2014 Annual General Meeting May 2, 2014
Robert J. Harding Chair May 2, 2014
Peter Wijnbergen President & CEO May 2, 2014
Forward Looking Statements and Non-IFRS Financial Measures • All financial references are expressed in US$ unless otherwise noted. • Financial numbers prior to 2010 were prepared in accordance with CGAAP, while numbers from 2010 onward have been restated and prepared in accordance with IFRS. • This presentation contains forward-looking statements and estimates. • Actual company results could differ materially from a conclusion, forecast or projection in the forward-looking information. • Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information can be found in the company ’ s annual information form, • annual MD&A, and on Norbord ’ s website (www.norbord.com) about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. • During the course of this presentation, certain non-IFRS financial information will be presented. Definitions and reconciliation of terms can be found in the Company ’ s annual and quarterly MD&A. May 2, 2014 4
2013 Highlights US housing starts up 20%; UK starts up 30% Safely restarted Jefferson, Texas mill North American OSB prices highest since 2005 Initiated CAD $0.60 quarterly dividend May 2, 2014 5
Slower Start to 2014 Due to Extreme Winter, Stronger Second Half Expected (US $ millions, Q1 2013 Q1 2014 except per share and price information) NC OSB Price $ 417 $ 219 Sales 365 303 EBITDA 111 27 Earnings 67 7 EPS (diluted) 1.26 0.13 May 2, 2014 6
Norbord Committed to Returning Cash to Shareholders Through Dividends Dividend reflects positive view of core markets (US$ millions) 287 188 175 Dividends Maintenance capex Interest 2014 2012 2013 Cash Commitments EBITDA EBITDA May 2, 2014 7
2013 Best Result Since 2005 (US $ millions, 2013 2012 except per share and price information) NC OSB Price $ 271 $ 315 Sales 1,149 1,343 EBITDA 188 287 Earnings 71 149 EPS (diluted) 1.56 2.79 ROCE 23% 35% May 2, 2014 8
Balance Sheet Improved Rapidly Credit rating upgrades from DBRS and Moody’s Strong Liquidity Q4 2013 (US$ millions) Added to S&P/TSX Cash $ 193 Composite Index Bank Lines 241 Securitization 100 Refinanced 2015 bonds at lowest ever coupon - 5.375% Liquidity $ 534 Minimized warrant dilution May 2, 2014 9
Jefferson Mill Now Operating at Capacity May 2, 2014 10
Production Increasing to Meet Growing Demand Norbord Stated Capacity - % Utilization 85% 80% 75% 70% 65% 60% 2009 2010 2011 2012 2013 May 2, 2014 11
World-Class Safety Performance Injury Rate (OSHA Recordable Injury Rate*) 3.21 2.24 2.12 1.70 1.52 1.30 0.89 0.78 0.74 2005 2006 2007 2008 2009 2010 2011 2012 2013 * Per 200,000 hours worked May 2, 2014 12
US Housing Starts Recovering US Housing Starts (000s) 1,800 1,550 1,360 1,354 1,100 927 905 780 609 587 554 2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F Source: US Housing economists consensus May 2, 2014 13
North American OSB Market Will Tighten as 2014 Progresses Industry OSB Volume (Bsf 3/8”) 7 6 Effective Capacity 5 Demand 4 3 Q1 Q2 Q3 Q4 Source: Norbord Estimates May 2, 2014 14
Forecast OSB Prices Above Long-Term Average North Central Benchmark OSB Price (US$ per Msf 7/16”) 300 $255 250 15 year Average 200 150 100 05 06 07 08 09 10 11 12 13 14F 15F Source: Random Lengths & Analyst Estimates May 2, 2014 15
Core European Housing Markets Recovering Housing Starts (000s) 250 Germany +12% per year 200 150 UK +30% in 2013 100 50 2009 2010 2011 2012 2013 2014F May 2, 2014 16
Consistently Strong Performance in Europe European EBITDA (US$ millions) 81 46 44 39 37 35 32 17 4 2005 2006 2007 2008 2009 2010 2011 2012 2013 May 2, 2014 17
Focus on OSB Growth in North America and Europe
Norbord Operates in the Two Significant Global OSB Markets Industry OSB Capacity (MMsf 3/8”) 30 20 10 0 North Europe South Asia America America May 2, 2014 19
Demand Growth Ahead in Both Key Markets OSB Share of Structural Panels 75% 50% North America 25% Europe 0% 80 85 90 95 00 05 10 Source: FEA and Norbord estimates May 2, 2014 20
Norbord a Strong Regional Player in Europe Norbord OSB mills May 2, 2014 21
Reinvesting to Optimize North American Mills Capex Investment (US$ millions) 160 Capex Greenfield Expansion 120 80 40 0 May 2, 2014 22
Huguley Mill Rebuild Underway • Stated capacity 500 MMsf • Preliminary work focused on continuous press rebuild May 2, 2014 23
Norbord’s Strategy Focused on Growth in OSB Develop a world class safety culture • Pursue growth in OSB • Own highest-quality assets with • lowest cost position Maintain a margin-focused operating • culture Focus on growth customers through • best-in-class service and product development Allocate capital with discipline • May 2, 2014 24
2014 Annual General Meeting May 2, 2014
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