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INVESTOR PRESENTATION MAY 2025
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2 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. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information in this presentation, include but are not limited to, statements regarding production capacity, facility restart plans and ramp-up timelines, pro-forma capacity, expected earnings and returns, pro-forma debt ratios, liquidity, borrowing capacity, regulatory approvals and other relevant factors. Readers are cautioned that actual results may vary from the forward-looking information in this presentation, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this presentation are described in Interfor’s annual Management’s Discussion & Analysis (“MD&A”) under the heading “Risks and Uncertainties”, which is available on www.interfor.com and under Interfor’s profile on www.sedarplus.ca. Material factors and assumptions used to develop the forward- looking information in this report include the timing and value of proceeds received from the disposition of B.C. Coast forest tenures; regulatory approvals, charges related to the exit of Quebec operations; impact of tariffs on Canadian lumber imports to the U.S.; availability and cost of logs; competition; currency exchange sensitivity; environment; government regulation; health and safety; Indigenous reconciliation; information technology and cyber security; labour availability; logistics availability and cost; natural and man-made disasters and climate change; price volatility; residual fibre revenue; softwood lumber trade; and tax exposures. Unless otherwise indicated, the forward-looking statements in this presentation are based on the Company’s expectations at the date of this presentation. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law. The Company's independent auditor, KPMG LLP, has not audited, reviewed or performed any procedures with respect to any interim financial results and other data included in this presentation, and accordingly does not express an opinion or any other form of assurance with respect thereto. Non-GAAP Measures: This presentation makes reference to certain non-GAAP measures, such as EBITDA, Adjusted EBITDA and Net debt to invested capital, which are used by the Company and certain investors to evaluate operating performance and financial position. These non- GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Definitions and reconciliations of terms can be found in Interfor’s annual and quarterly MD&A which are available on www.interfor.com and under Interfor’sprofile on www.sedarplus.ca. Currency: All financial references in this presentation are expressed in Canadian dollars, unless otherwise noted.
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3 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 Top quartile operating margins and returns on capital • Top quartile EBITDA margins and returns on capital employed • Well capitalized, high-margin portfolio of sawmills Compelling lumber market fundamentals • Diversified demand across end-use segments, including housing and repair & remodel • Supply growth constrained by availability of fibre, labour and equipment lead times Growth and diversification focused strategy • Long-standing strategy of growth; 10-year lumber production volume CAGR of 6% • Acquisitions since 2021 have increased production capacity by ~57% Positive ESG and carbon story • Sustainable forest management and harvesting practices • Lumber is a climate-friendly building product with opportunity to displace concrete/steel Balanced capital allocation and optimized capital structure • Disciplined approach across growth capex, M&A and returns to shareholders • Well structured balance sheet and ~$306 million of liquidity as of March 31, 2025
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4 ‐ 10 20 30 40 50 60 70 80 90 ‐ 10 20 30 40 50 60 70 80 90 Shares Outstanding (MM) Production Per Share (Bf/share) $‐ $50 $100 $150 $200 $250 $300 $350 $400 $450 ‐ 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 0.0 0.5 1.0 1.5 2.0 2.5 3.0 PRODUCTION PER SHARE Increased Leverage to Production Attractive Valuation Metrics INVESTOR VALUE PROPOSITION LUMBER PRODUCTION VOLUMES (MMBF)ADJUSTED EBITDA MARGIN PER UNIT ($C/MBF) 10-year avg = $130/MBF SHARE PRICE TO BOOK VALUE MULTIPLE Attractive Earnings Through the Cycle Consistently Growing Volumes (1) Market and book value prices per share as of each quarter-end, except 2025 book value as of March 31, 2025 and market price as of May 2, 2025. 10-year avg = 1.2x
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PURE-PLAY NORTH AMERICAN LUMBER PRODUCER
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6 81% 5% 5% 9% PURE-PLAY LUMBER PRODUCER INTERFOR 2024 REVENUES BY SOURCE Interfor is a North American focused, pure-play softwood lumber producer $3.0 BILLION Softwood Lumber (81%) Dimensional lumber primarily for framing/structural applications, manufactured at Interfor’s sawmill facilities Other Wood Products (5%) Primarily I-joists - engineered wood structural members manufactured by Interfor with internally-sourced lumber flanges and externally-sourced oriented strand board web Logs (5%) Logs that do not meet the criteria for processing at Interfor’s facilities, due to factors such as species (e.g. hardwood) or size Wood Chips & Other By-Products (9%) Wood chips and other products (bark, sawdust, shavings) that are produced during the lumber manufacturing process
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7 Doug Fir/ Larch 19% Hem-Fir 6% Spruce-Pine-Fir (SPF) 29% Southern Yellow Pine 45% Cedar 1% Canada 13%China/Tw/HK 1% Other <2% Japan <1% USA 84% LUMBER SPECIES & MARKETS INTERFOR LUMBER SALES BY SPECIES (1) (1) By Volume for 2025-YTD INTERFOR LUMBER SALES BY MARKET (1) Diverse lumber species mix; high leverage to key US market
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8 - 1.0 2.0 3.0 4.0 5.0 6.0 LUMBER INDUSTRY LANDSCAPE NORTH AMERICAN LUMBER PRODUCTION BY COMPANY (BBF) (1) Source: FEA’s Top Producer Survey / Company Reports. (1) Reflects last twelve months ended March 31, 2025 for Interfor, Potlatch, West Fraser and Weyerhaeuser. Reflects 2024 per FEA for all others, except Resolute and Tolko includes estimate of US production volumes and Hampton includes estimate of Canadian production volumes. Interfor is a top three producer in North America and the only publicly traded pure-play lumber producer of scale
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9 BC INTERIOR 750 MMBF (16%) • 3 dimension mills; 1 remanufacturing facility (Sumas, WA) • Douglas-Fir, Hem-Fir, SPF, Cedar • Efficient, modern, low-cost, well- capitalized US NORTHWEST 550 MMBF (12%) • 3 stud mills • Douglas-Fir, Hem-Fir • Efficient, modern, low-cost, well- capitalized US SOUTH 2,335 MMBF (50%) • 12 dimension mills; 1 stud mill • Southern Yellow Pine (SYP) • Ongoing capex investment upside d 4.7 Billion board feet of lumber production capacity, with operations in all major timber baskets INTERFOR OPERATIONS (1) US South capacity metrics include the indefinitely curtailed mills at Meldrim, GA, and Summerville, SC (330 MMBF of combined capacity). (1) (1) EASTERN CANADA 1,080 MMBF (23%) • 4 stud mills; 3 dimension mills; 1 I-Joist facility; woodlands management division • Spruce – Pine – Fir (SPF) • Efficient, well-run, well-maintained
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COMPELLING LUMBER MARKET FUNDAMENTALS
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11 $300 $350 $400 $450 $500 $550 $600 Southern Yellow Pine US Northwest Hem-Fir Western SPF Eastern SPF Source: Random Lengths (includes prices up to May 1, 2025) LUMBER PRICES NORTH AMERICAN BENCHMARK LUMBER PRICES (US$/MBF) Recent pricing increasing from multi-year lows, driven in large part by supply- side adjustments in 2024
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12 Repair & Remodel (R&R) 38% New Home Construction 32%Industrial/Commercial/Other 30% LUMBER DEMAND Source: Forest Economic Advisors (FEA) NORTH AMERICAN LUMBER DEMAND BY END-USE Diversified end-use demand drivers across R&R, industrial and housing KEY DEMAND DRIVERS • Housing stock > 40 years old on average • Household balance sheets in good shape Repair & Remodel • Strong fundamentals, despite near-term affordability headwind • More than a decade of underbuilding • Favorable demographics New Home Construction • Steady demand in-line with overall economic activity Industrial / Commercial
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13 - 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2019 2020 2021 2022 2023 2024 2025 Single-Family Multi-Family LUMBER DEMAND: KEY DRIVERS Source: US Census Bureau & Forest Economic Advisors (FEA) US HOUSING STARTS (MILLIONS SEASONALLY ADJUSTED) AGE OF US HOUSING STOCK (MEDIAN AGE IN YEARS) Underlying housing fundamentals remain favourable, despite near-term volatility 50-year avg = 1.45 MM 25 27 29 31 33 35 37 39 41 43 45
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14 20242023202220212020 22.1 22.1 22.1 20.9 20.8 US - South 13.7 13.7 14.1 14.7 14.5 US - West 1.6 1.6 1.6 1.7 1.7 US - Other 13.613.3 13.6 14.5 14.1 Canada – All Except BC 6.76.9 7.9 9.2 8.9 Canada - BC 57.157.5 59.2 61.0 60.0 Domestic Production 3.13.6 3.8 3.2 2.9 Offshore Imports (2.7)(2.7)(2.7)(3.4)(3.7)Offshore Exports 57.558.460.460.859.2Supply Available For NA Demand LUMBER SUPPLY NORTH AMERICAN LUMBER PRODUCTION (BBF) Measured supply growth in the US South, offset by declines in other regions US SOUTH Measured growth (five-year CAGR of only 3%), limited by labour availability and long equipment lead times. US WEST & CANADA (NON-BC) Relatively stable; good balance between available timber supply and manufacturing capacity. BRITISH COLUMBIA (BC) Ongoing permanent reductions due to impacts of Mountain Pine Beetle forest infestation (>46% decline in production since 2018). Source: Forest Economic Advisors LLC (FEA), Western Wood Products Association (WWPA) OFFSHORE IMPORTS Growth in European imports driven by strong North American markets, combined with temporarily low log costs in Europe due to a spruce bark beetle outbreak. Import volumes expected to continue easing going forward. OFFSHORE EXPORTS Lower exports driven by reduced demand from Asia, but has since stabilized.
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15 Adams Lake Castlegar Grand Forks LUMBER SUPPLY: BC INTERIOR Source: BC Ministry of Forests, Lands, Natural Resource Operations and Rural Development Mountain Pine Beetle Cumulative Percentage of Merchantable Forest Volume Killed Since 1999 Very High (>45%) High (31-45%) Moderate (16-30%) Low (<16%) None (0%) Over 47% of BC industry capacity curtailed since 2018 due to declining log supply. However, Interfor well-positioned in southern BC. ‐ 10.0 20.0 30.0 40.0 50.0 60.0 70.0 23% reduction from 2010 to 2023; additional 18% reduction forecast from 2024 to 2026 BC INTERIOR ALLOWABLE ANNUAL CUT (MM M3)
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16 0 100 200 300 400 500 600 0 20 40 60 80 100 120 140 2017 2018 2019 2020 2021 2022 2023 Amount of damaged timber peaked in 2020 250 270 290 310 330 350 2017 2018 2019 2020 2021 2022 2023 Softwood harvest in Europe has been above long term average in recent years due to the salvage of damaged Average: 2000-2017 LUMBER SUPPLY: EUROPEAN IMPORTS European imports surged in late 2022/early 2023, but have since declined steadily DAMAGED TIMBER IN CENTRAL EUROPE (MM M3) EUROPEAN SOFTWOOD HARVEST (MM M3) US LUMBER IMPORTS FROM EUROPE – TRAILING THREE MONTH AVERAGE (‘000M3) Source: USDA, Forest Economic Advisors (FEA)
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17 20.23% 8.99% 17.91% 8.59% 8.05% 14.40% 34.45% 0% 5% 10% 15% 20% 25% 30% 35% 2017‐20 2020 ‐21 2021 ‐22 2022 ‐23 2023 ‐24 2024 ‐25 2025 ‐26 SOFTWOOD LUMBER DISPUTE & TARIFFS (1) Reflects final duty rates announced by the US Department of Commerce (DOC) on Dec 28, 2017, Nov 24, 2020, Jan 10, 2022, Aug 4, 2022, July 27, 2023, and August 19, 2024 respectively, except for 2025-2026 which reflects preliminary duty rates announced on March 3, 2025 and April 4, 2025 that are expected to become final in H2 2025. U.S. COUNTERVAILING & ANTI-DUMPING CASH DEPOSIT RATES APPLICABLE TO INTERFOR (1) Limited exposure to duties or tariffs with ~60% of lumber capacity based in the US ~25% of Shipments Exposed to Duties Shipments into the US from Canada as a % of Interfor’s total company-wide shipments INTERFOR SOFTWOOD LUMBER DUTIES HIGHLIGHTS US$607 MM Duties on Deposit Duties paid by Interfor to the US Gov.; ~70% are off-balance sheet ~C$12/Share Potential Value After-tax basis assuming 100% refund of all duties on deposit
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TOP-TIER MARGINS & RETURNS ON CAPITAL
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19 $‐ $50 $100 $150 $200 Peer #1 Interfor Peer #2 Peer #3 TOP QUARTILE OPERATING MARGINS Focus on operational excellence reflected in superior margin performance (1) Average of 2019-2024 (2) Peers include Canfor North America, Weyerhaeuser and West Fras er; reflects lumber segments only, adjusted to reflect duties paid, non- cash write downs related to acquisitions and FX for $US companies. LUMBER SEGMENT AVG. ADJ. EBITDA MARGINS – 2019 TO 2024 (C$/MBF) (1)(2)
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20 BC Interior US Northwest US South Eastern Canada Consistent margins across regions over time, but achieved via different routes INTERFOR CASH MARGIN (C$/MBF) (1) Net Log Costs Conversion Costs Realized Net Selling Price MARGIN (1) Average of 2016-2024 (2) Eastern Canada includes historical results pre-acquisition of EACOM. (3) Does not include the acquisition of Chaleur by Interfor on November 30, 2022. (4) Realized price for Interfor (ie. after deduction of freight, duties, tariffs and discounts) (2) (3) INTERFOR REGIONAL OPERATING MARGINS (4)
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21 0% 5% 10% 15% 20% 25% Peer #1 Interfor Peer #2 2020-2024 2020-2024 2020-20242010-2019 2010-2019 2010-2019 FOCUS ON RETURN ON CAPITAL Improvement in relative performance vs. peers in recent years; driven by disciplined and balanced capital deployment (1) Based on public filings; peers include West Fraser and Canfor. EBIT RETURN ON CAPITAL EMPLOYED (%) (1)
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GROWTH AND DIVERSIFICATION STRATEGY
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23 16% 23% 12% 50% GROWTH & DIVERSIFICATION 2001 2012 17% 83% 39% 19% 42% 57% 19% 20% 4% 0.8 BBF 1.7 BBF 3.9 BBF 2021 (1) Charts reflect production capacity. (2) US South capacity metrics include the indefinitely curtailed mills at Meldrim, GA, and Summerville, SC (330 MMBF of combined capacity). Long-standing strategy of growth and geographic lumber diversification (1) 4.7 BBF BC Interior BC Coast US Northwest US Southeast Eastern Canada 2025 (2)
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24 Continuous Kilns Adams Lake, British Columbia Eatonton, GeorgiaMolalla, Oregon Thomaston, Georgia Mill rebuilds, machine center upgrades, debottlenecking & optimization projects INTERNAL GROWTH: MULTI-YEAR CAPEX PLAN
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25 HISTORICAL CAPITAL EXPENDITURES ($MM) Strategic investments resulting in a well-capitalized, high-margin sawmill portfolio INTERNAL GROWTH: CAPEX SPENDING PROFILE $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300 $320 Capital Expenditures - Discretionary Capital Expenditures - Maintenance (Includes Woodlands Roads) Depreciation of Plant and Equipment
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BALANCED CAPITAL ALLOCATION & OPTIMIZED CAPITAL STRUCTURE
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27 $2,230 $244 $661 $187 $177 $66 $884 $1,563 $505 $131 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 CAPITAL DEPLOYMENT SUMMARY – 2020 TO 2025 ($MM) (1) (1) Reflects January 1, 2020 to March 31, 2025. ~C$636 MM Returned ~C$2.4 B Reinvested Capital deployed in a disciplined and balanced manner to maximize returns BALANCED CAPITAL ALLOCATION Cash Inflows Cash Outflows
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28 $0 $20 $40 $60 $80 $100 $120 $140 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 $16 Cash $644 Debt – Senior Secured Notes $258 Debt – Revolving Term Line (1) $886 Net Debt $1,490 Book Equity $2,376Invested Capital 37%NET DEBT/INVESTED CAPITAL (%) $306 Available Liquidity (2) US$607Lumber Duties on Deposit CAPITAL STRUCTURE AS OF MARCH 31, 2025 ($MM) SENIOR SECURED NOTES MATURITY SCHEDULE AS OF MARCH 31, 2025 ($MM) Senior Secured Notes (5.6% Fixed) (1) Current amount drawn on C$600 MM facility with a term maturity of December 17, 2026. (2) Amount available under revolving term line, plus cash on hand, as at March 31, 2025.
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29 -10% 0% 10% 20% 30% 40% 50% 2008 2009 2010 2011 20 12 2013 2014 2015 2016 2017 2018 2019 2020 20 21 2022 2023 2024 2025 CONSERVATIVE LEVERAGE MAINTAINED (1) As at December 31 each year, except 2025 as at March 31. (2) Lender financial covenants include a maximum net debt to capitalization ratio of 50% and a minimum EBITDA interest coverage ratio of two times, which becomes effective if the net debt to total capitalization ratio exceeds 42.5%. HISTORICAL NET DEBT – TO – INVESTED CAPITAL RATIO (%) (1) Lender Covenant = 50% (2) 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
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POSITIVE ESG & CARBON STORY
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31 OUR GOALS OUR VISION & PURPOSE Embracing a culture of sustainability excellence and world-leading sustainability practices to advance renewable wood products as part of the climate solution Respecting Nature. Building Sustainably. A Sustainability Strategy to Invest in our Future. Long-standing strategy of purposeful growth and geographic lumber diversification. Commitment to investing in our people, operations and sustainable forestry. Dedicated ESG leader and renewed sustainability strategy rolled out in 2022. BUILDING VALUE SUSTAINABLY Our goal is that everyone returns home safely Our goal is to develop a workforce that reflects the diversity and strengths of our communities Our goal is to have a positive influence on the climate and environment Climate People Safety
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CONTACT INFORMATION &RESOURCES
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33 ANALYST COVERAGE ketan.mamtora@research.bmo.com(212) 883-5102 Ketan MamtoraBMO CAPITAL MARKETS hamir.patel@cibc.com(604) 331-3047 Hamir Patel CIBC CAPITAL MARKETS john.cooney@era-research.com(604) 886-5741 John CooneyEQUITY RESEARCH ASSOCIATES daryl.swetlishoff@raymondjames.ca(604) 659-8246 Daryl SwetlishoffRAYMOND JAMES matthew.mckellar@rbccm.com(403) 476-9042Matthew McKellarRBC CAPITAL MARKETS ben.isaacson@scotiabank.com(437) 996-8535Ben IsaacsonSCOTIA CAPITAL sean.steuart@tdsecurities.com(416) 308-3399 Sean Steuart TD COWEN
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34 CONTACTS & RESOURCES RICK POZZEBON EVP & Chief Financial Officer 604-689-6804 richard.pozzebon@interfor.com MIKE MACKAY VP, Corporate Development & Treasury 604-689-6846 mike.mackay@interfor.com ADDITIONAL RESOURCESBRYAN FAST Director, Corporate Development & Investor Relations 604-451-2823 bryan.fast@interfor.com