Acadian Timber Corp. · TSX:ADN

Acadian Timber — Shareholder Meeting (May 2018)

17 slides from Acadian Timber's shareholder meeting presentation, May 8, 2018

  1. Slide 1: Annual Meeting of Shareholders

    ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 8, 2018

  2. Slide 2: Directors

    DIRECTORS  Phil Brown*  Reid Carter  Malcolm Cecil-Cockwell*  Bruce Robertson*  Saul Shulman*  Ben Vaughan * Independent Directors 2

  3. Slide 3: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Please note that during the course of our presentation and in responding to questions about our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks and future results may differ materially. Fo

  4. Slide 4: Agenda

    AGENDA  Acadian Today  Performance in 2017  Outlook for 2018  Q&A 4

  5. Slide 5: Acadian Overview

    LNA WA) ban Ke 25 Acadian Overview

  6. Slide 6: Acadian Today

    ACADIAN TODAY  Leading supplier of primary forest products in Eastern Canada and Northeastern U.S. – Own 1.1 million acres of private timberlands  Acadian’s business: – Forest Management – Harvesting – Sales and Marketing Forest Areas Acres Hectares Maine Timberlands 300,000 121,000  Timberlands

  7. Slide 7: 2017 Performance

    TIMBER 2017 Performance

  8. Slide 8: 2017 Highlights

    2017 HIGHLIGHTS  Continued solid safety performance; Maine Timberlands employees extended record of accident-free years to seventeen  Successful maintenance of Sustainable Forestry Initiative ® (SFI)  Strong investment performance since inception with annualized 12-year total return of ~13%  Dis

  9. Slide 9: 2017 Product Mix

    2017 PRODUCT MIX  Sales product mix relatively unchanged year-over-year with a slight shift to higher paper sales and lower pulp sales  Softwood sawlogs and hardwood pulpwood markets remained steady and accounted for 42% and 39% of net sales, respectively  Hardwood sawlogs contributed 12% to net

  10. Slide 10: 2017 Financial Highlights

    2017 FINANCIAL HIGHLIGHTS (millions) Year Ended December 31 2017 2016 Net Sales $ 77.8 $ 77.2 Adjusted EBITDA $ 23.3 $ 22.5 Adjusted EBITDA Margin 30% 29% 10

  11. Slide 11: 2017 Financial Highlights

    2017 FINANCIAL HIGHLIGHTS Year Ended December 31 2017 2016 Free Cash Flow per Share $ 1.16 $ 1.16 Dividends Declared per Share $ 1.10 $ 1.00 Payout Ratio 94% 86% 11

  12. Slide 12: Q1 2018 Results

    Q1 2018 RESULTS  Year-over-year financial performance reflects: – Favourable winter harvest conditions and strong softwood sawtimber demand resulting in log harvest volumes up 17% – Weighted average log prices in-line with prior year period – Stronger export markets for biomass products in New Brun

  13. Slide 13: 2018 Outlook

    TIMBER 2018 Outlook

  14. Slide 14: 2018 Outlook

    2018 OUTLOOK  Underlying fundamental driver of pent-up household formation remains highly compelling. Economic forecasters continue to call for steady growth in housing starts, with year-over-year improvements averaging over 7% in 2018  Industry forecasters predict North American sawtimber demand

  15. Slide 15: 2018 Objectives

    2018 OBJECTIVES  Primary Goal: Maximize value for shareholders – Optimize harvest mix in accordance with market opportunities – Focus on reducing costs through more integrated operations – Actively work to improve timber margins – Seek value oriented diversification and growth opportunities – Stead

  16. Slide 16: Questions? Q&A

    Q&A Al I TIMBER ..--cccccccccccccccccccccccccsceessressccsseesseessseeseseseenseessseesseesssnseens 16

  17. Slide 17: Annual Meeting of Shareholders

    ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 8, 2018

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