West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Shareholder Meeting (April 2022)
28 slides from West Fraser Timber's shareholder meeting presentation, April 2022
Slide 1: Annual General Meeting
Annual General Meeting April 2022
Slide 2: Financial Information and Forward Looking Statements
Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our 2021 Annual Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and is discussed in our Managements’ Discussio
Slide 3: 2021 In Review
2021 In Review
Slide 4: 2021 Achievements
2021 Achievements Record financial results in the face of significant macro challenges • $4.57 billion adjusted EBITDA* and 61% return on capital employed (ROCE) • Exited the year with $1.0 billion of net cash • Repurchased $1.3 billion of WFG shares Continued growth through acquisition and investme
Slide 5: Key Sustainability Achievements
Key Sustainability Achievements Achieved 2 billion trees Recognized with a SFI Leadership in Conservation Award, planted milestone in 2021 in collaboration with the Nature Conservancy of Canada Stored 17.5 tonnes of carbon (C02e) in 2020 production Certified 100% responsible fibre sourcing for lumbe
Slide 6: Committing to the SBTi Process
Committing to the SBTi Process Joining the SBTi signals our commitment to global climate action, aligning with the Paris Agreement goals, to materially reduce GHGs, across all our operations by 2030 On Feb 15, 2022, West Fraser commitment to science- based targets and the Science Based Targets Initi
Slide 7: Our People
Our People 8% Defined an Indigenous Peoples Policy of West Fraser’s Canadian employees Committed to Progressive Aboriginal Relations Certification self-identify as Indigenous 22% from the Canadian Council for Aboriginal Businesses Diversity and Inclusion of all West Fraser employees self-identify Di
Slide 8: Why Investors Should Own West Fraser Shares
Why Investors Should Own West Fraser Shares
Slide 9: Reasons to Invest in West Fraser Timber Co.
Reasons to Invest in West Fraser Timber Co. One of the world’s largest producers of sustainable wood-based building products Offers financial Serves markets Has a track record Has the scope, Is positioned to Has an attractive resilience through with strong of disciplined and scale, and benefit from
Slide 10: Resilience from Product and Geographic Diversity
Resilience from Product and Geographic Diversity
Slide 11: Product & Geographic Diversification
Product & Geographic Diversification Lumber North America EWP Pulp, Paper & Energy UK and Europe EWP 34 locations 19 locations 5 locations 4 locations OSB: 7,360 MMsf 3/8” NBSK: 520 Mtonnes OSB 1,505 MMsf 3/8” SPF 3.4 Bfbm Plywood: 860 MMsf 3/8” BCTMP: 690 Mtonnes Particleboard 565 MMsf 3/8” SYP 3.6
Slide 12: Operating Footprint on Two Continents
Operating Footprint on Two Continents 12
Slide 13: Serving Markets with Attractive Fundamentals
Serving Markets with Attractive Fundamentals
Slide 14: U.S. Housing Start Estimates
U.S. Housing Start Estimates (Thousands) 1,800 1,700 1,601 1,600 US Housing Starts (‘000s) 1,500 1,400 1,380 1,300 1,290 1,250 1,203 1,200 1,174 1,112 1,100 1,000 2015 2016 2017 2018 2019 2020 2021 2022F 2023F Actual High/Low Forecasts Source: U.S. Census Bureau, industry analysts Industry analysts
Slide 15: U.S. Leading Indicator of Remodeling Activity
U.S. Leading Indicator of Remodeling Activity Homeowner Improvements & Repairs Four-Quarter Moving Four-Quarter Moving Totals Predicting further demand Rate of Change (%) Billions ($USD) strengthening for R&R activity in 2022 450 427 432 20 Four-Quarter Moving Rate of Change (%) 404 400 Homeowner Im
Slide 16: Disciplined and Balanced Allocator of Capital
Disciplined and Balanced Allocator of Capital
Slide 17: Capital Allocation Priorities
Capital Allocation Priorities • Replace end-of-life assets • Maintain investment-grade rating • Maintain low-cost position • Maintain cash buffer to aid the • Strategically enhance pursuit of opportunistic M&A and product mix, productivity Reinvest Maintain larger-scale strategic growth and capacity
Slide 18: Scope, Scale and Expertise to Unlock Growth
Scope, Scale and Expertise to Unlock Growth
Slide 19: West Fraser's Growth Strategy
West Fraser’s Growth Strategy 19
Slide 20: Positioned to Benefit from Strong ESG Fundamentals
Positioned to Benefit from Strong ESG Fundamentals
Slide 21: Circular Economy – Responsible, Resourceful and Climate-Smart
Circular Economy – Responsible, Resourceful and Climate-Smart Carbon Sequestration. Sustainable Growing Forests. Harvest. Forever. Reuse and Waste Not. Recycle. Climate-Smart 74% Renewable Construction. Energy. We use it all. 21
Slide 22: Attractive Record of Creating Shareholder Value
Attractive Record of Creating Shareholder Value
Slide 23: Performance vs. Peers and Relevant Indices
Performance vs. Peers and Relevant Indices Enterprise Value (US$ billions) $10 +314% $8 +181% $6 $4 +43% $2 +395% $0 2005 YE 2021 YE West Fraser Peer 1 Peer 2 Peer 3 Annualized Total Shareholder Return (US$, dividends reinvested) 12% 11.0% Jan-01-06* to Mar-31-22 10.5% 10.1% 10% 8% 6.6% 6.2% 6% 5.1%
Slide 24: Outlook
Outlook
Slide 25: Ability to Deploy Technology Will Create Competitive Advantage
Ability to Deploy Technology Will Create Competitive Advantage Utilizing Sensor Technology to Improve Safety Expanding Robotics in Our Operations Augmented Reality / Remote Technical Support Deploying High Tech Equipment 2022 expected capital expenditures* of $500 - $600 million 25 * Expected capita
Slide 26: Q&A
Q&A
Slide 27: West Fraser Timber Co. Ltd.
West Fraser Timber Co. Ltd. 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
Slide 28: External Information, Currency and Terminology
External Information: Where this presentation quotes any information or statistics from any external source, it should not be interpreted that West Fraser has adopted or endorsed such information or statistics as being accurate. Some of the information presented herein is based on or derived from st
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