Growth in Lumber Alberta and Arkansas April, 2014
Forward-Looking Statements This presentation contains certain forward-looking statements about potential future developments or events, in particular those relating to plans to invest additional capital, the expected timing of completion of the Bibler Brothers Lumber acquisition and the potential enhancement of current operations as a result of synergies and efficiencies. These statements are presented to provide reasonable guidance to the reader. Their accuracy and the actual outcomes or results of such developments or events will depend on, and are subject to, a number of assumptions, risks and uncertainties and other factors that could affect the ability of West Fraser to achieve such outcomes or results or execute its business plans, including those matters described in West Fraser’s 2013 Annual Management’s Discussion and Analysis under “Risks and Uncertainties” and may differ materially from those anticipated or projected. Accordingly, readers should exercise caution in relying upon forward-looking statements and West Fraser undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by applicable securities laws. All dollar amounts are expressed in Canadian Currency unless otherwise stated. 2
WEST FRASER LUMBER 1990 Capacity 1,000 MMfbm BRITISH COLUMBIA CHETWYND SMITHERS HOUSTON FRASER LAKE QUESNEL WILLIAMS LAKE 3
WEST FRASER LUMBER 2000 Capacity 2,000 MMfbm (total North American) BRITISH ALBERTA COLUMBIA ARKANSAS CHETWYND SLAVE LAKE SMITHERS HUTTIG HOUSTON BLUE RIDGE FRASER LAKE JOYCE QUESNEL WILLIAMS LAKE LOUISIANA 4
WEST FRASER LUMBER 2005 Capacity 4,700 MMfbm (total North American) BRITISH ALBERTA COLUMBIA CHETWYND SLAVE LAKE SMITHERS HOUSTON BLUE RIDGE FRASER LAKE HINTON QUESNEL WILLIAMS LAKE SUNDRE 100 MILE CHASM 5
WEST FRASER LUMBER 2007 Capacity 6,000 MMfbm (total North American) SEABOARD NORTH CAROLINA TENNESSEE SOUTH CAROLINA ARMOUR ARKANSAS NEWBERRY GEORGIA AUGUSTA LEOLA MAPLESVILLE OPELIKA NEW BOSTON HUTTIG ALABAMA HENDERSON FOLKSTON JOYCE MISSISSIPPI WHITEHOUSE MCDAVID FLORIDA TEXAS LOUISIANA 6
RECENT GROWTH BRITISH ALBERTA COLUMBIA 2014 CHETWYND HIGH PRAIRIE SLAVE LAKE SMITHERS HOUSTON 2012 BLUE RIDGE FRASER LAKE HINTON EDSON QUESNEL WILLIAMS LAKE SUNDRE 100 MILE CHASM 7
RECENT GROWTH ARKANSAS 2014 RUSSELLVILLE MANSFIELD LITTLE ROCK LEOLA NEW BOSTON (TEXAS) HUTTIG 8
ACQUISITION OF BUCHANAN LUMBER, HIGH PRAIRIE, ALBERTA • Acquisition includes: – High Prairie sawmill (current capacity of 110 MMfbm) – Related real estate and transportation business – Timber harvesting rights with AAC of 430,000 m 3 of coniferous and 21,000 m 3 of deciduous timber • Purchase price of $55.4 million plus working capital paid in cash at closing (April 3, 2014) • 180 employees West Fraser intends to expand capacity to approximately 175 MMfbm through an estimated capital investment of $15 million. 9
ACQUISITION OF TRAVIS LUMBER, MANSFIELD, ARKANSAS • Western Arkansas sawmill with a workforce of 140 • Purchase price of US$46 million (C$51 million) plus working capital paid in cash at closing (March 7, 2014) • Current capacity of 110 MMfbm West Fraser is planning expansion to approximately 150 MMfbm through an estimated US$10 million (C$11 million) capital investment. 10
ACQUISITION OF BIBLER BROS., RUSSELLVILLE, ARKANSAS • Well-capitalized mill with 190 employees and annual capacity of approximately 160 MMfbm • Purchase price of US$61 million (C$67 million) plus working capital payable in cash at closing (anticipated April 25, 2014) • Will be West Fraser's fourth sawmill located in Arkansas 11
LUMBER CAPACITY PRO FORMA LUMBER CAPACITY (after planned capital expenditures at acquired mills – 2H 2015) 6,300 MMfbm U.S. South B.C. 37% 39% Alberta 24% 12
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