WESTERN FOREST PRODUCTS INC. INVESTOR PRESENTATION
November 2023
TSX:WEF
Forward Looking Statements and Non-GAAP
Financial Measures
All financial references are expressed in C$ unless otherwise noted.
This presentation contains statements and estimates that may constitute forward-looking statements under applicable securities laws. Readers are cautioned against placing undue reliance on forward-looking statements. All statements herein, other than statements of historical fact, may be forward-looking statements and can be identified by the use of words such as "will", "estimate", "commit", "anticipate", "expect", "should", "could", "continue", "may", "pursue", "explore" and similar references to future periods.
Forward-looking statements in this presentation include, but are not limited to, statements relating to our current intent, belief, projection or expectation with respect to: domestic and international market conditions, demands and growth; economic conditions; our acquisition, growth, marketing, product, wholesale, operational, production and capital allocation and investment plans and strategies including, but not limited to, our dividend plan and share repurchase plan; our sustainability-linked credit facility; our expected operating results and future earnings stability; our competitive position and expectations regarding future competition; the impact of mass timber developments on climate change and wood products demand; the impact of wood products on the global carbon balance and climate change; fibre availability; legal and regulatory developments; the Company's ability to diversify and grow its business through its strategic acquisitions; the closing of the TFL 39 Block 2 Limited Partnership transaction and the expected timing thereof; discussions with area First Nations around future acquisitions of ownership interests in Tsawak-qin Limited Partnership; opportunities relating to carbon and carbon credits and alternatives for the Company's wood residuals and waste; and the expected completion times, budgets, results and returns of the Company's capital projects.
Although such statements reflect management's current reasonable beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, there can be no assurance that forward-looking statements are accurate, and actual results and performance may materially vary. Many factors could cause our actual results or performance to be materially different including: changes in economic and financial conditions, changes in demand for forest products, changes in competition and selling prices, international trade disputes, changes in foreign currency exchange rates and interest rates, labour disputes and disruptions, natural disasters, changing relations with First Nations groups, the availability of fibre and allowable annual cut, developments and changes in laws and regulations affecting the Company or the forestry industry or changes to the implementation of such laws and regulations by governmental authorities, changes in the price of key materials for our products, changes in business opportunities, changes occurring in the counterparties whom we do business with, existence of a public health crisis (including future developments in the COVID-19 pandemic) and other factors discussed in the Company's Management's Discussion & Analysis for the three months and year ended December 31, 2022 (the "MD&A"), which is available on our website at www.westernforest.com. The foregoing list is not exhaustive, as other factors could adversely affect our actual results and performance. Forward- looking statements are based only on information currently available to us and refer only as of the date hereof. Except as required by law, we undertake no obligation to update forward-looking statements.
During the course of this presentation, certain non-GAAP financial information will be presented. | |
Definitions and reconciliation of terms can be found in the MD&A for Western Forest Products Inc. | 1 |
(the "Company"). |
Western At A Glance
A Specialty Wood Products Company
Western At A Glance
Strong
Environmental, Social, &
Governance ("ESG")
Practices and Policies
$1.16 Billion
Last 8-years
Average Annual Revenue
$139 Million
Last 8-years
Average Annual EBITDA
36%
Of Historical Sales to International Markets
1+ Billion
Board Feet of Annual
Lumber Capacity
at 7 Sawmills
Four
Remanufacturing Facilities,
Two Glulam Facilities, One
Distribution Centre
5.8 Million m3
Of Allowable Annual Cut
From Our B.C. Timberlands
2,000+
Employees
A Global Leader In Specialty Lumber Products | 3 |
Why Own Western
Leading supplier of wood products
Strong ESG practices and policies
Business of scale and leader in our key markets
Superior timber asset base and secure fibre supply
High-value, diverse products serving global markets
Specialty products focus
Margin-focused strategy with exposure to growing lumber demand
Balanced approach to capital allocation
Western Is The Premier Wood Products Company To Own
4
Our Products' End Uses
Outdoor
Living
Decking, Timbers,
Fencing Products,
Outdoor Structures
Exterior
Appearance
Siding, Trim & Fascia,
Soffits, Door &
Window Products
Interior
Living
Interior Paneling,
Interior Mouldings,
Architectural Millwork,
Stair Components
Structural
Timbers, Framing,
Japanese Housing,
Engineered Products
Industrial
Lamstock, Packaging &
Crating, Cross Arms,
Mat Stock, Bridges,
Docks & Rail Ties
Western's Products Are Used In Multiple End Uses Around The World
5
Wood Is Renewable, Durable And Naturally Beautiful
6
Wood As A Building Material
Wood is the only major building material that
Wood vs. Steel vs. Concrete(1)
is renewable
Wood is recyclable and biodegradable
Total Energy Use
+140%
+70%
Greenhouse Gases
+81% +45%
Wood is beautiful and aesthetically pleasing
Wood products help reduce greenhouse gases and have the lowest impact of all
CO2 building materials on air and water quality
Wood Steel Concrete
Air Pollution
+67%
+42%
Wood | Steel | Concrete |
Solid Waste
+96%
+36%
Wood products require less energy to produce than concrete and steel
Wood products result in less solid waste than concrete and steel
Wood Steel Concrete
Ecological Resource Use
+97%
+16%
Wood | Steel | Concrete |
Water Pollution
+1,900%
+97%
(1) Source: ATHENA™ Sustainable Materials Institute life-cycle research via the Western Red Cedar Lumber Association
Wood | Steel | Concrete | Wood | Steel | Concrete |
Wood Is A Desireable Building Material | 7 |
Mass Timber Buildings Further Support The Growth Of Wood As A Building Product
Increased use of wood in buildings will drive increased wood products demand
Maximizing wood use in
both residential and
commercial construction
could remove an estimated
21 Million | = 4.4 Million |
Tons of CO2 Annually | Cars Taken Off |
The Road Annually(1) |
Links To External Resources
(1) Source: Think Wood
www.naturallywood.com
www.naturallywood.com
An Opportunity To Grow The Demand For Wood Products
8
Wood Products Role in Carbon Sequestration
New trees are planted and the cycle of carbon removal continues
When trees are
harvested, the carbon
remains stored in
wood products
Growing trees absorb carbon from the air and release oxygen
As trees mature the
rate of carbon
removal decreases
9
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Disclaimer
Western Forest Products Inc. published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 23:53:14 UTC.
