Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting May 17, 2011
Slide 2: 2010 in Review
2010 in Review Business conditions better than 2009 North American lumber consumption up 6%; Chinese market continues to grow Lumber prices up 28% year-over-year Production up 70% to 1.1 billion board feet Net loss $3.1 million or $0.07 per share; EBITDA $48.0 million Cash flow $32.0 mil
Slide 3: 2010 in Review
2010 in Review Significant progress on “strategic initiatives” in 2010 Strong results at Adams Lake Castlegar sawmill re-commissioned Sales to China almost quadrupled Weyerhaeuser timber purchase completed Credit agreements extended Achievements position Interfor for long-term success
Slide 4: Identities Today
Today INTERFOR 5 /PTERESS ERFOR arama GPs ACORN DIVISION ( L u mA B £ R CEDARPRIME
Slide 5: New Identity
New Identity
Slide 6: Q1 2011 in Review
Q1 2011 in Review Market conditions have been affected by weather, on- going issues in U.S. housing and logistics issues High log costs in PNW, weak markets for Cedar and rising C$ add to challenges Interfor lost $1.7 million or $0.04 per share; EBITDA was $12.7 million Net debt was flat at
Slide 7: Outlook
Outlook Lumber prices have fallen US$65 – $70 since March peak Logistics issues continue to limit offshore shipments North American market is oversupplied C$ remains strong Matching production to demand is key Interfor will maintain strict controls on inventory and focus on strategic opp
Slide 8: Equity Issue
Equity Issue Agreed to “bought deal” equity issue on March 17th Issued 8.2 million shares at $7 for gross proceeds of $57.6 million Reduces net debt to invested capital to <20% Provides flexibility to proceed with high return capital and other strategic opportunities 7
Slide 9: Thank you for your support
Closing Thank you for your support 8