Canfor Corporation · TSX:CFP
Canfor — Shareholder Meeting (May 2022)
24 slides from Canfor's shareholder meeting presentation, May 3, 2022
Slide 1: Annual General Meeting
Annual General Meeting MAY 3, 2022 | 11:30 AM PACIFIC Canfor Corporation
Slide 2: Polls Open
Polls Open If you haven’t already cast your vote online or by proxy, please cast your vote now. 2
Slide 3: Polls Closed
Polls Closed The polls on the resolutions are now closed. 3
Slide 4: Welcome
Welcome Today’s meeting is being hosted from the unceded territory of the Coast Salish peoples, including the territories of the Musqueam, Squamish, and Tsleil-Waututh Nations 4
Slide 5: The Canfor Team
The Canfor Team 5
Slide 6: 2021 Financial Overview
2021 Financial Overview Operating Income (Canfor) $2.2 Billion Operating Income (Canfor Pulp) $32 million Before adjusted items 6
Slide 7: 2021 Pulp Markets
2021 Pulp Markets Canfor Pulp had improved results in 2021 due to strengthening global pulp markets in the first half of the year 7
Slide 8: 2021 Pulp Operations
2021 Pulp Operations Production curtailments were taken at Northwood and Taylor In December, the major rebuild of Northwood’s number one recovery boiler began to ensure its safe and reliable operation 8
Slide 9: 2021 Solid Wood Markets
2021 Solid Wood Markets The strength in global lumber market conditions seen at the end of 2020 continued well into 2021 9
Slide 10: 2021 Solid Wood Operations
2021 Solid Wood Operations The high level of demand in North America was driven by significant activity in the residential construction and repair and remodeling sectors 10
Slide 11: Supply Chain
Supply Chain The global supply chain crisis, which began at the outset of the COVID-19 pandemic, increasingly impacted our business in 2021 11
Slide 12: Impairment Tests
Impairment Tests In 2021, Canfor and Canfor Pulp performed impairment tests, which resulted in a combined $300 million impairment charge It reflects the reduced supply of economic fibre in certain regions of Western Canada 12
Slide 13: Acquisitions and Divestitures
Acquisitions From 2018 to 2021, we have added 1.5 billion board feet in annual production capacity through our various acquisitions, mainly in the US and Divestitures South and Europe 13
Slide 14: Balance Sheet and Liquidity
Balance Sheet and Liquidity In 2021 Canfor repaid over $420 million of term debt and ended the year with net cash of $1.1 billion 14
Slide 15: SLA Update
SLA Update At the end of 2021 we had $683 million on deposit with the US Department of Commerce (USDC) USDC announced the preliminary duty rates for the next review period, which is anticipated to be set at a combined rate of 6.75% 15
Slide 16: Q1 2022 Financial Results
Q1 2022 Financial Results Canfor Operating Income of $742 Million Lumber Canfor Pulp Operating Operating Income Income $783 Million -$26 Million 16
Slide 17: Canfor Pulp President & CEO
Canfor Pulp President & CEO At the beginning of the second quarter, Kevin Edgson President and CEO, Kevin Edgson joined Canfor Pulp as Canfor Pulp President and CEO 17
Slide 18: 2022 Pulp and Paper Outlook
2022 Pulp and Paper Outlook Global softwood kraft pulp and bleached kraft paper markets are projected to show continued strength through Q2 2022 18
Slide 19: 2022 Lumber Market Outlook
2022 Lumber Market Outlook Global lumber market fundamentals are expected to remain strong through Q2 2022 19
Slide 20: Digital Transformation
Digital Transformation David Trent We are working to enhance our global supply Senior Vice President, chain network and capabilities, and integrate Supply Chain and those systems into our digital transformation Digital 20
Slide 21: It's our time to lead
It’s our time to lead •Become a global leader in sustainability •Achieve net-zero carbon emissions by 2050 21
Slide 22: Indigenous Partnerships
Indigenous Partnerships Our Indigenous Engagement Strategy is built on a foundation of respect for Indigenous Peoples and an interest in growing their involvement in the resource sector 22
Slide 23: Our People
Our People We have an amazing group of global employees who are dedicated, resilient and committed We are committed to building a diverse, inclusive and equitable workforce 23
Slide 24: Thank You
Thank You Canfor Corporation