Acadian Timber Corp. · TSX:ADN
Acadian Timber — Acadian Timber Income Fund — CIBC Investor Conference (February 2006)
19 slides from Acadian Timber's conference presentation, Feb 15, 2006
Slide 1: Acadian Timber Income Fund
Acadian Timber Income Fund CIBC Investor Conference Fairmont Waterfront February 15 2006
Slide 2: Acadian Profile
Acadian Profile Leading supplier of roundwood in Eastern Canada and the Northeastern U.S. – Large landowner with 1.1 million acres of freehold timberlands – 2nd largest timberland operator in the region Acadian engages in: – Forest Management – Harvesting – Marketing – Sales Customers include
Slide 3: Acadian Profile: Investment Highlights
Acadian Profile Investment Highlights 1 Unique Renewable Resource Providing Long Term Cash Flow 2 Large Landowner with High Quality Timberland Asset Base 3 Cash Flow Stability Supported by Sustainable Harvesting Practices 4 Strong Brookfield Sponsorship 5 Opportunities for Growth through Acquisition
Slide 4: New Brunswick Assets
Acadian Profile New Brunswick Assets Forest Nursery Edmundston Plaster Rock Juniper NB Timberlands Land Area 765,000 acres New Brunswick Productive Forested Areas 92% Merchantable Forest Inventory 17.3 million m3 Species Mix of Merchantable 51% softwood Forest Inventory 49% hardwood Owned Timberland
Slide 5: Maine Assets
Acadian Profile Maine Assets Maine Timberlands Madawaska Land Area 311,000 acres Ashland Productive Forested Areas 92% Masardis Merchantable Forest Inventory 10.4 million m3 Species Mix of Merchantable 70% softwood Millinocket Forest Inventory 30% hardwood East Long Run Sustainable Yield (LRSY) 277,
Slide 6: Acadian Historical Pricing
Acadian Profile Acadian Historical Pricing(1) Spruce / Fir Sawlogs Hardwood Pulpwood $80 $70 $60 ($ per m3) $50 $40 $30 $20 $10 $0 (2) 2001 2002 2003 2004 2005 YTD (1) Pricing for Maine has been converted using a conversion rate based on the average exchange rates. (2) Pricing for Maine in 2003 refl
Slide 7: Unique Assets
Investment Highlights Unique Assets Renewable resource providing long term cash flow Scarce asset class – Only 7% of Canada’s timberlands are freehold – Trend of increasing conservation Demand driven by population and economic growth Timber appreciates in volume and value over time CIBC INVE
Slide 8: Large Scale Highly Flexible Cost Structure
Investment Highlights Large Scale Highly Flexible Cost Structure 2nd largest timberlands operator in New Brunswick and Maine Majority of Acadian’s costs are variable Minimal ongoing capital requirements Significant flexibility for expenditures on silviculture CIBC INVESTOR PRESENTATION 7
Slide 9: Diversified End-use Markets for All Products
Investment Highlights Diversified End-use Markets for All Products Maximizing the value of high quality harvested trees drives profitability Acadian excels in finding and developing markets for each of its products – Over 110 customer relationships Sales from the Acadian Timberlands (1)(2) % of
Slide 10: Well Managed Sustainable Asset Base
Investment Highlights Well Managed Sustainable Asset Base Historical silvicultural investments have increased the value of the regenerating inventory High quality timber inventory base Acadian Timberlands Age Class Distribution 450 Softwood Dominated 400 Hardwood Dominated 350 Acres (000's) 300
Slide 11: Strong Management and Sponsorship
Investment Highlights Strong Management and Sponsorship The top 5 operational executives each have over 20 years of Acadian Ownership timberlands management experience 27% Brookfield(1) Proven track record of completing strategic acquisitions of timberlands Significant retained interests Bro
Slide 12: Opportunities for Growth
Investment Highlights Opportunities for Growth Paper & forest products companies looking to surface value from the timberlands and redeploy capital in core operations Sales / exchanges of higher value land And other opportunities, driven by Acadian’s: – Access to capital – Strong reputation as
Slide 13: Financial Highlights: Pro Forma Adjusted EBITDA
Financial Highlights Pro Forma Adjusted EBITDA 25 $21.4 $20.7 20 $15.2 ($ in millions) 15 10 5 0 2004 LTM 9 Months Ended Oct 1, 2005 CIBC INVESTOR PRESENTATION 12
Slide 14: Stable Margins
Financial Highlights Stable Margins Adjusted EBITDA Margin (1) NB Timberlands Maine Timberlands Proforma 40% 35% 30% 25% 20% 15% 10% 5% 0% 2002 2003 2004 LTM 9 Months Ended Oct 1, 2005 (1) Maine 2003 EBITDA margin is for May –Dec. period only CIBC INVESTOR PRESENTATION 13
Slide 15: Well Diversified Revenue Base
Financial Highlights Well Diversified Revenue Base Acadian Timberland’s Pro Forma Sales to Fraser Papers Net Sales by Customer(1) are diversified across a 3% number of facilities 2% KPC LLC Crown Lands Services (2) Over 110 other 61% Other customers: Customers – Largest customer 34% represents 6
Slide 16: Leverage
Financial Highlights Leverage Acadian TimberWest Debt/EBITDA (1) 3.8x 3.4x EBITDA/Interest (1) 5.2x 4.5x (1) EBITDA for Acadian is based on Pro forma Adjusted EBITDA before adjusting for public company costs and non-continuing business arrangements for the 12 month period ended October 1, 2005 Aca
Slide 17: Summary of Distributable Cash
Financial Highlights Summary of Distributable Cash ($ in thousands, except per unit data) Twelve months ended October 1, 2005 Pro forma Adjusted EBITDA $ 20,707 Interest expense 4,018 Additional general, administrative and other costs 500 Taxes 30 Silviculture expenditures 942 Other capital expendit
Slide 18: In Conclusion: Positive Investment Dynamics
In Conclusion Positive Investment Dynamics 1 Unique Renewable Resource Providing Long Term Cash Flow 2 Large Landowner with High Quality Timberland Asset Base 3 Cash Flow Stability Supported by Sustainable Harvesting Practices 4 Strong Brookfield Sponsorship 5 Opportunities for Growth through Acquis
Slide 19: Acadian Timber Income Fund
Acadian Timber Income Fund CIBC Investor Conference Fairmont Waterfront February 15 2006
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