West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q2 2019 Earnings Presentation
10 slides from West Fraser Timber's earnings presentation, July 2019
Slide 1: Q2 Earnings Presentation
Q2 Earnings Presentation July 2019
Slide 2: Forward-looking statements and non-IFRS measures
2 General: This presentation and comments associated with it contains Accordingly, readers should exercise caution in relying upon forward- historical information, descriptions of current circumstances and looking- statements and WFT undertakes no obligation to publicly statements about potential fu
Slide 3: Demand conditions U.S.
Demand conditions U.S. 3 U.S. Housing Starts (not seasonally adjusted) Leading indicator of Remodeling Activity Monthly $B 4 Qtr Moving Improvements and Repairs 140 $350 8.0% $340 7.0% 4 Qtr Moving rate of Change 120 $330 6.0% 100 Repair and renovation growth $320 5.0% 80 continues Seasonally adjust
Slide 4: Supply conditions
Supply conditions 4 Billion fbm Lumber Supply MMfbm North America Curtailments 25 800 Down 4% 700 Mix of 20 temporary 600 and permanent 15 Up 1% 500 Down 9% 400 10 300 Down 16% 200 5 100 0 0 BC Canada US Total NA 2018Q4 2019 Q1 2019 Q2 Ytd 04-18 Ytd 04-19 Source: Western Wood Products Association, m
Slide 5: Consolidated Financial Results
Consolidated Financial Results 5 $ Millions Adjusted EBITDA Q2-19 Q1-19 Q2-19 Q1-19 Lumber $ 39 $ 84 Sales $ 1,317 $ 1,241 Panels 10 15 Cost and Expenses 1,375 1,231 Restructure/Impairment 26 - Pulp & Paper 7 11 Operating earnings (84) 10 Corporate/Other - - Finance Expense (13) (11) Total $ 56 $ 11
Slide 6: Q2 Consolidated Adjusted EBITDA Reconciliation
Q2 Consolidated Adjusted EBITDA Reconciliation 6
Slide 7: Q2 Lumber Adjusted EBITDA Reconciliation
Q2 Lumber Adjusted EBITDA Reconciliation 7
Slide 8: Q2-19 versus Q1-19
Q2-19 versus Q1-19 8 $ millions unless Q2 Q1 Change otherwise indicated 2019 2019 Lumber Production (MMfbm) 1,536 1,462 74 Production up slightly despite similar curtailments in both 5% quarters due to stronger operating performance Lumber Shipments (MMfbm) 1,686 1,444 242 SPF and SYP shipments high
Slide 9: Liquidity
Liquidity 9 Scheduled maturities Available liquidity $900 $800 $900 $800 $700 $700 $600 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $100 $0 -$100 2017 2018 Q1-17 Q1-18 Q1-19 Q2-19 $0 2019 2020 2021 2022 2023 2024 Bank lines Cash Increase in revolving credit facility Term loan Notes Revolver Ot
Slide 10: Summary
Summary 10 First Half Headwinds Second Half Opportunities ✕ Major maintenance shut downs ✓ Resume normal operating at both NBSK mills schedules in pulp and lumber operations ✕ Cold and wet weather interrupts operations, potentially affecting ✓ Moderating weather conditions housing activity ✓ Potenti