CIBC Institutional Investor Conference February 17, 2005

1
CIBC Institutional Investor Conference February
17, 2005

• Investor Presentation

2
Safe Harbor Statement

• Certain statements in this presentation,
  including statements regarding future results and
  performance, are forward-looking statements (as
  such term is defined under the United States
  Private Securities Litigation Reform Act of 1995)
  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 Companys products, increases
  in raw material costs, changes in the relative
  values of certain currencies, fluctuations in
  selling prices, adverse changes in general market
  and industry conditions and other factors listed
  in the Companys Securities and Exchange
  Commission filings.
• This presentation contains certain non gaap
  financial measures. Such information is
  reconciled to the most directly comparable
  financial measures, as set forth in the
  "additional information supplemental
  information on non-gaap measures" section, which
  is attached to the companys financial
  statements.
• Also segmented comments and figures in this
  presentation do not take into account the items
  reclassified as being discontinued operations,
  given our expectancy to divest before year-end of
  certain distribution activities. The impact of
  these discontinued activities is outlined in our
  most recent the financial statements.

3
Mr. Alain LemairePresident and CEO Cascades
4
Business Overview
2004 Sales C3.7 billion 2004 EBITDA C259
million
Fine Papers
Packaging Products
Tissue Papers

• Boxboard
• Containerboard
• Specialty Products

• Manufacturing
• Distributing

2004 Sales
19
19
62
2004 EBITDA
29
(1)
72
(1)
2004 CROCE
8
14
Cash return on Capital employed calculations
based on average fiscal year end identifiable
assets
5
Cascades Key Characteristics

• A distinctive entrepreneurial culture
• Focus on attractive packaging and tissue segments
• Significant degree of converting integration
• Advantageous position in recycled fiber

Cascades has been delivering superior financial
performance
6
? A Distinctive Entrepreneurial Culture

• Decentralized management structure
• Young, dedicated, well-trained workforce
• Strong culture driving continuous improvement
  programs
• Profit sharing program linked to the financial
  and operating performance of individual facilities

Our culture is our best tool to adapt to a
changing environment. It has produced one of the
Top ROCES in the industry
7
?Focus on packaging and Tissue Through ()
Leading Market Positions in Core Segments

• Packaging (2004 sales of C2.3 billion)
• Boxboard
• Largest producer in Canada and in France
• 3rd largest producer of coated recycled boxboard
  in Europe
• Top 10 producer in North America
• No 1 in Quick Service Restaurant (QSR) in North
  America (folding cartons)
• Specialty Products
• Leader in protective packaging for the Pulp
  Paper industry and in the Canadian food packaging
  business
• Containerboard (Norampac)
• One of two leading producer in Canada
• 7th largest linerboard producer in North America
• Tissue (2004 sales of C700 million)
• 4 in North American tissue paper making capacity
• Fine Papers (2004 sales of C700 million)
• 2nd largest distributor of fine papers and
  graphic arts products in Canada

8
? () Geographical Diversification
Sales outside Canada close to 60 PPE base
outside Canada over 40
9
? () Diversified End Markets Customers
Preferred supplier to quality customers because
of the scale and scope of operations
End Markets
Key Customers and Recognized Brands

Packaging Consumer products Food and
beverage Industrial manufacturers Quick service
restaurants Tissue Retail (private labels) "
Away-From-Home"
Ability to cross-sell to these quality customers
The above logos are registered trademarks of
our customers.
10
? () Significant Converting Integration
Tissue
Packaging
N.A. Boxboard
Containerboard(1)
Converted
Converted
Converted
by
by
by
Cascades
Cascades
Cascades
43
64
61
39
Sold to
36
Sold to
57
Sold to
other
Other
Other
Paper companies
Converters
Converters
Allows for proximity to end user while providing
higher value-added products
(1) Reflects North American converting
integration rates for the year ended December
31,2004.
11
? Advantageous Position in Recycled Fiber

• 2.5 million tons of paper products shipped in
  2004
• Over 65 of recycled content
• Significant negotiating power with recycled fiber
  suppliers
• Top 10 worldwide and largest Canadian purchaser
  (1)
• Current strategy includes
• Volume protection/contractual agreements
• Inventory management
• Financial hedges
• Optimization of supply chain logistics

Well-positioned to benefit from increasing market
demand for papers and boards with recycled
content
(1) Includes 100 of Norampac purchases which
Cascades manages.
12
Mr. Christian DubéVice-President and Chief
Financial OfficerCascades
13
Market Data
Listing TSXCAS (52 week range - 11.62
14.47) Capitalization Shares
outstanding 81.7 million shares Market
capitalization CAN1.0 billion Net Debt
CAN1.2 billion Enterprise value
(EV) CAN2.2 billion
Management has a 40 equity interest in the
company
Closing price
14
Stock Performance
May 2004
Cascades announces
strategic plan details
July 10, 2000
Cascades announces the
proposal to privatize its
subsidiaries Paperboard
Industries International, Perkins
Papers and Rolland

The 2004 strategic plan can be as important a
milestone than the 2000 privatization of the
public Subs
15
Financial Overview
16
Cascades Financials at a glance
1) Data above excludes specific items such as
charges for impairment of assets, charges for
facility or machine closures, debt restructuring
charges, gain or loss on sale of business unit,
unrealized gain or loss on derivative financial
instruments that do not qualify for hedge
accounting, foreign exchange gain or loss on
long-term debt, impairment charges and other
significant items of an unusual or non-recurring
nature.
17
Cascades Key Financial Attributes

• Favorable exposure to Packaging and Tissue
• Currently benefiting from positive momentum
• Additional profitability from acquisitions and
  increased converting integration
• Committed to deleveraging
• Cash-flow generator throughout the cycles
• Efficient capital allocation through
• Decentralization and market price transfer
• Return on asset approach to capital allocation
• Strong balance sheet
• Taking advantage of US denominated debt
• Well funded pension funds

Superior financial performance compared to peers
18
Upward Trend in Financial Performance
EBITDA (million C)
Sales (million C)
Upward trend continues despite 2003
19
Strong Free Cash Flow Generation
Strong free cash flow allows for growth without
additional debt
20
Evolution of Financial Ratios
Credit Ratings BB BA1 BB,BA3
BBB (low)p
Deleveraging benefiting from recent
acquisitions, momentum in the cycle and strict
cash management
21
2004 versus 2003 Bridge Analysis
(in millions of Canadian dollars)
16
- 46
259
19
250
32
- 67
55
2003
Higher
Higher
Other Cost Reductions
2004
Business Acquisitions
FX
Raw materials (Price)
Shipments
Selling Prices (Price Mix)
Higher volumes, selling prices, acquisitions and
cost reductions more than compensated for FX
and raw materials
22
2004 versus 2002 Bridge Analysis
(in millions of Canadian dollars)
85
141
2
424
162
38
259
13
2002
Higher
Higher
Other Cost Reductions
2004
Business Acquisitions
FX
Raw materials (Price)
Shipments
Selling Prices (Price Mix)
Represents cumulative analysis of 2002 vs 2003
2003 vs 2004
23
Comparative EBITDA Evolution
( in millions of Canadian dollars)
2002
Ebitda 424M
2003
Ebitda 250 M
2004
Ebitda 259M
?
24
?
?
20
Q3
Q4
Q1
Q2
Data above excludes specific items such as
charges for impairment of assets, charges for
facility or machine closures, debt restructuring
charges, gain or loss on sale of business unit,
unrealized gain or loss on derivative financial
instruments that do not qualify for hedge
accounting, foreign exchange gain or loss on
long-term debt, impairment charges and other
significant items of an unusual or non-recurring
nature.
Despite Reduction in Q4, Momentum is shifting
Comparative quarters are showing sustained
improvement
?
24
EBITDA Drivers

• Ongoing Cost Reductions
• Energy Efficiencies
• Procurement Programs
• Focus on non performing assets
• Divestitures/Alternatives for Fine Papers
• Profitability Improvement targets for specific
  mills
• Increased Volumes
• Good momentum in Packaging and Tissue
• Full impact of the acquisition of new converting
  assets
• Higher Selling Prices
• Announced price increases in Tissue
• Implementation of previously announced Increases
  in Packaging
• Boxboard, Kraft papers, ()

EBITDA drivers will support Shift In Momentum
25
Superior Financial Performance Compared to Peers
Return on Capital Employed (ROCE) - 1999 2003
ROCE ()
Cascades is one of the top performers of the
Industry

Defined as EBITDA / (net fixed assets operating
W/C other assets), Source CIBC World Markets.
26
Comparable companies multiples
Packaging Comparable Companies
Tissue Comparable Companies
Avg 7.2x
Avg 8.1x
8.8
x
Caraustar
10.2
x
Kimberly-Clark
6.9
x
Smurfit Stone
7.8
x
Potlatch
EV / 2005E EBITDA
EV / 2005E EBITDA
6.5
x
Packaging Corp. of America
6.3
x
Georgia Pacific
6.4
x
MeadWestvaco
6.1
x
Cascades
6.1
x
Cascades
0
x
2
x
4
x
6
x
8
x
10
x
12
x
0
x
2
x
4
x
6
x
8
x
10
x
12
x
Fine Paper Comparable Companies
Private Label Comparable Companies
Avg 6.5x
Wausau-Mosinee ()
8.3
x
Avg 10.1x
7.1
x
International Paper
11.6
x
Cott
6.8
x
Weyerhaeuser
6.8
x
Boise Cascade
EV / 2005E EBITDA
6.5
x
MeadWestvaco
10.3
x
KCP Income Fund
EV / 2005E EBITDA
6.3
x
Georgia Pacific
Associated Brands
6.1
x
Cascades
8.4
x
Income Fund
5.8
x
Fraser Papers
5.7
x
Domtar
6.1
x
Cascades
5.3
x
PH Glatfelter
0
x
2
x
4
x
6
x
8
x
10
x
12
x
14
x
0
x
2
x
4
x
6
x
8
x
10
x
Notes () EBITDA estimate based on 2005E revenue
and LTM EBITDA margin as at Sept 28, 2004.
Averages exclude Cascades. Source TD Newcrest.
27
Conclusion
28
Strategies

• Follow up on 2004 Strategic review
• Focus on our core segments, which offer strong
  margins and growth potential
• Improve customer service and product innovation
• Capitalize on our previous acquisitions (Tissue
  Packaging)
• Increase the level of converting integration
• Monitor/divest less performing assets
• Developing solutions to face current challenges
  (C, energy, fiber)
• Procurement programs to reduce costs
• Optimize energy consumption
• Increase contractual agreements, inventory
  management and invest in more efficient equipment
• Various hedging programs
• Deleveraging our balance sheet
• Benefit from momentum in cycle
• Initiatives to optimize working capital
• Maintain disciplined Capex
• Divest/Optimize non-core assets
• Acquisition strategy
• Opportunistic and selective

29
Cascades profile is unique

• Dedicated management and Entrepreneurial culture
• Focus on attractive packaging and tissue segments
• Significant degree of converting integration
• Advantageous position in recycled fiber

Cascades has been delivering superior financial
performance
30
Appendix
31
Earnings Sensitivity
32
Shipment Pricing Data
33
Shipments
Business acquisitions provide for a higher
operating rate and additional volume in
packaging and tissue
34
Commodity prices
Momentum may continue given the current economic
outlook
35
Information on Recycled Fiber
36
A Customers Perspective

• Reduced demand for virgin wood fiber
• Large paper suppliers have set specific targets
  for post consumer waste products available for
  sale (Staples has a 30 target).
• Large corporations are increasingly implementing
  "Buy Recycled" and governance policies.
• Protecting the worlds forest resources
• Consumers are increasingly avoiding endangered
  forest fibre sources.
• Consumers are questioning the origin of supply
  and harvesting methods (Forest Stewardship
  Council Certification).
• New technologies are making recycled content more
  attractive
• Waste paper based products offer increasing
  brightness, smoothness and run ability on
  printing equipments.
• RD efforts are delivering products offering
  interesting alternatives to virgin board (ex
  Cascades ArctiKoat).

37
A Manufacturers Perspective

• China is positioning itself to manage its
  appetite
• Chinese recovery rates currently anaemic as for
  other fast growing nations. Recovery rates will
  increase with prices
• Low cost pulp capacity under construction will
  start-up in China, South America and Europe and
• China is speeding-up national forestry
  development.
• Changing dynamics in North America and Recovery
  Trends
• U.S. recovery rates currently stand at 50.3,
  A.F.P.A. has set 55 target for 2012. Prices will
  drive recovery rates.
• Recycled production capacity permanently closed
  in North America.

38
The Changing Dynamics of Paper Recovery
North-American Recovery Rates 1993 2003 O
ld Corrugated Containers 59.1 75.8 Old
Newspapers 50.3 73.4 Office
Papers 29.9 48.3 Printing-Writing
Papers 29.3 39.4 Total Paper
Paperboard 38.7 50.3
Source Recovered Paper Statistical Highlights,
2004 Edition, AFPA.
39
Strong Correlation Between Finished Product
Prices and Recycled Paper Prices
Consistent trend over the past 10 years
Finished Product Price (Linerboard) US vs.
Recycled Paper Price (OCC) US
Linerboard, 42-lb, East
Old Corrugated Cardboard, FOB Seller's Dock
Correlation results in more stable operating
margins for recycled fiber producers versus
integrated fiber producers
Note Quarterly change based on four-quarter
rolling average
40
Competitive Landscape
41
Competitors
Top 10 North American Tissue Producers
Company
Capacity
Mkt Share
(000 tons)
1
Georgia-Pacific
2,777
34.6
2
Kimberly-Clark
1,433
17.8
3
Procter Gamble
1,154
14.4
4
550
6.7
Cascades
SCA
5
537
6.7
6
Kruger
311
3.9
7
Irving Tissue
196
2.4
8
Cellu Tissue
193
2.4
9
Potlatch
163
2.0
10
Marcal Paper
142
1.8
Source Paperloop Cascades
42
Competitors
43
Competitors
44
Competitors
45
Other
46
Cascades Energy ProfileNatural Gas Spread
Analysis
Increasing spread in recent quarters
Source Pulp and Paper Week and Norampac
47
A Young and () experienced Team
The Lemaire Brothers are implicated since
inception in 1964
Boxboard
Norampac
Tissue
Speciality
Fine papers
Denis Jean Age 56 2002
Suzanne Blanchet Age 47 1978
Marc-André Dépin Age 39 1990
Éric Laflamme Age 40 1987
Mario Plourde Age 43 1984
The depth of Cascades management team is one of
its biggest assets
Age of Cascades groups presidents and year they
joined Cascades