Core Points - The Government of British Columbia has approved a new First Nations Woodland Licence in the Smithers area, marking a significant milestone in the partnership between West Fraser Timber Co. Ltd. and Lake Babine Nation Forestry Limited Partnership [1][2] - This new licence is a result of contributions from West Fraser and LBN Forestry, aimed at enhancing timber tenure collaboration in British Columbia's forest sector [1][5] Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, focusing on sustainable forest practices [8] - The company produces a variety of products including lumber, engineered wood products, pulp, and newsprint, which are utilized in home construction and industrial applications [8] Indigenous Partnership - The partnership between West Fraser and Lake Babine Nation is designed to integrate Indigenous knowledge with modern forestry practices, ensuring sustainable resource management and economic opportunities for the Lake Babine Nation [3][4] - Lake Babine Nation has established its forestry company in 2016, emphasizing the importance of growing its role in forestry and forest management [9] Economic Impact - The collaboration is expected to create jobs and strengthen the forest economy in British Columbia, benefiting local communities [8] - The new licence builds on previous agreements, including a Joint Development Agreement signed in April 2024 and a Log Supply and Forest Management Agreement signed in January 2025, indicating a long-term commitment to this partnership [7]

Financial Data and Key Metrics Changes - West Fraser generated $84 million of adjusted EBITDA in Q2 2025, representing an approximate 6% margin, continuing to operate within a cyclical downturn [4] - The company exited Q2 with nearly $1.7 billion of available liquidity and a strong cash position net of debts [5][6] - Cash flow from operations was $85 million in Q2, with a net cash balance of $310 million, up from $156 million in the prior quarter [9] Business Line Data and Key Metrics Changes - The lumber segment posted adjusted EBITDA of $15 million in Q2, down from $66 million in Q1, primarily due to lower pricing and higher fiber costs [8] - The North America EWP segment generated $68 million of adjusted EBITDA in Q2, down from $125 million in Q1, driven by lower OSB pricing [8] - The Pulp and Paper segment generated negative $1 million of adjusted EBITDA in Q2, compared to $7 million in Q1, largely due to an inventory write-down [8] - The European business posted $2 million of adjusted EBITDA in Q2, improving from negative $2 million in Q1, linked to higher OSB pricing and shipments [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1,320,000 units on a seasonally adjusted basis in Q2, reflecting a decline in new home construction due to elevated mortgage and interest rates [4] - Repair and remodeling demand remained subdued, impacted by broader macro factors [5] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and liquidity profile, allowing for counter-cyclical investments and growth opportunities [6] - West Fraser is focused on controlling costs and optimizing its mill portfolio to create a more resilient company [13] - The company is prepared to support discussions regarding softwood lumber tariffs and is actively scenario planning for various trade-related outcomes [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges with housing affordability and repair and remodeling markets, leading to modified shipment guidance for 2025 [10] - The company remains optimistic about the longer-term prospects for the industry despite a cloudy near-term outlook due to global trade complexities [17] Other Important Information - The U.S. Department of Commerce released preliminary combined rates for softwood lumber duties at 26.05%, which could result in an expense of $65 million if confirmed [12] - The company successfully amended and extended its $1 billion credit facility and increased its $300 million term loan [9] Q&A Session Summary Question: What have you learned about the substitutability between SPF and SYP? - Management noted that price spreads between products tend to close during high demand and separate during low demand, driven by supply and demand dynamics [20][21] Question: What are your views on a possible lumber export quota? - Management indicated that all options are on the table for discussions regarding lumber and that they are prepared to support the government in these discussions [24][25] Question: Are you cash flow positive in the North American lumber and OSB business? - Management refrained from discussing specific segment cash flow but emphasized the strength of their diversified product portfolio and counter-cyclical investments [27][29] Question: What do you need to do to improve the European business? - Management expressed confidence in their European assets and team, noting that they are well-positioned for recovery as demand improves [47][49] Question: What is the M&A opportunity set looking like? - Management stated they are ready to acquire quality assets if they become available, emphasizing a focus on quality and synergies rather than opportunistic purchases [68][70]

Financial Data and Key Metrics Changes - West Fraser generated $84 million of adjusted EBITDA in Q2 2025, representing an approximate 6% margin, indicating a decline due to a cyclical downturn in the market [4][5] - The company exited Q2 with nearly $1.7 billion of available liquidity and a strong cash position net of debts [5][6] - Cash flow from operations was $85 million in Q2, with a net cash balance increasing to $310 million from $156 million in the prior quarter [10] Business Line Data and Key Metrics Changes - The lumber segment posted adjusted EBITDA of $15 million in Q2, down from $66 million in Q1, primarily due to lower pricing and higher fiber costs [8] - The North America EWP segment generated $68 million of adjusted EBITDA in Q2, down from $125 million in Q1, driven by lower OSB pricing [8] - The Pulp and Paper segment generated negative $1 million of adjusted EBITDA in Q2, compared to $7 million in Q1, largely due to an inventory write-down [8] - The European business posted $2 million of adjusted EBITDA in Q2, an improvement from negative $2 million in Q1, linked to higher OSB pricing and shipments [9] Market Data and Key Metrics Changes - U.S. housing starts averaged 1.32 million units on a seasonally adjusted basis in Q2, reflecting a decline in new home construction due to elevated mortgage and interest rates [4][5] - Repair and remodeling demand remained subdued, impacted by broader macroeconomic factors [5] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and liquidity profile, allowing for counter-cyclical investments and growth opportunities [6][14] - West Fraser is focused on controlling costs and optimizing its mill portfolio to create a more resilient company [14][15] - The company is actively monitoring trade policies and is prepared to support discussions regarding softwood lumber tariffs [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the near-term outlook remains cloudy due to ongoing complexities in global trade, but they are optimistic about the longer-term prospects for the industry [18] - The company is committed to transparency and regular communication with stakeholders regarding potential changes in the operating environment [17] Other Important Information - The U.S. Department of Commerce released preliminary CVD rates for softwood lumber, with a combined rate of 26.05%, which could result in an expense of $65 million if confirmed [12][13] - The company successfully amended and extended its $1 billion credit facility and increased its $300 million term loan [10] Q&A Session Summary Question: What have you learned about the substitutability between SPF and SYP? - Management noted that price spreads between products fluctuate based on demand, with substitution occurring when products are unavailable [21][22] Question: What are your views on a possible lumber export quota? - Management stated that all options are on the table for discussions regarding trade, and they are prepared to support the government in these negotiations [26][27] Question: Are you cash flow positive in the North American lumber and OSB business? - Management refrained from discussing specific segments but emphasized their ability to weather cycles and drive cash flow even in difficult markets [30][31] Question: What do you need to do to improve the European business? - Management expressed confidence in their European assets and team, noting that they are well-positioned for recovery as demand improves [49][51] Question: What is the current state of contractor availability for CapEx projects? - Management indicated that contractor backlogs are shrinking, allowing for better access to contractors and equipment for ongoing projects [67][68] Question: What does the M&A opportunity set look like in the current market? - Management stated they are ready to acquire quality assets if they become available, focusing on opportunities that enhance their portfolio [72][73]

INVESTOR PRESENTATION July 2025 Photo: Angelina Sawmill, Lufkin, Texas, USA Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q2 2025 interim Financial Statements, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") and is discussed in our Managements' Discussion and Analysis ("MD&A") for the three months ended June 27, 2025 (our "Q2 2025 MD&A"). Additional information is also discussed in o ...

MANAGEMENT'S DISCUSSION & ANALYSIS INTRODUCTION This discussion and analysis by management ("MD&A") of West Fraser Timber Co. Ltd.'s ("West Fraser", the "Company", "we", "us", or "our") financial performance for the three and six months ended June 27, 2025 should be read in conjunction with: (i) our unaudited condensed consolidated interim financial statements and accompanying notes for the three and six months ended June 27, 2025 ("Interim Financial Statements"); (ii) our audited annual consolidated financ ...

Core Insights - West Fraser Timber Co. Ltd. reported a decline in demand for wood-based building products in Q2-25, particularly in the North America Engineered Wood Products (NA EWP) segment, due to lower-than-expected spring building activity and ongoing housing affordability challenges [3][4][12] - The company experienced a decrease in sales and earnings compared to Q1-25, with Q2-25 sales at $1.532 billion and a net loss of $24 million, or $0.38 per diluted share [5][10] - Adjusted EBITDA for Q2-25 was $84 million, down from $195 million in Q1-25, reflecting the impact of reduced demand and pricing pressures [5][10] Financial Performance - Q2-25 sales were $1.532 billion, an increase from $1.459 billion in Q1-25 [5] - Q2-25 earnings were a loss of $24 million compared to a profit of $42 million in Q1-25 [5] - Adjusted EBITDA for Q2-25 was $84 million, representing 6% of sales, down from $195 million in Q1-25 [10][41] Market and Demand Outlook - The U.S. housing market showed a seasonally adjusted annualized rate of 1.32 million housing starts in June 2025, with permits issued at 1.40 million units, indicating potential for future demand despite near-term uncertainties [14] - Long-term demand for wood products is expected to be supported by improved housing affordability, stabilization of inflation and interest rates, and an aging U.S. housing stock [13][15] - In Europe, demand for wood products is anticipated to grow in the long term, although near-term challenges persist due to geopolitical developments and inflationary pressures [15] Operational Adjustments - The company is taking steps to ensure operational flexibility and cost control in response to the current demand environment [4] - Capital expenditures in Q2-25 were $78 million, with expected total capital expenditures for 2025 projected to be between $400 million and $450 million [9][22] - The company has reduced its shipment targets for both SPF and SYP lumber due to slower demand and uncertainties related to tariffs [16][18] Segment Performance - Adjusted EBITDA for the Lumber segment was $15 million, while the NA EWP segment reported $68 million [10][42] - The Pulp & Paper segment experienced a slight loss with an Adjusted EBITDA of $(1) million [10][42] - The Europe EWP segment reported an Adjusted EBITDA of $2 million, indicating stable performance amidst market challenges [10][42]

Core Viewpoint - West Fraser Timber Co. Ltd. is set to hold an analysts' conference call to discuss its second quarter 2025 financial and operating results on July 24, 2025 [1][2]. Group 1: Conference Call Details - The conference call will be chaired by Mr. Sean McLaren, President and Chief Executive Officer of West Fraser [2]. - Participants can join the call by dialing a toll-free number or through a webcast [1][2]. - The financial and operating results will be released on July 23, 2025, one day prior to the call [2]. Group 2: Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe [3]. - The company promotes sustainable forest practices and produces a variety of products including lumber, engineered wood products, pulp, and newsprint [3]. - West Fraser's products are utilized in home construction, repair and remodeling, as well as in industrial applications and paper products [3].

Group 1 - West Fraser Timber Co. Ltd. has renewed its $1 billion credit facility and extended its maturity from July 2028 to May 2030 [1] - The company has increased its existing term loan from $200 million to $300 million, maturing in May 2028 [1] - The renewed credit facility is undrawn and available on similar terms as the previous facility [1] Group 2 - As of the end of Q1 2025, West Fraser had over $1.4 billion in available liquidity, enhancing its near-term financial flexibility [2] - The renewal and expansion of the credit facilities further strengthen the company's liquidity position [2] Group 3 - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe [3] - The company produces a variety of products including lumber, engineered wood products, pulp, and newsprint, which are used in various applications such as home construction and industrial uses [3]

Core Viewpoint - West Fraser Timber Co. Ltd. has released its 2024 Sustainability Report, highlighting its commitment to sustainability alongside solid financial performance, and detailing progress made towards environmental, social, and governance goals [1][2]. Sustainability Achievements - The report outlines key achievements for 2024, including a 22% reduction in scope 1 and 2 emissions compared to 2019 levels, and a 13% reduction in scope 3 emissions compared to 2020 levels, both on track to meet 2030 GHG reduction targets [5]. - Manufacturing operations were powered by 75% renewable energy, with all mills progressing on energy reduction road maps [5]. - The company invested $4.3 million through 800 partnerships, focusing on youth support and mental health improvements in rural areas [5]. Partnerships and Community Engagement - West Fraser signed an agreement with the Lake Babine Nation's forestry company to secure long-term fibre supply, recognizing the Nation's role as a resource steward, pending approval from the Government of British Columbia [5]. - The company promotes sustainable forest practices and responsible sourcing through its Sustainable Forest and Wood Procurement Policy, implemented in 2024 [5]. Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, producing a range of products including lumber, engineered wood products, and pulp [3].

Core Points - West Fraser Timber Co. Ltd. held its Annual General Meeting on April 23, 2025, in Quesnel, B.C., where shareholders voted on various matters [1]. Voting Results for the Election of Directors - A total of 60,282,131 shares were voted, representing 75.75% of all outstanding shares [2]. - All director nominees were elected with significant support, including: - Hank Ketcham: 90.39% in favor - Doyle N. Beneby: 96.27% in favor - Eric L. Butler: 99.91% in favor - Reid E. Carter: 98.40% in favor - John N. Floren: 98.97% in favor - Ellis Ketcham Johnson: 98.86% in favor - Brian G. Kenning: 96.71% in favor - Marian Lawson: 99.90% in favor - Sean P. McLaren: 99.93% in favor - Colleen M. McMorrow: 99.93% in favor - Janice G. Rennie: 90.16% in favor - Gillian D. Winckler: 99.58% in favor [2]. Voting Results for Other Matters - Shareholders approved the number of directors to be fixed at twelve [3]. - PricewaterhouseCoopers LLP was appointed as the auditor of the Company [3]. - The resolution on executive compensation (Say-on-Pay) was approved with 90.04% of votes in favor [3]. Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe [5]. - The Company produces a variety of products including lumber, engineered wood products, pulp, and newsprint, which are utilized in home construction, industrial applications, and paper products [5].