Western Forest Products (WEF) Investor presentation summary

Strategic direction and vision

• Accelerating the transition to higher-value product lines through targeted investments and leveraging a skilled workforce.

• Five-year vision focuses on modernizing manufacturing, expanding kiln drying and remanufacturing capacity, and growing through acquisitions and organic initiatives.

• Strategic priorities include people and partnerships, stewardship, and business excellence alongside product transition.

• Advancing reconciliation and partnerships with First Nations is integral to long-term strategy.

• Operational focus on adapting to a shifting fibre profile and maintaining healthy, growing coastal forests.

Financial performance and capital management

• Average annual revenue of $1.12 billion and EBITDA of $93 million since 2015.

• Net debt reduced by 57% at the end of 2025, with $229 million in available liquidity and a $250 million credit facility extended to July 2028.

• Significant deleveraging achieved through non-core asset sales, including the announced $80 million Stillwater Forestry Operation divestiture.

• Specialty lumber accounts for 59% of annual sales, with 34% of sales to international markets.

• Dividend suspended in late 2023 in response to weaker market conditions.

Operational excellence and investments

• Achieved 86% operational uptime in 2025, exceeding targets, and improved log inventory turnover by 11% since 2023.

• Ongoing investments in kiln capacity, with new continuous dry kilns and a thermal kiln to be commissioned in 2026.

• Modernization includes new automated grading equipment and slabber head at Duke Point facility.

• Flexible manufacturing platform enables targeting of diverse global markets and maximization of margin opportunities.

• Approximately 76% of lumber revenue is generated from non-commodity products, supporting price premiums.