SUMMARY
2010 2011 2012 Change
Change
These indexes should only be used as indicator of trends
Average Average Average Average Average Average Average Q1 2012 Q1 2012
and they be different than our actual selling prices or purchasing
Q1 Q2 Q3 Q4 Q1 Q1 2011 Q4 2011
costs.
Selling prices
(unit) (%) (unit) (%)
Cascades North American US$ index (index 2005 = 1,000) 1 PACKAGING
Boxboard
North America (US$/ton)
1,186 1,238 1,250 1,267 1,272 1,256 1,271 34 3% 0 0%
Recycled boxboard - 20pt. Clay coated news (transaction)
Europe (Euro/tonne)
828 880 917 920 920 909 920 40 5% 0 0%
Recycled white-lined chipboard (GD2) index 2 639 690 716 716 718 710 698 8 1% -20 -3%
Virgin coated duplex boxboard (GC2) index 3 Containerboard (US$/ton)
1,055 1,155 1,151 1,152 1,155 1,153 1,141 -14 -1% -14 -1%
Linerboard 42-lb. unbleached kraft, East US (transaction) 625 640 640 640 640 640 640 0 0% 0 0%
Corrugating medium 26-lb. Semichemical, East U.S. (transaction)
Specialty products (US$/ton, tonne for deinked pulp)
595 610 610 610 610 610 610 0 0% 0 0%
Recycled boxboard - 20pt. Bending chip (transaction) 619 667 675 670 670 670 670 3 1% 0 0%
Deinked pulp (f.o.b; U.S. air-dried & wet-lap, post-consumer) 743 748 768 812 725 763 663 -85 -11% -62 -9%
Unbleached kraft paper, Grocery bag 30-lb. 1,022 1,025 1,093 1,110 1,150 1,095 1,110 85 8% -40 -3%
Uncoated white 50-lb. offset, rolls
TISSUE PAPERS
914 930 955 947 930 940 923 -7 -1% -7 -1%
Cascades Tissue papers (index 1999 = 1,000) 4 Raw materials
1,619 1,631 1,662 1,718 1,664 1,669 1,612 -19 -1% -52 -3%
Cascades North American US$ index (index 2005 = 300) 5 RECYCLED PAPER
North America (US$/ton)
421 471 494 512 410 472 387 -83 -18% -23 -6%
Corrugated containers, no. 11 (New England) 149 182 178 179 155 174 152 -30 -17% -4 -2%
Special news, no. 8 (ONP - Chicago & NY average) 88 128 139 135 103 126 85 -43 -34% -18 -18%
Sorted office papers, no. 37 (SOP - Chicago & NY average)
Europe (Euro/tonne)
214 223 263 283 164 233 145 -78 -35% -18 -11%
Recovered paper index 6 VIRGIN PULP (US$/tonne)
120 146 158 147 107 140 113 -33 -23% 6 6%
Bl Bleached h d softwood ft d kraft k ft Northern, N th East E t U.S. U S 960 970 11,027 027 993 920 978 873 -97 97 -10% 10% -47 47 -5% 5%
Bleached hardwood kraft Northern mixed, East U.S. 856 820 850 823 738 808 714 -106 -13% -24 -3%
WOODCHIPS – Conifer eastern Canada (US$/odmt) 123 123 125 125 134 127 130 7 6% 4 -3%
Sources: RISI, Dow Jones, Random Lengths and Cascades. See notes p. 34.
32

SENSITIVITY TABLE 2011
SELLING PRICES (MANUFACTURING)
Boxboard
Containerboard
Specialty Products (paper only)
Tissue
RAW MATERIAL COSTS
Recycled papers
Brown grades (OCC & others)
Groundwood grades (ONP & others)
White grades (SOP & others)
Commercial pulp
Natural gas
CAPACITY /
CONSUMPTION
(‘000 s.t. and ‘000 mmBtu
for natural gas)
1,425
920
375
525
1,740
305
870
275
11,740
CHANGE EBITDA IMPACT
(In million of CAN$)
25 US$ or € / ton
25 US$ / ton
25 US$ / ton
25 US$ / ton
15 US$ or € / ton
15 US$ or € / ton
15 US$ or € / ton
30 US$ or € / ton
1.00 US$ or € / mmBtu
FOREIGN EXCHANGE
Change of US$ 0.01 vs CAN$ (7)
Sensitivity table adjusted for all recent initiatives (transactions, closures).
45
23
9
13
(29)
(5)
(14)
(9)
(13)
33

NOTES
1. The Cascades Noth American selling prices index represents an approximation of the Company's manufacturing selling prices in North America
(excluding converting). It is weighted according to shipments and is based on the average selling price of our North American manufacturing
operations of boxboard, containerboard, speciality products and tissue paper. It considers the change in the mix of products sold. This index
should only be used as a trend indicator.
2. The Cascades recycled white-lined chipboard selling prices index represents an approximation of Cascades’ recycled grades selling prices in
Europe Europe. It is weighted by country. country
3. The Cascades virgin coated duplex boxboard selling prices index represents an approximation of Cascades’ virgin grades selling prices in
Europe. It is weighted by country.
4. The Cascades Tissue paper selling prices index represents a mix of primary and converted products, and is based on the product mix at the end
of 2006.
5. The Cascades North American raw materials index is based on publication prices and the average weighted cost paid for some of our
man manufacturing fact ring raw ra materials materials, namel namely rec recycled cled fibre fibre, virgin irgin ppulp lp and woodchips, oodchips in North America. America It is weighted eighted according to ppurchase rchase volume. ol me
This index should only be used as a trend indicator, as it may differ from our actual manufacturing purchasing costs and our purchase mix.
6. The Cascades recovered paper index represents an approximation of Cascades’ recovered paper purchase prices in Europe. It is weighted by
country based on the recycled fibre supply mix of 2009.
The capacity utilization rate is defined as: Shipments/Practical capacity. Paper manufacturing only.
Return on assets is a non-GAAP measure and is defined as: LTM EBITDA excluding specific items/ LTM Average of total quarterly assets. It includes
discontinued operations.
Working capital includes accounts receivable plus inventories less accounts payable. It excludes an unpaid provision for closure and restructuring
costs. t It also l excludes l d th the current t portion ti of f dderivatives i ti fi financial i l iinstruments t t and d th the current t portion ti of f ffuture t t taxes li liability. bilit
34

For more information:
www.cascades.com/investors
Riko Gaudreault
Di Director, t I Investor t R Relations l ti
riko_gaudreault@cascades.com
514 514-282 282-2697 2697
35 35