West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Shareholder Meeting (April 2025)
29 slides from West Fraser Timber's shareholder meeting presentation, Apr 30, 2025
Slide 1: Annual General Meeting
Annual General Meeting April 2025 Quesnel, B.C. Cover image: Allendale OSB Division located in Fairfax, South Carolina, United States
Slide 2: Financial Information and Forward Looking Statements
Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q1 2025 interim Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and is discussed in our Managements’ Discu
Slide 3: Forward-looking statements risk factors
By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts, and other forward-looking statements will not occur. Factors that could cause actual resul
Slide 4: 2024 in Review
2024 in Review 4
Slide 5: West Fraser Business Strategy
West Fraser Business Strategy Our business strategy focuses on profitability and excellence in people, driven by three key elements. TS B FI O EI PR NG • Focusing on being low cost G LO TIN W ES CO NV • Maintaining a strong balance sheet ST REI • Reinvesting our profits into the business STR ONG BAL
Slide 6: 2024 Achievements
2024 Achievements Putting Safety First • Achieved the lowest recorded rates of overall hand injuries and saw a 33% decrease in life-altering injuries Continued Growth Through Investment • Invested $487 million of capital into the business, included construction capital for the Henderson mill moderni
Slide 7: Lhtako Quesnel 2024 BC Winter Games
Lhtako Quesnel 2024 BC Winter Games 7
Slide 8: Historic Adjusted EBITDA
Historic Adjusted EBITDA * Proforma Historical Combined Adj EBITDA (US$ millions) Segment Adj EBITDA Mix (US$ millions, excl. Corporate) Lumber NA EWP EU EWP P&P 5,000 1,800 100% Ainsworth 3 7 9 2 4,500 Norbord 1,600 80% 6 4,000 West Fraser 2 1,400 U.S Housing starts (000s, RHS) 125 3,500 60% 1 1,20
Slide 9: Continuous Improvement Through Portfolio Evolution and Optimization
Continuous Improvement Through Portfolio Evolution and Optimization Actively seeking mill portfolio optimization through acquisitions, divestitures, curtailments/closures* and strategic capital West Fraser – Corporate Development Timeline (late 2021 thru 2024) +305MM FBM +170M Tonnes Angelina Forest
Slide 10: Why Investors Should Own West Fraser
Why Investors Should Own West Fraser
Slide 11: Reasons to Invest in West Fraser
Reasons to Invest in West Fraser One of the world’s largest producers of sustainable wood-based building products Offers financial Serves markets Has a track record Has the scope, Is positioned to Has an attractive resilience through with attractive of disciplined and scale, and benefit from strong
Slide 12: Resilience from Product and Geographic Diversity
Resilience from Product and Geographic Diversity 12
Slide 13: Facilities in Canada, US, UK and Europe
facilities in Canada, the United States, the United Kingdom and Europe ~10,000 Employees Lumber OSB Mills Engineered Pulp & Mills Wood Mills Newsprint Mills
Slide 14: Serves Markets with Attractive Longer-term Fundamentals
Serves Markets with Attractive Longer-term Fundamentals 14
Slide 15: U.S. Housing Start Estimates
U.S. Housing Start Estimates (Thousands) 2,000 1,500 US Housing Starts (‘000s) 1,000 500 0 2013 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 2019 2020 2021 2022 2023 2024 2025F 2026F Actual Forecast Range (ex-High & Low) Source: U.S. Census Bureau, indust
Slide 16: U.S. Leading Indicator of Remodeling Activity
U.S. Leading Indicator of Remodeling (R&R) Activity Homeowner Improvements & Repairs Predicting a modest recovery in 2025 Four-Quarter Moving Totals Billions ($USD) 550 526 Homeowner Improvement & Repairs (Billions $USD) 515 514 513 511 510 511 513 505 506 512 501 499 503 500 490 458 450 428 407 396
Slide 17: North American Lumber Supply at 10-year Lows
North American Lumber Supply at 10-year Lows BC Canada Other Canada US South Other US Offshore Imports US Housing Starts (R axis) Since the pandemic highs of production / 80 2.5 demand, 2024 marks the 3rd consecutive year of contraction in production. 70 U.S. Housing Starts (millions) 2.0 60 Reducti
Slide 18: Disciplined and Balanced Allocator of Capital
Disciplined and Balanced Allocator of Capital 18
Slide 19: Capital Allocation Lookback
Capital Allocation Lookback • Multi-year history of cash flow generation is strong • Significant investments in maintaining, expanding and improving the business at ~40% of cash generated • Excess capital returned to shareholders of ~50% of cash flow, heavily weighted to buybacks, influenced by two
Slide 20: Liquidity
Liquidity ($millions) Available Liquidity* Scheduled Maturities 3,000 1,200 West Fraser Timber is 900 considered investment $USD Millions $USD Millions 2,000 600 grade by three leading 1,000 rating agencies. 300 0 0 Agency Rating Outlook '20 '21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2025 2026 2027
Slide 21: Scope, Scale and Expertise to Unlock Growth
Scope, Scale and Expertise to Unlock Growth 21
Slide 22: Update – Allendale OSB Mill
Update – Allendale OSB Mill Project Overview • Idled mill acquired Q4 2021 for $280M • Large-scale mill, strategically located near abundant, low-cost fiber • Front-end of mill rebuilt and additional debottlenecking complete at a capital cost of $83M • Mill re-started Q2 2023 with up to a 3- year ra
Slide 23: Positioned to Benefit from Strong Sustainability Fundamentals
Positioned to Benefit from Strong Sustainability Fundamentals 23
Slide 24: 2024 Sustainability Highlights
2024 Sustainability Highlights ENVIRONMENT SOCIAL GOVERNANCE Commissioning of a solar Signed a long-term fibre Embedding sustainability farm at our Dudley, Georgia, supply and forest throughout our operations sawmill in January helps the management agreement including managing energy mill work towar
Slide 25: Attractive Record of Creating Shareholder Value
Attractive Record of Creating Shareholder Value
Slide 26: Performance vs. Peers and Relevant Indices
Performance vs. Peers and Relevant Indices Enterprise Value (US$ billions) +142% $6 +152% $4 $2 +240% -35% $0 2005 YE 2024 YE West Fraser Peer 1 Peer 2 Peer 3 Source: FactSet Annualized Total Shareholder Return (US$, dividends reinvested) Jan-01-06* to Apr-14-25 10.0% 10% 8.9% 8% 7.3% 6% 4.7% 4% 2.9
Slide 27: Concluding Remarks and Q&A
Concluding NM & : x 7 Remarks and ‘ipa ue O&A
Slide 28: West Fraser Timber Co. Ltd.
West Fraser Timber Co. Ltd. These materials have been prepared by Management of the Company. No regulatory authority has approved or disapproved of the contents of these materials. These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company
Slide 29: Presentation Notes
Presentation Notes External Information: Where this presentation quotes any information or statistics from any external source, it should not be interpreted that West Fraser has adopted or endorsed such information or statistics as being accurate. Some of the information presented herein is based on
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