Slide 1: Canfor Corporation
Canfor Corporation Don Kayne, President and Chief Executive Officer
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 expressed
Slide 3: Who We Are
Who We Are • Largest producer of Canadian dimension lumber • 50.2% owner of Canfor Pulp Limited Partnership • Builder of market demand in the world’s fastest-growing economies • A company with a strong reputation for quality, customer service and excellence in logistics support • Supplier of product
Slide 4: Key Facts
Assets ($2.5 billion) 2011 9 months Revenues ($1.8 billion) Lumber Lumber Pulp Pulp Panels and Other Panels and Other Key Facts • 17 sawmills in Market Capitalization (billions $) Canada and the US 3.0 • Controlling interest in 2.5 3 NBSK pulp mills 2.0 through Canfor Pulp 1.5 Limited Partnership •
Slide 5: Green Fibre: Canfor's Fibre Supply
Green Fibre Canfor’s Fibre Customer Fibre • Strong, sustainable fibre supply Strategy Supply • Fibre base supports our customer focused strategy • Well located mills in regions minimally impacted by mountain pine beetle • Acquisition of Tembec tenure will further strengthen fibre security (75% of al
Slide 6: Strategic Sawmill Capital Focus on Performance
FORT ST JOHN ($43M) Focus on Performance CHETWYND ($23M) GRANDE PRAIRIE ($37M) • $300 million spending program to improve modernization and efficiency POLAR ($21M) • Driving to top quartile margin performance through: PG SAWMILL ($25M) • Productivity and Strategic Sawmill operational excellence • Ex
Slide 7: Customer Regions: North America
Customer Regions North America • The United States remains our largest market - 45% of total SPF sales in 2011 • Canada is a strong and steady market, taking almost 20% of SPF sales • We are committed to growth with our key customers • Our focus is on the retail business – first to rebound when the
Slide 8: Customer Regions: China
Customer Regions China 1200 • Canfor aggressively building demand for Canfor Shipments to China (Mfbm) our products – China is an excellent 1000 example of our market development 800 work • Canfor was the first company into China; 600 in a decade, it has grown from obscurity into our largest offshor
Slide 9: Looking Forward in China
Chinese Wood Consumption 400 Demand 350 Supply Looking forward in China 300 Shortfall (imports) 250 millions m3 200 • Canada has built strong, sustainable 150 recognition of the merits of wood frame 100 construction in China 50 • Latest Chinese government White Paper 0 2010 2015 solidifies governmen
Slide 10: Customer Regions: Japan
Customer Regions Japan • Canfor has had a strong relationship with Japan for more than 30 years Market Breakdown • Mature, high value market; strong cultural ties to 3% wood construction • Widespread recognition of environmental, 2x4 House 21% Construction health, seismic benefits of using wood Post
Slide 11: Conclusion
Conclusion • We see moderately improving demand signals in existing and emerging markets • Wood products are increasingly embraced as an environmentally preferable choice, and the need for sustainable housing continues to grow as global population expands • Canfor is well positioned to meet this dem
Slide 12: Investor Contact
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 and shall not constitute an
Slide 13: Capitalization and Liquidity
Capitalization and Liquidity Long Term Debt $ Millions Liquidity $ Millions Senior Unsecured Notes 6.33% 2012 50 Syndicated credit facility Oct 2013 350 Senior Unsecured Notes 5.42% 2013 75 Other credit facility Jan 2012 12 Total Debt 125 Outstanding Letters of Credit (17) Cash 70 Cash balance 70 Sh
Slide 14: Trading Liquidity
Trading Liquidity CFP WFT IFP 500,000 Average Daily Trading Volume (Shares) 400,000 300,000 Major Shareholders* 200,000 The Pattison Group 38% 100,000 0 Mackenzie Cundill 14% 2007 2008 2009 2010 2011 Jarislowsky Fraser 11% *Information as per public filings CFP WFT IFP 6,000,000 Average Daily Tradin