Slide 1: Investor Presentation May 2025
INVESTOR PRESENTATION MAY 2025
Slide 2: Forward-Looking Information & Non-GAAP Measures
FORWARD-LOOKING INFORMATION & NON-GAAP MEASURES Forward-Looking Information: This presentation contains forward-looking information about Interfor Corporation’s (“Interfor” or the “Company”) business outlook, objectives, plans, strategic priorities and other information that is not historical fact.
Slide 3: Interfor Investment Highlights
INTERFOR INVESTMENT HIGHLIGHTS Pure-play North American lumber producer of scale • Top three softwood lumber producer in North America, with 28 strategically located facilities • High exposure to US South and Eastern Canada with attractive log costs Compelling lumber market fundamentals • Diversifie
Slide 4: Investor Value Proposition
INVESTOR VALUE PROPOSITION Attractive Earnings Through the Cycle Consistently Growing Volumes $450 ADJUSTED EBITDA MARGIN PER UNIT ($C/MBF) 4,500 LUMBER PRODUCTION VOLUMES (MMBF) $400 4,000 $350 3,500 $300 3,000 $250 2,500 $200 2,000 $150 10-year avg = $130/MBF 1,500 $100 1,000 $50 500 $- - Increase
Slide 5: Pure-Play North American Lumber Producer
PURE-PLAY NORTH AMERICAN LUMBER PRODUCER
Slide 6: Pure-Play Lumber Producer
PURE-PLAY LUMBER PRODUCER Interfor is a North American focused, pure-play softwood lumber producer INTERFOR 2024 REVENUES BY SOURCE Softwood Lumber (81%) Other Wood Products (5%) Dimensional lumber primarily for Primarily I-joists - engineered wood structural members framing/structural applications,
Slide 7: Lumber Species & Markets
LUMBER SPECIES & MARKETS Diverse lumber species mix; high leverage to key US market INTERFOR INTERFOR LUMBER SALES BY SPECIES (1) LUMBER SALES BY MARKET (1) USA 84% Spruce-Pine-Fir (SPF) 29% Southern Hem-Fir Yellow Pine 6% 45% Doug Fir/ Japan Larch <1% 19% Cedar Other Canada 1% <2% China/Tw/HK 13% 1
Slide 8: Lumber Industry Landscape
LUMBER INDUSTRY LANDSCAPE Interfor is a top three producer in North America and the only publicly traded pure-play lumber producer of scale NORTH AMERICAN LUMBER PRODUCTION BY COMPANY (BBF) (1) 6.0 5.0 4.0 3.0 2.0 1.0 - Source: FEA’s Top Producer Survey / Company Reports. (1) Reflects last twelve mo
Slide 9: Interfor Operations
INTERFOR OPERATIONS EASTERN CANADA 1,080 MMBF (23%) BC INTERIOR • 4 stud mills; 3 dimension mills; 1 I-Joist 750 MMBF (16%) facility; woodlands management division • 3 dimension mills; 1 remanufacturing • Spruce – Pine – Fir (SPF) facility (Sumas, WA) • Efficient, well-run, well-maintained • Douglas
Slide 10: Compelling Lumber Market Fundamentals
COMPELLING LUMBER MARKET FUNDAMENTALS
Slide 11: Lumber Prices
LUMBER PRICES Recent pricing increasing from multi-year lows, driven in large part by supply- side adjustments in 2024 NORTH AMERICAN BENCHMARK LUMBER PRICES (US$/MBF) $600 Southern Yellow Pine US Northwest Hem-Fir $550 Western SPF Eastern SPF $500 $450 $400 $350 $300 Source: Random Lengths (include
Slide 12: Lumber Demand
LUMBER DEMAND Diversified end-use demand drivers across R&R, industrial and housing NORTH AMERICAN LUMBER DEMAND KEY DEMAND DRIVERS BY END-USE Repair & Remodel (R&R) Repair & • Housing stock > 40 years old on 38% Remodel average • Household balance sheets in good shape New Home • Strong fundamentals
Slide 13: Lumber Demand: Key Drivers
LUMBER DEMAND: KEY DRIVERS Underlying housing fundamentals remain favourable, despite near-term volatility US HOUSING STARTS AGE OF US HOUSING STOCK (MILLIONS SEASONALLY ADJUSTED) (MEDIAN AGE IN YEARS) 1.9 45 Single-Family Multi-Family 1.8 1.7 43 50-year 1.6 avg = 1.5 1.45 MM 41 1.4 1.3 39 1.2 1.1 3
Slide 14: Lumber Supply
LUMBER SUPPLY Measured supply growth in the US South, offset by declines in other regions US SOUTH Measured growth (five-year CAGR of only 3%), NORTH AMERICAN LUMBER PRODUCTION (BBF) limited by labour availability and long equipment lead times. 2020 2021 2022 2023 2024 US WEST & CANADA (NON-BC) US -
Slide 15: Lumber Supply: BC Interior
LUMBER SUPPLY: BC INTERIOR Over 47% of BC industry capacity curtailed since 2018 due to declining log supply. However, Interfor well-positioned in southern BC. Mountain Pine Beetle BC INTERIOR ALLOWABLE Cumulative Percentage 70.0 ANNUAL CUT (MM M3) of Merchantable Forest Volume Killed Since 23% redu
Slide 16: Lumber Supply: European Imports
LUMBER SUPPLY: EUROPEAN IMPORTS European imports surged in late 2022/early 2023, but have since declined steadily US LUMBER IMPORTS FROM DAMAGED TIMBER IN CENTRAL 140 EUROPE – TRAILING THREE EUROPE (MM M3) 120 600 MONTH AVERAGE (‘000 M3) 100 Amount of damaged timber peaked in 2020 80 500 60 40 400 2
Slide 17: Softwood Lumber Dispute & Tariffs
SOFTWOOD LUMBER DISPUTE & TARIFFS Limited exposure to duties or tariffs with ~60% of lumber capacity based in the US U.S. COUNTERVAILING & INTERFOR SOFTWOOD LUMBER ANTI-DUMPING CASH DEPOSIT RATES DUTIES HIGHLIGHTS APPLICABLE TO INTERFOR (1) 35% 34.45% US$607 MM Duties on Deposit 30% Duties paid by I
Slide 18: Top-Tier Margins & Returns on Capital
TOP-TIER MARGINS & RETURNS ON CAPITAL
Slide 19: Top Quartile Operating Margins
TOP QUARTILE OPERATING MARGINS Focus on operational excellence reflected in superior margin performance LUMBER SEGMENT AVG. ADJ. EBITDA MARGINS – 2020 TO 2024 (C$/MBF) (1)(2) $200 $150 $100 $50 $- Peer #1 Interfor Peer #2 Peer #3 (1) Average of 2020-2024 (2) Peers include Canfor North America, Weyer
Slide 20: Interfor Regional Operating Margins
INTERFOR REGIONAL OPERATING MARGINS Consistent margins across regions over time, but achieved via different routes INTERFOR CASH MARGIN (C$/MBF) (1) Realized Net Selling Price (4) Net Log Costs Conversion Costs MARGIN (2) (3) BC Interior US Northwest US South Eastern Canada (1) Average of 2016-2024
Slide 21: Focus on Return on Capital
FOCUS ON RETURN ON CAPITAL Improvement in relative performance vs. peers in recent years; driven by disciplined and balanced capital deployment EBIT RETURN ON CAPITAL EMPLOYED (%) (1) 25% 20% 15% 10% 5% 0% 2010-2019 2020-2024 2010-2019 2020-2024 2010-2019 2020-2024 Peer #1 Interfor Peer #2 (1) Based
Slide 22: Growth and Diversification Strategy
GROWTH AND DIVERSIFICATION STRATEGY
Slide 23: Growth & Diversification
GROWTH & DIVERSIFICATION Long-standing strategy of growth and geographic lumber diversification (1) (2) 2001 2012 2021 2025 16% 19% 17% 4% 39% 42% 50% 57% 23% 83% 20% 19% 12% 0.8 BBF 1.7 BBF 3.9 BBF 4.7 BBF BC Interior US Northwest Eastern Canada BC Coast US Southeast (1) Charts reflect production c
Slide 24: Internal Growth: Multi-Year Capex Plan
INTERNAL GROWTH: MULTI-YEAR CAPEX PLAN Mill rebuilds, machine center upgrades, debottlenecking & optimization projects Molalla, Oregon Eatonton, Georgia Continuous Kilns Thomaston, Georgia Adams Lake, British Columbia 24
Slide 25: Internal Growth: Capex Spending Profile
INTERNAL GROWTH: CAPEX SPENDING PROFILE Strategic investments resulting in a well-capitalized, high-margin sawmill portfolio HISTORICAL CAPITAL EXPENDITURES ($MM) $320 Capital Expenditures - Discretionary $300 Capital Expenditures - Maintenance (Includes Woodlands Roads) $280 Depreciation of Plant a
Slide 26: Balanced Capital Allocation & Optimized Capital Structure
BALANCED CAPITAL ALLOCATION & OPTIMIZED CAPITAL STRUCTURE
Slide 27: Balanced Capital Allocation
BALANCED CAPITAL ALLOCATION Capital deployed in a disciplined and balanced manner to maximize returns CAPITAL DEPLOYMENT SUMMARY – 2020 TO 2025 ($MM) (1) $187 ~C$2.4 B Reinvested $661 $177 $3,000 $66 $244 $2,500 $2,230 $884 $2,000 $1,500 Cash Inflows $1,000 Cash Outflows ~C$636 MM Returned $500 $1,5
Slide 28: Optimized & Low-Cost Capital Structure
OPTIMIZED & LOW-COST CAPITAL STRUCTURE Efficient, flexible and low-cost capital structure. Combination of long-term, laddered maturity, fixed-rate debt and flexible, variable-rate revolving facility CAPITAL STRUCTURE SENIOR SECURED NOTES AS OF MARCH 31, 2025 ($MM) MATURITY SCHEDULE AS OF MARCH 31, 2
Slide 29: Conservative Leverage Maintained
CONSERVATIVE LEVERAGE MAINTAINED Conservative leverage maintained to provide flexibility through all markets. Near-term leverage expected to benefit from non-operating cash flows, including net proceeds from disposition of Coastal BC business HISTORICAL NET DEBT – TO – INVESTED CAPITAL RATIO (%) (1)
Slide 30: Positive ESG & Carbon Story
POSITIVE ESG & CARBON STORY
Slide 31: Building Value Sustainably
BUILDING VALUE SUSTAINABLY Respecting Nature. Building Sustainably. A Sustainability Strategy to Invest in our Future. Long-standing strategy of Commitment to investing in Dedicated ESG leader and purposeful growth and our people, operations and renewed sustainability geographic lumber sustainable f
Slide 32: Contact Information & Resources
CONTACT INFORMATION & RESOURCES
Slide 33: Analyst Coverage
ANALYST COVERAGE BMO CAPITAL MARKETS Ketan Mamtora (212) 883-5102 ketan.mamtora@research.bmo.com CIBC CAPITAL MARKETS Hamir Patel (604) 331-3047 hamir.patel@cibc.com EQUITY RESEARCH John Cooney (604) 886-5741 john.cooney@era-research.com ASSOCIATES RAYMOND JAMES Daryl Swetlishoff (604) 659-8246 dary
Slide 34: Contacts & Resources
CONTACTS & RESOURCES RICK POZZEBON MIKE MACKAY EVP & Chief Financial Officer VP, Corporate Development & Treasury 604-689-6804 604-689-6846 richard.pozzebon@interfor.com mike.mackay@interfor.com BRYAN FAST ADDITIONAL RESOURCES Director, Corporate Development & Investor Relations 604-451-2823 bryan.f