Interfor Corporation · TSX:IFP
Interfor — Merger or Acquisition (February 2014)
11 slides from Interfor's merger presentation, Feb 10, 2014
Slide 1: Investor Update: Acquisition of Tolleson Lumber
INVESTOR UPDATE ACQUISITION OF TOLLESON LUMBER February 10, 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Information contained herein constitutes forward-looking statements. Forward-looking statements, which include all statements that are not historical facts, are subject to certain risks and uncertainties that could cause actual results to differ materially from those antic
Slide 3: Tolleson - Summary Terms
TOLLESON - SUMMARY TERMS • Total consideration of US$180 million(1). • US$129.9 million cash/retained liabilities • 3.68 million Interfor shares (5.5% pro forma interest) • Tolleson assets include: • 2 sawmills in Georgia with combined capacity of >400 MMBf (once kilns are upgraded) • A remanufactur
Slide 4: Key Observations
KEY OBSERVATIONS • The Tolleson transaction is consistent with Interfor’s strategic focus. • Strong geographic fit with existing operations - synergy potential. • Low cost operations. • Upside opportunity with additional operating hours at Perry. • Immediately accretive. • Strong pro forma capital s
Slide 5: Strong Geographic Fit in Georgia
STRONG GEOGRAPHIC FIT IN GEORGIA Georgia # Company Location 1 1 Interfor Eatonton, GA 2 2 Interfor Thomaston, GA 5 3 3 Interfor Swainsboro, GA 6 4 Interfor Baxley, GA 4 5 Tolleson Perry, GA 6 Tolleson Preston, GA 5
Slide 6: Growing Profile in the US Southeast
GROWING PROFILE IN THE US SOUTHEAST 2011 2013 2014 – Pro Forma US Southeast BC US BC Southern 23% Southern Southeast Interior BC Interior 35% 28% US Pacific Northwest Southern 33% 39% Interior 42% US Pacific BC Coast Northwest 12% 29% BC Coast US Pacific BC Coast 15% Northwest 19% 25% Capacity - 1.6
Slide 7: Recent Growth
RECENT GROWTH Quarterly Lumber Production 2010 - 2013 550 500 Pro forma including Tolleson * 450 400 MMbf 350 300 250 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 (Q1-Q3) 7
Slide 8: Moving Up the Tiers
MOVING UP THE TIERS 2012 Interfor pro forma capacity(1) Production Bbf Source: Wood Markets monthly – March 2013 Note: Interfor’s 2012 production figure includes the total 2012 production of the acquired Rayonier and Keadle mills; GP includes Temple Inland. (1) Based on Interfor pro forma for Tolles
Slide 9: Strong Capital Structure with Significant Liquidity
STRONG CAPITAL STRUCTURE WITH SIGNIFICANT LIQUIDITY • In conjunction with the acquisition, Interfor has increased its bank lines by $50 million and will therefore have total liquidity of approximately $120 million following completion of the transaction. C$ millions Sep ’13 Sep ‘13 Actual Pro Forma
Slide 10: The Transaction Is Right on Strategy
THE TRANSACTION IS RIGHT ON STRATEGY • Lumber focus Growth by • Portfolio strategy Acquisition • Conservative capital structure • Accretion • Integration from log to customers • Fact-based business optimization Operational Excellence • Preferred customer strategy • Active reinvestment • High perform
Slide 11: Questions
QUESTIONS A INTERFOR Building Value 11