INTERFOR CORPORATION INVESTOR PRESENTATION
NOVEMBER 2021
FORWARD-LOOKING INFORMATION & NON-GAAPMEASURES
Forward-Looking Information:
This release 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 release, 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 the expected closing date, and other relevant factors. Readers are cautioned that actual results may vary from the forward-looking information in this release, 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 release are described in Interfor's annual Management's Discussion & Analysis under the heading "Risks and Uncertainties", which is available on www.interfor.com and under Interfor's profile on www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this report include volatility in the selling prices for lumber, logs and wood chips; the Company's ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company's allowable annual cut ("AAC"); claims by and treaty settlements with Indigenous peoples; the Company's ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia ("B.C."); environmental impacts of the Company's operations; labour disruptions; information systems security; and the existence of a public health crises (such as the current COVID-19 pandemic). Unless otherwise indicated, the forward-looking statements in this release are based on the Company's expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.
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 Management's Discussion & Analysis which are available on www.interfor.com and under Interfor's profile on www.sedar.com.
Currency:
All financial references in this presentation are expressed in Canadian dollars, unless otherwise noted.
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INTERFOR INVESTMENT HIGHLIGHTS
Pure-play North American lumber producer
- Fourth largest lumber producer in North America, with 21 strategically located sawmills
- High exposure to US South region with attractive log costs
Compelling lumber market fundamentals
- Robust demand across all end-use segments, including housing and repair & remodel
- Measured supply growth near-term in the US South; declining supply long-term in BC
Growth-focused strategy
- Long-standingstrategy of growth and geographic lumber diversification
• 10 year lumber production volume CAGR of 9%
Top tier lumber margins and returns on capital
- Industry leading EBITDA margins and return on capital employed
- Well capitalized, low-cost portfolio of sawmills
Balanced capital allocation with significant financial flexibility
- Disciplined approach across growth capex, M&A, share-buybacks and special dividend
- Significant net cash position and >$800 MM of liquidity as of September 30, 2021
Positive ESG and carbon story
- Sustainable forest management practices
- Producer of climate-friendly building products
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FINANCIAL & OPERATING SNAPSHOT
BENCHMARK LUMBER PRICES (US$/MBF)
$1,450 | WSPF Composite (US$/Mbf) | ||||
$1,250 | SYP Composite (US$/Mbf) | ||||
$1,050 | |||||
$850 | |||||
$650 | |||||
$450 | |||||
$250 | |||||
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
ADJUSTED EBITDA ($MM)
$650 $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100
$50 $0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
PRODUCTION VOLUMES (MMBF) | ||||||
750 | ||||||
700 | ||||||
650 | ||||||
600 | ||||||
550 | ||||||
500 | ||||||
450 | ||||||
400 | ||||||
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
LEVERAGE & LIQUIDITY (% & $MM) (1) | ||||||
$1,400 | Available Liquidity ($MM) | 50% | ||||
40% | ||||||
$1,200 | Net Debt / Invested Capital Ratio (%) | |||||
30% | ||||||
$1,000 | 20% | |||||
$800 | 10% | |||||
0% | ||||||
$600 | -10% | |||||
-20% | ||||||
$400 | -30% | |||||
$200 | -40% | |||||
-50% | ||||||
$0 | -60% | |||||
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
(1) Liquidity reflects cash on hand plus amount of undrawn credit facility | 4 |
PURE-PLAY NORTH AMERICAN
LUMBER PRODUCER
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INTERFOR Corporation published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 00:01:01 UTC.
