Investor Presentaiton
Specialty Product Focus
ā
Approximately 77% of lumber
revenue is generated from
non-commodity products
Significant price premium to
commodity lumber
More stable margins through
the cycle vs. commodity peers
Product / market diversity and
global exposure provide
opportunities to maximize
margin
Cedar, niche and commodity
grades will benefit from U.S.
housing recovery and global
demand
Relative Lumber Price Change Since Q1-2015
120%
100%
80%
60%
40%
20%
0%
-20%
WFP
WFP Strike
Impacted (3)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015
2016
WFP Average Lumber Price
2017
2018
2019
Commodity Lumber Price (1)
Quarterly Lumber EBITDA Margins Comparison
30%
20%
10%
0%
-10%
-20%
-30%
2020
WFP Strike
Impacted (3)
WFP
WFP
2019
2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015
2016
2017
2018
(2)
Peer Group Range
Western Forest Products
(1) KD Western SPF 2x4, #2&Btr; converted from US$ to C$
(2) High and low EBITDA margin range of West Fraser, Canfor and Conifex (up to Q3-19) lumber segments and consolidated results of Interfor
(3) Q3-19, Q4-19 and Q1-20 are not comparable for Western due to the strike
Focus on specialty products delivered 39 quarters of positive EBITDA over 10 years
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