Weathering a Tsunami of Structural Change

MarkBadger

ExecutiveVicePresident,CanadaFibersLtd.President,UrbanResourceGroup

April3,2018

CREATING CIRCULAR SOLUTIONS

CREATING CIRCULAR SOLUTIONS

CREATING CIRCULAR SOLUTIONS

CREATING CIRCULAR SOLUTIONS

CREATING CIRCULAR SOLUTIONS

CREATING CIRCULAR SOLUTIONS

CORPORATE PROFILE

700 Employees

19 Facilities

650,000 Tonnes Recovered Annually(Includes >60% of Ontario’s Blue Box material)

28 Years

14 Recovery

4 Recycling

1,000+ Local Customers

ONTARIO INFRASTRUCTURE

RecyclingRecovery

• FordecadesNAwasaddictedtoChina/EastforEndMarkets.• NationalSwordbeganinChina– nowspreadingthroughouttheworld.• “PurityisPermanent”– thischangeisgloballystructural/notcyclical.• Worldwiderestrictedmarkets.• NewsofNAlandfillbansbeinglifted,incinerationandstockpilingreachingPrimeTime.• Meanwhileincomingcontaminationrising.• ThePerfectStorm!

NA Became Addicted to Eastern End Markets

CANADA FIBERS’ RECENT EXPERIENCES

• Municipalitiesweservehavehaduninterruptedflowoftheirmaterialstomarket.• Weareworkingharderthaneveratdevelopingbothdomesticandinternationalmarkets.• Extraeffortscostmoney.• Wherewehaveinstalledleadingtechnologytopurify,newstandardsarebeingmet.• Localmarketdevelopmenttakestimebutisgainingtraction.

Canada Fibers’ Three Part Plan

ADDTECHNOLOGY

COMMUNICATEPROPERBBUSE

DEVELOPLOCALENDMARKETS

I. COMMUNICATE

II. TECHNOLOGY

• Haveaddedintelligentequipment/technologytoMRFsweowntoachievenewpuritystandards.• Haveaddedsortinglaborinfacilitieswherespacepermits.• Massiveinternalcommunicationandtrainingprogramssurroundingpurity.• Willcontinuetopushthetechnologyenvelope.

III. LOCAL END MARKETS

• Workingwithanumberoffirmstocreatealocalcirculareconomyviaourintegratedgroupofcompanies.• Integration- UrbanPolymers:• ProcessingPET,HDPE,PP;and,• Nowcapableofvirgin-likepropertiesthroughadditives/filtertechnologies.

• Brandsincreasinglycommittedtosustainablepackagingandrecycledcontenttargets:• APR’sDemandChampionsProgram:Unilever,Keurig,etc.;and,• Individualbrandgoals:Adidas,Lush,CocaColaetc.

Potential Conclusions• NationalSwordhasbeenacatalystfortheglobalpuritytsunami.• PuritywillbePermanent– asitshouldbe.• Wearejustbeginningtoseeheadlinesabout“indigestion”surroundingpurityTsunami:• Landfill;• Incineration;and,• Stockpiling.

• CanadaFibershasbeenfortunatetohavekeptallmaterialflowingtoendmarkets,albeitwithmassiveincrementaleffort.• Three-prongedplantosurvivethepuritytsunami:

• CommunicateimportanceofproperuseofBB;• AddIntelligentTechnology/Equipment;• Developthelocalcirculareconomy– together.

MarkBadgermarkb@canadafibersltd.com

416-253-0400