Canfor Corporation · TSX:CFP
Canfor — CIBC World Markets Conference 2010
12 slides from Canfor's conference presentation, Jan 21, 2010
Slide 1: CIBC World Markets Conference
CIBC World Markets Conference Jim Shepard – President and CEO January 21, 2010 1 Canfor Corporation
Slide 2: Forward Looking Statements
Forward Looking Statements ► The presentation and answers to questions today contain forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements express
Slide 3: Our History
Our History 3 Canfor Corporation
Slide 4: Canfor Overview
Canfor Overview ► 15 sawmills in Canada (Capacity – 4.4 Bfbm) ► 4 sawmills in the US (Capacity – 0.6 Bfbm) ► 50.2% interest in Canfor Pulp (3 BC interior pulp mills) (Capacity - 1 million admt) Non Core Holdings ► 50% interest in Peace Valley OSB plant ► 2 panel plants in BC – OSB & plywood ► 1 BCTM
Slide 5: Canfor Pulp
Canfor Pulp ► Controlling interest in Canfor Pulp Limited Partnership ► 2007 contributed $60 million cash to Canfor ► NBSK pulp markets are in the midst of a strong recovery CAD millions$ Canfor’s distributions from Canfor Pulp US$/ADMT 18 900 16 850 14 12 800 10 750 8 6 700 4 650 2 0 600 Q1.08 Q2.0
Slide 6: Our Markets - Lumber
Our Markets - Lumber SYP Offshore 1% SYP 12% US 99% SPF 88% SPF Market Focus ► Grow high value customers Offshore 18% • Increase integration with US retail customers Canada 21% • Key Asian customers US 61% ► Grow Asian markets 6 Canfor Corporation
Slide 7: Our Outlook
Our Outlook 7 Canfor Corporation
Slide 8: Margin Focused
Margin Focused Margin (% of Sales) – Lumber Segment 5% 0% (5%) (10%) (15%) (20%) Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Canfor Competitor A Competitor B Competitor C Competitor D Competitor E * Source – CIBC World Markets 8 Canfor Corporation
Slide 9: Margin Focused
Margin Focused Margin (% of Sales) – Lumber Segment 30% 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) (25%) Q 1 /0 4 Q 2 /0 4 Q 3 /0 4 Q 4 /0 4 Q 1 /0 5 Q 2 /0 5 Q 3 /0 5 Q 4 /0 5 Q 1 /0 6 Q 2 /0 6 Q 3 /0 6 Q 4 /0 6 Q 1 /0 7 Q 2 /0 7 Q 3 /0 7 Q 1 /0 8 Q 2 /0 8 Q 3 /0 8 Q 4 /0 8 Q 1 /0 9 Q 2 /0 9 Q 3
Slide 10: China
Lumber Volume - MMfbm 450 China 400 ► Long term commitment to China 350 ► Building codes are more 300 conducive to wood frame construction 250 ► Establishing 2 X 4 for the 200 emerging housing sector 150 ► Significant demand for low grade product 100 ► Provincial and Federal 50 government support fo
Slide 11: Leveraged to Lumber Market Recovery
Leveraged to Lumber Market Recovery 2011 2012 2013 RISI 2x4 (CAD) $264 $313 $355 Change in EBITDA* (in millions $) 800 700 600 500 400 300 200 100 0 2011 2012 2013 Current Production Full Capacity * Base year 2009 11 Canfor Corporation
Slide 12: CIBC World Markets Conference
CIBC World Markets Conference January 21, 2010 12 Canfor Corporation