Slide 1: Investor Presentation
INVESTOR PRESENTATION July 2025 Photo: Angelina Sawmill, Lufkin, Texas, USA
Slide 2: Financial Information
Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q2 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
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: Q2 2025 Earnings Summary
Q2 2025 Earnings Summary
Slide 5: Consolidated Financial Results
Consolidated Financial Results US$ Millions US$ Millions Q2-25 Q1-25 Q2-25 Q1-25 Adjusted EBITDA* (except EPS) Lumber $15 $66 Sales $1,532 $1,459 EWP - North America 68 125 Costs and expenses (1,576) (1,395) Operating earnings (loss) (45) 64 Pulp & Paper (1) 7 Finance income 4 6 EWP - Europe 2 (2) O
Slide 6: Q2-25 Consolidated Adjusted EBITDA Reconciliation
Q2-25 Consolidated Adjusted EBITDA Reconciliation $200 $195 Inventory write-downs. Lumber: $(26) million NA EWP: $(18) million $18 $2 Pulp & Paper: $(6) million $150 ($60) ($29) $USD M Higher NA OSB shipments. $100 $8 $84 ($50) Lower lumber and OSB pricing. Lumber: $(17) million $50 NA EWP: $(48) mi
Slide 7: Q2-25 versus Q1-25
Q2-25 versus Q1-25 US$ millions unless Q2 2025 Q1 2025 Change Comments otherwise indicated Lumber Shipments (MMfbm) 1,376 1,239 137 Seasonally stronger period of consumption. NA OSB Shipments (MMsf 3/8”) 1,710 1,503 207 Seasonally stronger period of consumption. EU OSB Shipments (MMsf 3/8”) 301 292
Slide 8: 2025 Outlook
2025 Outlook US$ unless indicated otherwise 2025F 2024 Commentary SPF Shipments (MMfbm) 2,600 – 2,800 2,835 Lowered guidance range on softer than expected demand. SYP Shipments (MMfbm) 2,400 – 2,600 2,582 Lowered guidance range on softer than expected demand. N.A. OSB Shipments (MMsf 3/8”) 6,300 – 6
Slide 9: Summary
Summary Q2 2025 Recap Looking Forward • Demand for NA OSB began to soften while demand • Near-term demand for some of our wood products challenges for SYP lumber products generally persisted remains challenging, though longer-term demand fundamentals are favourable • NA OSB and Lumber shipments seas
Slide 10: Why Investors Should Own West Fraser Shares
Why Investors Should Own West Fraser Shares
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
Slide 13: Product & Geographic Diversification – Capacity
Product & Geographic Diversification – Capacity Lumber North America EWP Pulp & Paper UK and Europe EWP 32 facilities 21 facilities 2 facilities 3 facilities SPF 3.1 Bfbm OSB: 8,060 MMsf 3/8” NBSK: 340 Mtonnes OSB 1,515 MMsf 3/8” SYP 3.5 Bfbm Plywood: 760 MMsf 3/8” Newsprint: 135 Mtonnes Particleboa
Slide 14: Wide-ranging Wood Building Products Offering
Wide-ranging Wood Building Products Offering for Principal Homebuilder, Building Construction, and Pro-Dealer Customers LVL Header OSB Webstock Roof Trusses Roof Sheathing Wall Sheathing (Framing Lumber) (OSB/Plywood) (OSB/Plywood) MDF (Trim & Cabinets) Sub-Flooring (OSB/Plywood) Framing Decking Rim
Slide 15: Operating Footprint on Two Continents
Operating Footprint on Two Continents 15
Slide 16: Diverse Industry End-Use Demand
Diverse Industry End-Use Demand with Majority Driven by New Residential and Lower-Volatility R&R Markets North America Lumber End Use 2024 North America OSB End Use 2024 Non-Residential & Other 6% Non-Residential 9% Industrial 10% New Industrial Residential 23% 32% New Residential 57% R&R 24% R&R 38
Slide 17: West Fraser Lumber Capacity Shifting to Lower-risk, Lower-cost Regions
West Fraser Lumber Capacity Shifting to Lower-risk, Lower-cost Regions • US South growth to ~53% of capacity (from ~11% in 2004); lower-cost region, not subject to US trade risk • Exposure to higher-cost B.C. fiber reduced to ~20% of capacity (from ~77% in 2004) 2004: 2.8 Bfbm 2024: 6.6 Bfbm British
Slide 18: 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% 2 Ainsworth 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 1,200
Slide 19: Serves Markets with Attractive Longer-term Fundamentals
Serves Markets with Attractive Longer-term Fundamentals
Slide 20: U.S. Housing Start Estimates
U.S. Housing Start Estimates (Thousands) 1,700 1,601 1,600 1,553 1,500 US Housing Starts (‘000s) 1,420 1,400 1,380 1,367 1,300 1,290 1,250 1,203 1,200 1,174 1,112 1,100 1,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 2026F Actual Forecast Range (ex-High & Low) Source: U.S. Census Burea
Slide 21: Lumber and OSB Not Significant Cost Factors for Home Builders
Lumber and OSB are Not Typically Significant Cost Factors for Home Builders Lumber and OSB products generally comprise 15-20% of the total labour and materials costs to frame a SF house; combined, lumber and OSB costs are typically ~3% of total construction costs and ~2% of new home selling prices**
Slide 22: U.S. Leading Indicator of Remodeling Activity
U.S. Leading Indicator of Remodeling (R&R) Activity Predicting a modest recovery into 2026 550 524 Homeowner Improvement & Repairs 515 514 513 511 510 511 513 510 509 511 516 500 499 502 500 (US$ Billions) 490 458 450 428 407 396 400 383 350 300 250 200 150 100 50 0 2021:Q2 2021:Q3 2021:Q4 2022:Q1 2
Slide 23: Lumber and OSB Supply Overview
Lumber and OSB Supply Overview Lumber OSB • Aggregate North American production growth • It is an estimated three- to five-year process to constrained by log availability, particularly in B.C.; construct a greenfield OSB mill, typically followed it is an estimated two- to three-year process to by a
Slide 24: Illustrative Ecosystem of U.S. South Lumber Mill
Illustrative Ecosystem of U.S. South Lumber Mill By building a new sawmill adjacent to an existing mill we are able to utilize existing infrastructure and skilled labour, enabling a faster ramp-up while reducing financial, operational and execution risks Approximate resources for 250 MMfbm U.S. sout
Slide 25: Serving a Broad Distribution Network and Customer Base
Serving a Broad Distribution Network and Customer Base West Fraser serves thousands of delivery points and customers across North America; the majority of product shipments use rail to transport Canadian SPF and OSB to U.S. markets and trucks to transport SYP and OSB from mills in the U.S. south. We
Slide 26: 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 27: North American OSB Capacity
North American OSB Capacity North America OSB Capacity and U.S. Housing Starts • One OSB mill was permanently closed in 2020 while a press fire at another competitor mill in spring 2022 30 2.5 kept that mill out of commission into H1-24 25 • West Fraser re-started its OSB mill in Chambord, 2.0 Quebe
Slide 28: Disciplined and Balanced Allocator of Capital
Disciplined and Balanced Allocator of Capital
Slide 29: Capital Allocation Priorities
Capital Allocation Priorities • Replace end-of-life assets • Maintain investment-grade rating • Maintain low-cost position • Maintain cash buffer to aid the • Strategically enhance pursuit of opportunistic M&A and product mix, productivity Reinvest Maintain larger-scale strategic growth and capacity
Slide 30: 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 31: Share Repurchases
Share Repurchases Cumulative Investment in Repurchases* (US$ millions) Average repurchase price (CAD$): $5,000 $4,472 $4,549 2013 $44.60 $4,198 $4,327 $4,000 2014 $51.86 $3,000 $2,208 $2,000 2015 $55.57 $829 $890 $890 $1,000 $294 $307 2016 $44.06 $2 $104 $151 $0 2013 2014 2015 2016 2017 2018 2019 20
Slide 32: Lookback on West Fraser’s Capital Reinvested
Lookback on West Fraser’s Capital Reinvested Return on Capital Employed (ROCE %)* 70% 61% 27% 25% 28% 24% 16% 19% average 0% -4% -3% -10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Bloomberg, West Fraser analysis. Nearly 20% average ROCE through the cycle * Note: ROCE = GAAP EBIT / Average
Slide 33: Liquidity
Liquidity ($millions) Available Liquidity* Scheduled Maturities 3,000 1,200 West Fraser Timber is 900 considered investment US$ Millions US$ 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 Q2 2025 2026 2027
Slide 34: Softwood Lumber Duties
Softwood Lumber Duties Final and Preliminary Combined Countervailing and Anti-Dumping Cash Deposit Duty Rates (%) West Fraser – Duties Summary Current Period * Preliminary * Cash on Deposit At Q2 / 25 46.5% with U.S. Department of Commerce (DoC) US $939MM 34.5% Duties Receivable (net, pre-tax) on US
Slide 35: Scope, Scale and Expertise to Unlock Growth
Scope, Scale and Expertise to Unlock Growth
Slide 36: West Fraser’s Growth Strategy
West Fraser’s Growth Strategy • Our objective is to be the premier wood building products company in North America, resulting in long-term value creation. • Our strategy to achieve this objective is to develop and maintain a highly disciplined organization relentlessly focused on continuous improvem
Slide 37: 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 38: M&A Target Attributes
M&A Target Attributes – Seeking “High Quality” As West Fraser develops its M&A pipeline and pursues opportunities, a primary focus is on identifying “high quality” assets/businesses that will lower costs or enhance margins, ideally while also moderating West Fraser’s overall EBITDA variability throu
Slide 39: Positioned to Benefit from Strong Sustainability Fundamentals
Positioned to Benefit from Strong Sustainability Fundamentals
Slide 40: 2024 Sustainability Report
2024 Sustainability Report Our report measures sustainability performance across a variety of environmental, social and governance goals and disclosed targets. Scan the QR code to get our Sustainability Report https://www.westfraser.com/sustainability/sustainability-reporting
Slide 41: 2024 Sustainability Highlights
2024 Sustainability Highlights E N V I R O N M E N TA L SOCIAL GOVERNANCE • Planted 72.4 million seedlings • Strengthened contractor safety • Developed our Biodiversity in Canada, where we manage management Policy forestland • Invested $4.3 million in • Implemented our Sustainable • Reduced Scope 1
Slide 42: Attractive Record of Creating Shareholder Value
Attractive Record of Creating Shareholder Value
Slide 43: Performance vs. Peers and Relevant Indices
Performance vs. Peers and Relevant Indices Enterprise Value (US$ billions) +150% $6 +162% $4 $2 -14% +237% $0 2005 YE Q1-25 YE West Fraser Peer 1 Peer 2 Peer 3 Source: FactSet Annualized Total Shareholder Return (US$, dividends reinvested) Jan-01-06* to Jul-18-25 12% 10.8% 10% 8.8% 8% 7.2% 6% 4.8% 4
Slide 44: Appendix
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Slide 45: Broad Offering of Manufactured Wood Building Products
Broad Offering of Manufactured Wood Building Products SPF SYP OSB Plywood Spruce Pine Fir (SPF) is a species that includes Southern Yellow Pine (SYP), known for its Oriented Strand Board (OSB) is a versatile Plywood is made from multiple layers, or ply, of Engelmann spruce, white spruce, hybrid whit
Slide 46: West Fraser is North America’s Largest Lumber Producer
West Fraser is North America’s Largest Lumber Producer West Fraser West Fraser 2024 Capacity 6.6 Billion feet 9% British Weyerhaeuser Columbia 8% 20% Interfor 7% 2024 N.A. Industry Other 50% Production US South 57 Bfbm 7% Canfor 53% 5% Sierra Pacific Alberta 4% 27% Georgia-Pacific Domtar Hampton Pot
Slide 47: West Fraser is the World’s Largest OSB Producer
West Fraser is the World’s Largest OSB Producer West Fraser OSB Capacity by Region Europe 16% North American OSB Industry* European OSB Industry US 51% 10 Bsf-3/8" Canada Other Other Martco 6% 34% Smartply West 13% 9% 4% Kronospan Fraser 29% Sonae- 47% Huber Arauco 8% 4% Industry Egger Industry Capa
Slide 48: North America Lumber and EWP Adjusted EBITDA Margin
West Fraser North America Lumber and EWP Adjusted EBITDA Margin1 NA Lumber 10-year Average: 17% NA EWP* (proforma) 10-year Average: 29% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 2022 2023 2024 -10% North America Lumber North America EWP (proforma) Note:
Slide 49: Analyst Coverage
Analyst Coverage Organization Analyst Name Contact BMO Capital Markets Ketan Mamtora (212) 883-5121 ketan.mamtora@bmo.com CIBC World Markets Hamir Patel (604) 331-3047 hamir.patel@cibc.com ERA Forest Products John Cooney (604) 267-3021 jcooney@era-research.com Research Raymond James Daryl Swetlishof
Slide 50: Analyst Commodity Price Forecasts
Analyst Commodity Price Forecasts (SPF & SYP US$/Mfbm; OSB US$/Msf) SPF W 2x4 SYP W 2x4 OSB NC 7/16” $550 $509 $425 RJ TD $465 BMO $475 $365 $533 $486 $369 TD Scotia $411 TD $492 $290 $525 $480 $350 ERA ERA $415 CIBC $485 $284 $525 $475 $346 BMO RJ $375 Scotia $470 $319 $520 $455 RBC BMO $395 RJ $32
Slide 51: Modeling EBITDA
Modeling EBITDA Estimated Earnings Sensitivity to Key Variables (Based on 2024 annual shipment volumes - $ millions) Factor Variation Change in pre-tax earnings1 Lumber price $10 (per Mfbm) 54 NA OSB price $10 (per Msf) 57 Europe OSB price £10 (per Msf) 14 U.S. / CAD $ exchange rate2 $0.01 (per $ CA
Slide 52: Illustrative Variable Production Costs for North American Lumber Industry
Illustrative Variable Production Costs for North American Lumber Industry $USD/MBF Variable Lumber Costs (2021-2023) 400 0 B.C. Interior US West Coast Quebec Ontario US South Net Delivered Wood Costs Manufacturing Costs Source: FEA, West Fraser analysis. Lumber Manufacturing Costs (2021-2023) 100% M
Slide 53: Illustrative Variable Production Costs for North American OSB Industry
Illustrative Variable Production Costs for North American OSB Industry Variable OSB Costs (2021-2023) $USD/MSF 3/8” 200 0 US North US South Western Canada Eastern Canada Net Delivered Wood Costs Manufacturing Costs Source: FEA, West Fraser analysis. OSB Manufacturing Costs (2021-2023) 100% Misc. 21%
Slide 54: 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 55: External Information
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 or derived from st