Raymond James Institutional Investors Conference March 5, 2019 - PowerPoint PPT Presentation

Raymond James Institutional Investors Conference March 5, 2019 – Orlando, Florida

Notices Forward-Looking Statements & Non-IFRS Financial Information • All financial references are expressed in US$ unless otherwise noted. • This presentation contains forward-looking statements and estimates. • Such statements and estimates are based on assumptions as to the future and on management’s current expectations and are, naturally, subject to risks and uncertainties. • 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 and quarterly 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. 2

Company Overview Norbord Snapshot North America • Leading manufacturer of wood-based panel products • Largest global producer of Oriented Strand Board (OSB) – Stated OSB capacity of 9.0 Bsf- 3/8” (1) – Stated panel capacity (including particleboard & MDF) of 9.9 Bsf- 3/8” (1) – Approximately 2,700 employees at 17 plants across the US, Canada and Europe • Listed on the NYSE and TSX (“OSB”) • Report in US dollars and in accordance with IFRS • 2018 sales of $2.4 billion Panel Capacity by Region (1) Europe Europe US 21% 42% Oriented Strand Board (OSB) 9.9 Particleboard Bsf-3/8" (1) Medium Density Fiberboard (MDF) Furniture Canada 37% 3 (1) Based on stated annual capacity as of December 31, 2018. Norbord's total OSB capacity increased by 560 MMsf-3/8" effective December 31, 2018 based on recent capital investments and improved efficiency.

Industry Overview Favourable Long-term OSB Industry Fundamentals North American OSB Demand and Capacity 45.0 100% 90% 40.0 80% 35.0 Effective Demand / Capacity 26.9 28.0 28.6 29.2 28.3 27.6 27.0 26.7 26.9 27.9 28.3 28.4 27.9 27.9 29.0 29.8 30.2 30.6 70% Capacity (Bsf-3/8") 30.0 60% 25.0 50% 20.0 40% 15.0 30% 10.0 20% 5.0 10% – – Effective Capacity Mothballed Capacity Effective Demand / Capacity Source: Forest Economic Advisors, LLC (FEA) 4

Industry Overview North American OSB Industry Capacity of 27 Bsf North American OSB Installed Capacity: 37 Mills in Operation 7 Mills (Re)started in 2012/13 5 Mills (Re)started in 2017/18 1 Mill Idle Norbord’s Huguley, AL mill resumed Norbord Mill production in October 2017 Note: Excludes OSB siding production and capacity. 5 Source: APA, company documents and other public filings

Appendices Historical North American OSB Prices • OSB prices are tied to demand for building products, which is influenced by the general economy, demographics and the need for housing North Central Benchmark OSB Price $400 $350 $300 Annual Average NC Price 15-year average: $253 US$ per Msf 7/16" $250 $200 $150 $100 $50 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 423 364 285 145 137 154 212 198 203 417 219 193 226 293 370 Q2 443 297 238 156 179 146 295 173 235 347 219 193 264 330 426 Q3 351 303 181 177 201 178 180 184 313 252 216 204 301 409 363 Q4 264 317 166 165 170 172 191 190 332 245 216 242 285 379 243 Average 369 320 217 161 172 163 219 186 271 315 218 209 269 353 351 6 Source: Random Lengths

Business Strategy Significant OSB Substitution Opportunity in Industrial End Uses 2017 North American Panel Consumption New Home Repair & Remodel Industrial 17% 21% 38% 16 Bsf- 3/8” 8 Bsf- 3/8” 50% ~21 Bsf- 3/8” 62% 33% 79% OSB Plywood MDF & PB Furniture EWP Commercial Roofing Engineered Packaging Norbord is a leading supplier to current industrial end uses Source: APA – The Engineered Wood Association, FEA, RISI, US Forest Products Annual Market Review and Prospects (USDA FS), US International Trade Commission, Norbord estimates 7

Industry Overview Europe: Strong Demand Growth Driven by Substitution European OSB Demand (million m 3 ) OSB Share of Structural Panels 8% North America 2005-2018F CAGR Europe 8 Source: Forest Economic Advisors, LLC (FEA), European Panel Federation (EPF) and Norbord estimates Source: Eurostat, UN Comtrade Database, Destatis and Norbord estimates

Business Strategy Inverness Mill Expansion Supports Increasing European Customer Demand - New continuous press line started up in Q4/2017 - Original two press lines demolished during Q2/2018 - New finishing end completed in Q4/2018 - In January 2019, Board of Directors approved US$46 million (£35 million) second phase investment to further expand capacity 9

Business Strategy Disciplined Capital Allocation Capex Investment (US$ millions) • Three main priorities: – Re-invest in the business – Optimize capital structure – Return cash to shareholders • 2018 capex of $204 million • 2019 capex budget of $150 million ₋ Includes investments to prepare Minimum Chambord, Quebec mill for restart (when Maintenance warranted by customer demand) and $25 million Inverness, Scotland phase 2 project (1) (1) 2015 onwards reflects Norbord following completion of merger with Ainsworth. Pre 2015 reflects Norbord excluding Ainsworth. 10

Financial Overview Leverage Metrics Significantly Improved Adjusted EBITDA vs Net Debt Quarterly Net Debt to Adj. EBITDA LTM Adj. EBITDA (in US$ millions) $300 12x 11.0x $275 $250 $225 9x $200 $175 $150 6x $125 $100 $75 3x $50 $25 0.6x $0 0x Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 11

Financial Overview Track Record of Value Creation 15 Year Average ROCE % (1) 24% 25% 20% 15% 10% 5% 0% Norbord Peer1 Peer2 Peer3 Peer4 Peer5 Peer6 Peer7 Peer8 Source: Capital IQ $200M >$1B $1.4B 5.2M Debt permanently repaid Capital invested Dividends paid out Shares repurchased (1) Return on capital employed (ROCE) is a measure of financial performance focusing on cash generation and the effective use of capital. ROCE is calculated as Adjusted EBITDA divided by average capital employed (operating working capital, PP&E, goodwill, intangibles, timberlands & licences). 12

Norbord Inc. Suite 600 One Toronto Street Toronto, Ontario, M5C 2W4 Canada Tel: 416-365-0705 www.norbord.com