Canfor Update Prince George City Council - November 16, 2015 Canfor - - PowerPoint PPT Presentation

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Canfor Update Prince George City Council - November 16, 2015 Canfor - - PowerPoint PPT Presentation

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Canfor Update Prince George City Council - November 16, 2015 Canfor Corporation CFP Canfor Corporation (CFP) Sawmills Canada 11 in BC c. ' .1 1 in Alberta 10 in US South (4 in Carolinas, 3 in Alabama; 2 in

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SLIDE 1

Canfor Update

Prince George City Council - November 16, 2015

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SLIDE 2

Canfor Corporation

CFP

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SLIDE 3

Canfor Corporation (CFP)

2014 Lumber Sales $2.2 Billion United States Asia Canada Other

Sawmills

11 in BC 1 in Alberta 10 in US South

(4 in Carolinas, 3 in Alabama; 2 in Georgia & 1 in Mississippi)

Capacity: 5.7 billion board feet Green Energy

1 Plant in Alberta 3 Pellet Plants in BC Canada US South

3 2014 Pulp Sales $1.1 Billion Americas Asia Europe

Legend

Sawmills Green Energy Pulp Mills

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SLIDE 4

Significant Strategic Upgrades

From 2010 to 2014, the Canfor lumber business has invested more than $650 million in total capex in regions and

  • perations with excellent fibre base:

$100 million has been spent on sawmill and planer upgrades at facilities in the Prince George region since 2010. $2.7 million in combined spend on capital dust mitigation projects at Prince George facilities. Planer Upgrades Energy Systems Productivity Improvements Grade Optimization

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SLIDE 5

Canfor Pulp Products Inc.

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SLIDE 6

Pulp Mills

1 Intercontinental 2 Northwood 3 Prince George 4 Taylor

5 Canfor Pulp Ltd./ Canfor Pulp Products Inc. Head Office 6 Canfor Pulp Innovation Canada

Pulp Operations

Key Products

1 2 3 6 5 4

Population: 84,000 6 Direct jobs at Canfor Pulp: 1,117 Total Economic Impact of Canfor Pulp in 2014: $668 Million 1. Pulp 2. Pulp 3. Pulp, Kraft Paper 4. BCTMP Pulp

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SLIDE 7

Significant Capital Investments

From 2010 to 2015, Canfor Pulp has invested more than $400 million on capital upgrades in Prince George: $190 million has been spent on odour and particulate reduction $58 million has been spent to increase power generation and energy efficiency $53 million has been spent to improve productivity $102 million has been spent on continuing investments to maintain the mills Air Quality Improvements Power Generation Productivity Improvements Continuing Investment

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SLIDE 8

Reducing Particulate

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

Cantor Pulp: PG, IN and NW Total Particulate Emissions Trend (t/day) 1999 - 2014

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SLIDE 9

Reducing Odour (TRS)

2 4 6 8 10 12 14

ugm/m3

Prince George Annual Average Ambient TRS

Plaza Jail Foreman Van Bien Lakewood Exploration Place

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SLIDE 10

Reducing Greenhouse Gas

450,000 400,000 350,000 300,000

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  • ~ 200,000
~ ] 150,000 100,000 50,000

CO2e Emissions Trend From 1990 to 2013

  • - Northwood Pulp Mill
1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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SLIDE 11

Markets

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SLIDE 12

China Imports (MMfmb)

2,000 4,000 6,000 8,000 10,000 12,000 14,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Volume (MMfbm)

Others New Zealand Indonesia Malaysia Thailand USA Canada Russia 12

#2 Grade 7%

Low Grade, 93% Prime 21% #2 Grade 19% Low Grade 59%

2007 2014

Source: China Customs Source: China Customs

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SLIDE 13

US Lumber Demand

Housing starts not the Only Market to Watch

10 20 30 40 50 60 2013 2014 2015 2016 2017 2018 2019 R&R Industrial Non-residential Mobile Homes Multi Family Homes Single Family Homes

US Lumber Demand

925 975 1,100 1,250 1,300 1,350

  • 200

400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 2016 2017 2018

13

$133 $132 $139 $146 $143 $141 $145 $151 $147 $146 5.6% 2.2% 6.1% 10.0% 7.7% 6.5% 4.3% 3.5% 2.8% 4.0%

  • 20.0%
  • 15.0%
  • 10.0%
  • 5.0%

0.0% 5.0% 10.0% $100 $110 $120 $130 $140 $150 $160 Rate of Change (%) Homeowners Improvements (Billions of $) Four-Quarter Moving Total in Billions Four-Quarter Moving Rate of Change

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SLIDE 14

Pulp: Sustained Ebitda Performance Against Peers

  • $50

$0 $50 $100 $150 $200 $250 $300 $ EBITDA / tonne

Pulp EBITDA per admt pulp (rolling four quarter average)

Producer 1 CFX Producer 2 Producer 3

Reinforcing top quartile performance:

  • Ongoing operational excellence focus
  • Energy optimization
  • Enhancing offerings of premium pulp and

specialty paper

  • Over $250 million of capital investment

since 2010

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SLIDE 15

Canfor in Prince George

GA AL MS FL IN 15

Donations & Scholarships 2015 Canada Winter Games

  • $185,000 donated locally in 2014
  • Kordyban Lodge
  • UNBC
  • United Way of Northern BC
  • Lheidli T’enneh First Nation
  • Spirit of the North Healthcare

Foundation

  • Dry Grad sponsorship
  • High school, college and university

scholarships

  • Other
  • $300,000 on Games tickets; $150,000 in

lumber; $200,000 in cash

  • Over 500 high school students brought in from

surrounding communities to tour UNBC and attend a hockey game

  • Canfor House
  • Warming hut in Games village
  • 5,000 beardos and other merchandise

distributed

  • 70 employee volunteers
  • Legacy venue for Outdoor Ice Oval
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SLIDE 16

16

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SLIDE 17

Contacts

Stephen Mackie

Senior Vice President, Canadian Operations, Canfor

Martin Pudlas

Vice President, Operations, Canfor Pulp