Interfor Corporation · TSX:IFP
Interfor — Shareholder Meeting (April 2010)
11 slides from Interfor's shareholder meeting presentation, Apr 22, 2010
Slide 1: 2010 Annual General Meeting
2010 Annual General Meeting April 22, 2010
Slide 2: 2009 in Review
2009 in Review Global financial crisis collapse of U.S. housing market Housing starts at 554,000 units; lowest level in more than 50 years Lumber prices down 18% year-over-year Interfor lost $23.9 million or $0.51 per share Book value at $7.60 per share vs. $8.62 at the end of 2008 Deliver
Slide 3: 2009 in Review
2009 in Review Decision to curtail operations in 2008 was correct In spite of losses, Interfor generated $5.0 million in cash from operations (after working capital changes) in 2009 Net debt was reduced by $27 million; ratio of net debt to invested capital at 28% Deliver Superior Returns on In
Slide 4: 2009 in Review
2009 in Review Significant progress was made on “strategic initiatives” in 2009 Queensboro was sold Adams Lake was completed Grand Forks was re-commissioned Important in-roads were made into Chinese market Financing agreements were extended Achievements make Interfor much stronger Deli
Slide 5: Adams Lake Sawmill - Dawn of a New Era
Adams Lake Sawmill - Dawn of a New Era Adams Lake began start-up on April 20th, 2009 4
Slide 6: Adams Lake Sawmill - Dawn of a New Era
Adams Lake Sawmill - Dawn of a New Era Final stage of Master Plan Prior stages: new kilns and planer, energy system, site improvements New mill approved in April 2007; capital budget $100 million Ground broken: August 2007 Start-up: April 20, 2009 Record start-up Deliver Superior Returns
Slide 7: Adams Lake Sawmill - Dawn of a New Era
Adams Lake Sawmill - Dawn of a New Era Adams Lake Sawmill Startup (Mbf / hour) Proforma Actual Mbf / hour Original Startup Target Number of Days Adams Lake exceeded proforma on its 17th shift Deliver Above Average Returns on Invested Capital 6
Slide 8: Deliver Superior Returns on Invested Capital
Q1 2010 in Review Business conditions different from 2009 Housing market has stabilized, albeit at historically depressed levels Lumber prices up 30% vs. Q4; up 74% vs. Q1 „09 Higher log costs, weak markets for cedar and rising C$ offset price gains (in part) Interfor lost $3.4 million or
Slide 9: Outlook
Outlook Lumber prices continue to firm; SPF > US$300 Duty rates dropping to 10% Considerable uncertainty remains foreclosures end of housing stimulus higher interest rates Higher C$ adds to challenge Deliver Superior Returns on Invested Capital 8
Slide 10: Outlook
Outlook Matching production to demand is key Interfor will focus on cash; realizing on benefits of strategic activities Castlegar sawmill scheduled for July start-up; should make a positive contribution Deliver Superior Returns on Invested Capital 9
Slide 11: Interfor remains focused on building value for its shareholders
Closing Interfor remains focused on building value for its shareholders Deliver Superior Returns on Invested Capital 10