West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q1 2020 Earnings Presentation
9 slides from West Fraser Timber's earnings presentation, Apr 29, 2020
Slide 1: Q1 Earnings Presentation
Q1 Earnings Presentation April 2020
Slide 2: Forward-looking statements and non-IFRS measures
2 General: This presentation and comments associated with it contains Accordingly, readers should exercise caution in relying upon forward- historical information, descriptions of current circumstances and looking- statements and WFT undertakes no obligation to publicly statements about potential fu
Slide 3: Demand conditions
Demand conditions 3 Leading indicator of Remodeling Activity U.S. Housing Starts (not seasonally adjusted) $B 4 Qtr Moving Improvements and Repairs 140 $340 8.0% 120 $330 7.0% 4 Qtr Moving rate of Change $320 6.0% 100 $310 M Starts 80 5.0% Seasonally adjusted: $300 60 4.0% 2018: 1,250 $290 40 2019:
Slide 4: Supply conditions
Supply conditions 4 Billion fbm Lumber Supply North America Curtailments Impact MMfbm 80 3,500 Down 5% 60 3,000 Down 1% 2,500 40 Down 11% Up 2% 2,000 Announced Down 26% to date in Q1 20 1,500 0 1,000 BC Canada US US Total NA 500 South 0 2018 2019 2018 2019 Q12020 Source: WWPA, SFPA, COFI Source: Ana
Slide 5: Consolidated Financial Results
Consolidated Financial Results 5 $ Millions Adjusted EBITDA Q1-20 Q4-19 Q1-20 Q4-19 Lumber $ 106 $ 69 Sales $ 1,195 $ 1,129 Panels 8 13 Cost and Expenses 1,182 1,152 Restructure/Impairment - 8 Pulp & Paper 11 (1) Operating earnings 13 (31) Corporate/Other 2 (1) Finance Expense (16) (13) Total $ 127
Slide 6: Q1 Consolidated Adjusted EBITDA Reconciliation
Q1 Consolidated Adjusted EBITDA Reconciliation 6 $ millions Improved pricing and fibre costs
Slide 7: Q1-20 versus Q4-19
Q1-20 versus Q4-19 7 $ millions unless Q1 2020 Q4 2019 Change otherwise indicated BC operations on full schedule most of the quarter Lumber Production (MMfbm) 1,501 1,423 78 compared to variable operating schedules in Q4 Increase SYP shipments, some delays in SPF from rail Lumber Shipments (MMfbm) 1
Slide 8: Liquidity
8 Liquidity Available liquidity Scheduled maturities $1,000 $900 $800 $800 $700 $600 $600 $500 $400 $400 $300 $200 $200 $100 $0 $0 2017 2018 2019 Q119 Q419 Q120 2020 2021 2022 2023 2024 Bank lines Cash Additional Facility Term loan Notes Revolvers Financial Covenants Additional liquidity levers 60%
Slide 9: Summary
Summary 9 Q1 2020 Recap Balance of Year Focus ✓ Fibre costs continue to improve ✓ Operational excellence on variable sequentially schedules ✓ Pulp markets showing signs of ✓ Preserve and manage liquidity improvement compared to conservatively, working capital second half of 2019 contraction ✕ COVID-