Slide 1: Quarter 4, 2008 Financial Performance Overview
C O R P O R A T I O N C A N F O R Quarter 4, 2008 Financial Performance Overview Presented by: Jim Shepard, President and CEO Tom Sitar, Vice President, Finance & CFO Q4, 2008 PAGE 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements The presentation and answers to questions today contain forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements express
Slide 3: Q4 2008 Review
Q4 2008 Review Economic Climate Significantly Impacts Q4 Results U.S. housing starts fall to lowest level on record (Dec. 08 – 550,000 units SAAR) Demand and prices down sharply across all products Q4 Net Loss of $230 million ($1.61 per share) Non-cash one-time charges of $186 million ($1.
Slide 4: Q4 2008 Review: One-Time Items Impacting Earnings
Q4 2008 Review: One-Time Items Impacting Earnings (millions of dollars, except for per share amounts) Q4 2008 Q3 2008 $ $/Share $ $/Share Net loss, as reported $ (230) (1.61) $ (94) $ (0.66) Non-operating / unusual items (after-tax, net of non-controlling interests) Asset impairments (note 1) $ 74 $
Slide 5: Sharp Deterioration in US$ Lumber Prices and U.S. Housing Starts
Sharp Deterioration in US$ Lumber Prices and U.S. Housing Starts U.S. Housing Starts SAAR Lumber Price compared to U.S. Housing Starts (Thousand Units) Western SPF #2&Btr US$/Mfbm 2,500 $500 2,300 $450 2,100 $400 1,900 $350 1,700 $300 1,500 $250 1,300 $200 1,100 $150 900 $100 700 $50 U.S. Housing St
Slide 6: Sales and EBITDA Summary
Sales and EBITDA Summary Q4 Q3 (millions of dollars, except where otherwise stated) Variance 2008 2008 Gross Sales $ 588.7 $ 668.0 $ (79.3) EBITDA by Segment: Lumber $ (24.1) $ 15.3 $ (39.4) Panels $ (10.9) $ (0.1) $ (10.8) Pulp & Paper $ 8.9 $ 45.1 $ (36.2) Corporate $ (4.1) $ (5.2) $ 1.1 Total EBI
Slide 7: Lumber: Q4 2008 vs. Q3 2008
Lumber: Q4 2008 vs. Q3 2008 Q4 Q3 Variance (millions of dollars unless otherwise noted) 2008 2008 Sales $ 363.9 $ 378.8 $ (14.9) EBITDA $ (24.1) $ 15.3 $ (39.4) Restructuring, mill closure and severance costs $ 3.7 $ 3.1 $ 0.6 Total inventory write-downs $ 15.5 $ 6.6 $ 8.9 EBITDA, adjusted for above
Slide 8: Panels: Q4 2008 vs. Q3 2008
Panels: Q4 2008 vs. Q3 2008 Q4 Q3 Variance (millions of dollars unless otherwise noted) 2008 2008 Sales $ 20.5 $ 36.0 $ (15.5) EBITDA $ (10.9) $ (0.1) $ (10.8) Restructuring, mill closure and severance costs $ 6.7 $ 2.3 $ 4.4 Total inventory write-downs (recoveries) $ 2.1 $ (3.1) $ 5.2 EBITDA, adjus
Slide 9: Pulp & Paper: Q4 2008 vs. Q3 2008
Pulp & Paper: Q4 2008 vs. Q3 2008 Q4 Q3 Variance (millions of dollars unless otherwise noted) 2008 2008 Sales $ 204.3 $ 253.2 $ (48.9) EBITDA $ 8.9 $ 45.1 $ (36.2) Average pulp list price delivered to U.S. - in US$ $ 787 $ 880 $ (93) Average pulp list price delivered to U.S. - in CDN$ $ 954 $ 917 $