West Fraser Timber Co. Ltd. (NYSE:WFG) Q2 2023 Earnings Conference Call July 27, 2023 11:30 AM ET Company Participants Chris Virostek - Chief Financial Officer Ray Ferris - President and Chief Executive Officer Sean McLaren - Chief Operating Officer Conference Call Participants Hamir Patel - CIBC Capital Markets Sean Steuart - TD Securities Ketan Mamtora - BMO Capital Markets Paul Quinn - RBC Capital Markets Andrew Kuske - Credit Suisse Operator Good morning, ladies and gentlemen. Welcome to West Fraser's ...

Financial Data and Key Metrics Changes - West Fraser generated $58 million of adjusted EBITDA in Q1 2023, down from $70 million in Q4 2022, which included a one-time $7 million benefit from carbon credits and a $14 million insurance recovery [6][10] - The North American EWP segment's adjusted EBITDA fell to $31 million from $109 million in the prior quarter, impacted by a $15 million inventory write-down [7] - The lumber segment improved to zero adjusted EBITDA from negative $77 million in the prior quarter, which had included a $39 million inventory write-down [8] - Cash from operations was a use of $198 million for the quarter, with cash net of debt decreasing to $309 million from $625 million in the previous quarter [10][15] Business Line Data and Key Metrics Changes - The Pulp & Paper segment generated $7 million of adjusted EBITDA in Q1 2023, down from $15 million in the prior quarter [9] - European adjusted EBITDA was $20 million in Q1, down from $30 million in Q4, affected by a one-time $7 million benefit from carbon credits [9] Market Data and Key Metrics Changes - Demand in North America remained soft due to rising mortgage rates impacting overall consumption [17] - Production costs began to decrease, and demand improved, particularly in the U.S. South lumber and OSB segments [18] - The wood building products industry may face challenges from further rate hikes, ongoing labor constraints, and muted product demand due to housing affordability issues [23] Company Strategy and Development Direction - West Fraser's capital allocation strategy focuses on reinvesting in the business, maintaining financial flexibility for growth opportunities, and returning excess capital to shareholders [12][14] - The company remains optimistic about its U.S. growth strategy despite challenges in British Columbia due to government policies affecting lumber production [22] - The company plans to invest $500 million to $600 million in capital expenditures in 2023, including $100 million for sawmill modernization in Texas [16] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary cost pressures have moderated across the supply chain, with expectations for this trend to continue through 2023 [24] - Positive signs were observed in the spring building season, with easing mortgage rates potentially driving new construction [25] - Management expressed confidence in the company's ability to navigate challenges and capitalize on growth opportunities due to its disciplined capital allocation approach [26][27] Other Important Information - West Fraser has raised investment grade ratings from three key agencies and maintains strong liquidity with combined cash and bank lines approaching $2 billion [15] - The company has generated over $8.5 billion in cash from operations since 2016, with more than 50% returned to shareholders through buybacks and dividends [14] Q&A Session Summary Question: Timing of Allendale restart - Management expects to restart the Allendale facility at the end of Q2 or early Q3 [29] Question: Capital allocation and share repurchase - The company has not repurchased shares since renewing the NCIB due to market conditions and will look for opportunities when it makes sense [30][31] Question: Flexibility in capital expenditures - Management indicated they have significant flexibility to adjust capital expenditures based on market conditions, but currently, they are proceeding with their capital program [32][33][36] Question: Premium for Southern Yellow Pine - Management noted a surprising premium for Southern Yellow Pine, attributing it to product substitution and lean supply chains [37][38][42] Question: Pulp downtime and fiber availability - Management highlighted that the curtailments in BC are primarily due to fiber availability rather than cost [43] Question: Opportunities in the siding market - Management expressed excitement about the Allendale facility but did not comment specifically on siding market participation [44] Question: Balance sheet and M&A appetite - Management is comfortable with liquidity and is open to M&A opportunities if they align with the company's strategic goals [47][49] Question: Mass timber market potential - Management sees mass timber as a growing market but considers it still in early stages with potential long-term opportunities [55][58] Question: European OSB prices and softwood lumber trade - Management noted that European OSB prices have stabilized but the market remains choppy, and there is little progress on softwood lumber trade negotiations [61][62]

West Fraser Timber Co Ltd (NYSE:WFG) Q4 2022 Earnings Conference Call February 15, 2023 11:30 AM ET Company Participants Raymond Ferris - President, CEO & Corporate Director Christopher Virostek - SVP, Finance & CFO Christopher McIver - SVP, Marketing & Corporate Development Conference Call Participants Ketan Mamtora - BMO Capital Markets Hamir Patel - CIBC Capital Markets Sean Steuart - TD Securities Paul Quinn - RBC Capital Markets Operator Good morning, ladies and gentlemen, and welcome to the West Frase ...

INVESTOR PRESENTATION February 2023 Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our 2022 Annual 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 year ended December 31, 2022 (our "2022 Annual MD&A"). This Presentation uses various Non-GAAP and other specified financial measures, including ...

West Fraser Timber Co. Ltd. (NYSE:WFG) Q3 2022 Earnings Conference Call October 27, 2022 11:30 AM ET Company Participants Ray Ferris - President & Chief Executive Officer Chris Virostek - Senior Vice President & Chief Financial Officer Chris McIver - Senior Vice President, Marketing & Corporate Development Conference Call Participants Sean Stewart - TD Securities Hamir Patel - CIBC Capital Markets Mark Wilde - BMO Paul Quinn - RBC Operator Good morning, ladies and gentlemen, and welcome to the West Fraser Q ...

INVESTOR PRESENTATION October 2022 Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q3 2022 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 and nine months ended September 30, 2022 (our "Q3 2022 MD&A"). Additional information is also discussed in our MD&A for year ended Dece ...

INVESTOR PRESENTATION July 2022 West Fraser Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q2 2022 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 and six months ended June 30, 2022 (our "Q2 2022 MD&A"). Additional information is also discussed in our MD&A for year ended D ...

West Fraser Timber Co. Ltd. (NYSE:WFG) Q2 2022 Earnings Conference Call July 28, 2022 11:30 AM ET Company Participants Ray Ferris - President and Chief Executive Officer Chris Virostek - Chief Financial Officer Chris McIver - Senior Vice President, Marketing and Corporate Development Conference Call Participants Sean Steuart - TD Hamir Patel - CIBC Mark Wilde - BMO Paul Quinn - RBC Operator Good morning, ladies and gentlemen, and welcome to the West Fraser Q2 2022 Results Conference Call. At this time, all ...

MANAGEMENT'S DISCUSSION & ANALYSIS INTRODUCTION Unless otherwise indicated, the financial information contained in this MD&A is derived from our Interim Financial Statements, which have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board. This MD&A uses various Non-GAAP and other specified financial measures, including "Adjusted EBITDA", "Adjusted EBITDA by segment", "available liquidity", "total debt to ...

INVESTOR PRESENTATION April 2022 West Fraser Financial Information: The financial information related to West Fraser contained in this Presentation is derived from our Q1 2022 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 March 31, 2022 (our "Q1 2022 MD&A"). Additional information is also discussed in our MD&A for year ended Decembe ...