KP Tissue (KPT) AGM 2024 summary

Opening remarks and agenda

• Meeting held virtually to increase accessibility, with all shareholders able to participate, submit questions, and vote online.

• Board members, executive team, and representatives from Kruger Inc. were introduced; technical support and Q&A procedures were outlined.

• Meeting included opening remarks, appointment of secretary and scrutineer, presentation of 2023 financials, election of directors, auditor re-appointment, by-law amendments, and a shareholder Q&A session.

• Forward-looking statements and risk factors referenced, with further details available in the 2023 MD&A and Annual Information Form.

Board and executive committee updates

• Four directors nominated and elected: François Vimard, James Hardy, Sarah Kruger, and John J. Wright.

• CFO transition completed in March 2024, with Michael Keays succeeding Mark Holbrook, who remains as special advisor until end of 2025.

• Seamless CFO transition was initiated during the year.

Financial performance review

• Fiscal 2023 saw record revenue of CAD 1.9 billion (up 11.4%) and record Adjusted EBITDA of CAD 238.6 million (more than doubled year-over-year).

• Adjusted EBITDA margin reached 12.7% in 2023; Canadian and U.S. revenues grew 7.4% and 17.1%, respectively.

• Q1 2024 revenue grew 6.3% year-over-year, with Adjusted EBITDA up 34.3% to $67.1 million.

• Net debt at Q1 2024 was CAD 1.03 billion, with a net debt/EBITDA ratio of 4.0x, increased due to Sherbrooke Expansion Project and higher working capital.

• Gained market share in facial tissue and paper towel categories, with improved share trend in bathroom tissue.