West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Shareholder Meeting (2011)
52 slides from West Fraser Timber's shareholder meeting presentation, 2011
Slide 1: Welcome to the West Fraser 2011 Annual General Meeting
Welcome to the West Fraser 2011 Annual General Meeting
Slide 2: Summary Financials
West Fraser Summary Financials ($ millions) 2010 2009 Net Earnings 166 (341) Sales 2,900 2,400
Slide 3: Summary Financials
West Fraser Summary Financials ($ millions) 2010 2009 Net Earnings 166 (341) Sales 2,900 2,400 Operating Cash Flow 370 96
Slide 4: Total Debt
West Fraser Total Debt 800 700 Total Debt 600 Reduced by $360 Million 500 In 2010 $ millions 400 300 200 100 0 2008 2009 2010
Slide 5: Debt to Capitalization Ratio
West Fraser Debt to Capitalization Ratio 30 24% 25 20 Percent 15 8% 10 5 0 2009 2010
Slide 6: Capital Expenditures
West Fraser Capital Expenditures $316 350 million 300 Green Transformation Funding 250 $ millions 200 150 100 50 0 2008 2009 2010 2011 Approval
Slide 7: Annual Dividend
West Fraser Annual Dividend 0.80 0.70 0.60 0.50 $ / share 0.40 0.30 0.20 0.10 0.00 2008 May-09 Sep-10 Feb-11
Slide 8: Sales
West Fraser Sales 3,500 20% Increase 3,000 2,500 $ millions 2,000 1,500 1,000 2004 2010
Slide 9: 2010 Lumber Production
West Fraser 2010 Lumber Production 6.0 5.0 Billion Board Feet 4.0 3.0 2.0 1.0 0.0 West Fraser Weyerhaeuser Canfor
Slide 10: Success Factors
West Fraser Success Factors
Slide 11: Success Factors: Great people
West Fraser Success Factors Great people
Slide 12: Success Factors: Guiding Principles
West Fraser Success Factors Great people Guiding Principles
Slide 13: Guiding Principles: Cost control
West Fraser Success Factors Great people Guiding Principles • Intense focus on cost control
Slide 14: Guiding Principles: Conservative balance sheet
West Fraser Success Factors Great people Guiding Principles • Intense focus on cost control • Conservative and flexible balance sheet
Slide 15: Guiding Principles: Reinvestment
West Fraser Success Factors Great people Guiding Principles • Intense focus on cost control • Conservative and flexible balance sheet • Reinvestment in our operations
Slide 16: U.S. Housing Starts
Thousands 1,000 1,500 2,000 2,500 3,000 500 0 Jan-47 Jan-51 Jan-55 Jan-59 Jan-63 Jan-67 Jan-71 Jan-75 80 Year Low Jan-79 Jan-83 Jan-87 (Seasonally Adjusted 1947 - 2010) Jan-91 U.S. Housing Starts Jan-95 Jan-99 Jan-03 Jan-07 Jan-11
Slide 17: US Housing Inventory
West Fraser US Housing Inventory 1990 - 2010 5,000 4,500 4,000 3,500 3,000 (000) 2,500 2,000 1,500 1,000 500 0
Slide 18: US Dollar Lumber Price
West Fraser US Dollar Lumber Price 1981 - 2010 600 500 400 $/mfbm 300 200 100 0
Slide 19: North American Lumber Production
North American Lumber Production 80 Production down 37% 60 Billion board feet 40 20 0 2005 2006 2007 2008 2009 2010 Canada United States
Slide 20: SPF Shipments from Canada to China
SPF Shipments from Canada to China 2,500 2,000 1,500 MMfbm 1,000 500 0 2005 2010 Source: China Wood Imports & Exports Data China is a major consumer of Canadian softwood lumber
Slide 21: 2010 SPF Shipments
West Fraser 2010 SPF Shipments Asia USA Canada
Slide 22: NBSK List Prices
West Fraser NBSK List Prices 2006 - 2010 1,100 Cdn NBSK 1,000 900 800 $/tonne 700 US NBSK 600 500 400
Slide 23: Canadian Dollar
West Fraser Canadian Dollar 2009 - 2010 1.02 1.01 1.00 0.99 $/tonne 0.98 0.97 0.96 0.95 0.94 0.93
Slide 24: Summary Financial Performance
West Fraser Summary Financial Performance 2006 - 2010 Highest EBITDA Highest EBITDA Margin Compared to peer group of Canfor, Interfor, Tembec, Norbord
Slide 25: Summary Financial Performance
West Fraser Summary Financial Performance 2006 - 2010 Highest EBITDA Highest EBITDA Margin Highest Return on Capital Compared to peer group of Canfor, Interfor, Tembec, Norbord
Slide 26: Summary Financial Performance
West Fraser Summary Financial Performance 2006 - 2010 Highest EBITDA Highest EBITDA Margin Highest Return on Capital Highest Total Shareholders’ Return Compared to peer group of Canfor, Interfor, Tembec, Norbord
Slide 27: Canadian Lumber Operating Rate 2010
West Fraser Canadian Lumber Operating Rate 2010 100% 95% Low-cost structure 90% allows for higher 85% operating rates in Operating Rate 80% down market 75% 70% 65% 60% 55% 50% WFT B.C. Canada Canada Interior
Slide 28: Northern Lodge, Prince George
Northern Lodge, Prince George
Slide 29: Serious & Disabling Injuries
West Fraser Serious & Disabling Injuries 50 Serious Injuries Down 19% 40 30 Injuries 20 10 0 2009 2010
Slide 30: The Canadian Boreal Forest Agreement
The Canadian Boreal Forest Agreement
Slide 31: The Kitlope
The Kitlope
Slide 32: Purchased Energy Intensity
West Fraser Purchased Energy Intensity Solid Wood (2000 – 2010) Pulp (2000 – 2010) 1.2 47% Reduction 14.0 22% Reduction 1.0 12.0 10.0 0.8 g j/m f b m 8.0 g j/m fb m 0.6 6.0 0.4 4.0 0.2 2.0 0.0 0.0 2000 2010 2000 2010
Slide 33: Greenhouse Gas Intensity
West Fraser Greenhouse Gas Intensity Solid Wood (2000 – 2010) Pulp (2000 – 2010) 60% Reduction 35% Reduction 30.0 0.5 0.5 25.0 0.4 20.0 0.4 C O e /1 0 0 0 m 3 0.3 C O e /to n n e 15.0 0.3 0.2 10.0 0.2 5.0 0.1 0.1 0.0 0.0 2000 2010 2000 2010
Slide 34: Total Greenhouse Gas Emissions
West Fraser Total Greenhouse Gas Emissions (2000 – 2010) 700 600 30% Reduction 500 COe (000 tonnes) 400 300 200 100 0 2000 2010
Slide 35: Mountain Pine Beetle
Mountain Pine Beetle
Slide 36: SLA Arbitration
West Fraser SLA Arbitration
Slide 37: Industry Leadership, Teamwork, Passion, Shared Values
West Fraser Industry Leadership Teamwork Passion Shared Values
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Slide 41: Outlook
West Fraser Outlook
Slide 42: Outlook: U.S. Housing Market Will Recover
West Fraser Outlook U.S. Housing Market Will Recover
Slide 43: Outlook: Growing Demand for Lumber in Asia
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia
Slide 44: Outlook: Declining Timber Supply
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia Declining Timber Supply
Slide 45: Outlook: Best Environmental Building Product
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia Declining Timber Supply Lumber – Recognition as Best Environmental Building Product
Slide 46: Outlook
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia Declining Timber Supply
Slide 47: Outlook
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia Declining Timber Supply Lumber – Recognition as Best Environmental Building Product
Slide 48: Outlook: Bioenergy
West Fraser Outlook U.S. Housing Market Will Recover Growing Demand for Lumber in Asia Declining Timber Supply Lumber – Recognition as Best Environmental Building Product Bioenergy
Slide 49: ie Way,
=) TD ie Way,
Slide 50: Slide 50
Slide 51: Slide 51
Slide 52: West Fraser
td West fraser