West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q1 2019 Earnings Presentation
12 slides from West Fraser Timber's earnings presentation, April 2019
Slide 1: Q1 2019 Earnings Presentation
Q1 2019 Earnings Presentation April 2019
Slide 2: Forward-looking Statements and Non-IFRS Measures
2 General: This presentation and comments associated with it “Risks and Uncertainties”, in our MD&A and may differ materially contains historical information, descriptions of current from those anticipated or projected. Reference should be made circumstances and statements about potential future dev
Slide 3: Demand conditions U.S.
Demand conditions U.S. 3 U.S. Housing Starts (not seasonally adjusted) Leading indicator of Remodeling Activity Monthly $B 4 Qtr Moving Improvements and Repairs 140 $350 8.0% $340 7.0% 4 Qtr Moving rate of Change 120 $330 6.0% 100 Repair and renovation growth $320 5.0% 80 continues Seasonally adjust
Slide 4: US South Poor Weather Fallout
US South Poor Weather Fallout 4 2018 2019 5 Difficult weather conditions late 2018 and early 2019 Source: National Center for Environmental Information
Slide 5: Supply conditions
Supply conditions 5 Billion fbm Lumber Supply MMfbm North America Curtailments 70 400 Up 0.5% 60 350 50 300 40 250 Mix of Up 3.5% temporary Down 3.2% 200 and 30 150 permanent 20 Down 5.5% 100 10 50 0 0 BC Canada US Total NA 2018Q4 2019 Q1 2017 2018 Source: Western Wood Products Association, manageme
Slide 6: Consolidated Financial Results
Consolidated Financial Results 6 $ Millions Adjusted EBITDA Q1-19 Q4-18 Q1-19 Q4-18 Lumber $ 84 $ 68 Sales $ 1,241 $ 1,274 Panels 15 9 Cost and Expenses 1,231 1,259 Operating earnings 10 15 Pulp & Paper 11 47 Finance Expense (11) (9) Corporate/Other - (4) Other (5) 22 Total $ 110 $ 120 Earnings befo
Slide 7: Q1 Lumber Adjusted EBITDA Reconciliation
Q1 Lumber Adjusted EBITDA Reconciliation 7 Lower shipments and cost headwinds offset by higher prices
Slide 8: Q1 Pulp and Paper Adjusted EBITDA Reconciliation
Q1 Pulp and Paper Adjusted EBITDA Reconciliation 8 Focused on recovering from downtime in NBSK
Slide 9: Q1 Consolidated Adjusted EBITDA Reconciliation
Q1 Consolidated Adjusted EBITDA Reconciliation 9 Offsetting results in lumber and pulp
Slide 10: Q1-19 versus Q4-18
Q1-19 versus Q4-18 10 $ millions unless Q1 Q4 Change otherwise indicated 2019 2018 SPF shipments lower on market conditions, SYP Lumber Shipments (MMfbm) 1,444 1,569 (125) shipments rebound slightly from Q4 (8%) Pulp Shipments (Mtonnes) 318 287 31 BCTMP shipments higher from vessel delay in Q4-18 11
Slide 11: Liquidity
Liquidity 11 Available liquidity Scheduled maturities $600 $900 $800 $500 $700 $600 $400 $500 $300 $400 $300 $200 $200 $100 $100 $0 2017 2018 Q1-17 Q1-18 Q1-19 $0 2019 2020 2021 2022 2023 2024 Bank lines Cash Demand facility Term loan Notes Revolver Ample financial flexibility Cash consists of cash
Slide 12: Summary
Summary 12 ✕ Extreme cold weather in Western ✓ Transportation improved from Canada and high rainfall in US prior year South tempered demand and impacted operations ✓ Maintained financial flexibility, executed balanced capital ✕ Delayed start to 2019 building allocation strategy season weighs on lumb