Slides
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Canfor Corporation. January 2026
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2 CIBC Western Institutional Investor Conference Pat Elliott CFO, SVP Finance & Corporate Secretary The presentation and answers to questions today contain forward - looking statements which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Factors that could have a material impact on any future oriented statements made herein include, but are not limited to: general economic, market and business conditions, product selling prices, raw material and operating costs, foreign exchange rates, interest rates, changes in law and public policy, the outcome of trade disputes, and opportunities available to or pursued by the Company. For further details on these factors and our assumptions and applicable risks and uncertainties, please refer to Canfor Corporation’s Annual Report for the year ended December 31, 2024 available at www.canfor.com or www.sedar.com . Dan Barwin Head of Corporate Development
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33 Sawmills (6 BBF annual capacity)* 16 Residual & Value - added facilities 2 Pulp mills (including integrated paper machine) * Proforma following announced investments in US South and Sweden
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81% 7% 12% Regional Lumber Capacity 2012 Executing on diversification strategy to support more stable returns over the cycle. Lumber business evolution. Disciplined Approach to Growth Over 3.4 BBF capacity acquired through M&A (~C$590/Mfbm) since 2013 1 Significant Growth in US South Achieved through targeted CAPEX, strategic acquisitions Strong European Platform Providing transformational growth and diversification; profitable through the cycle Well Capitalized Mills in Alberta Providing critical supply of SPF lumber in low - cost jurisdiction Rightsized BC Footprint Reduced exposure supporting improved free cash flow generation, reducing duty exposure Balance Sheet Remains Solid Company well - positioned to navigate current market dynamics Highlights. 4 1 Vida capacity and purchase price reflective of Canfor’s 77% ownership * Includes ongoing investments in Arkansas and Sweden ** Excludes one - time items
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US housing starts forecast. Positive demographics Homeownership rate of ages 25 - 34 yrs. old are expected to increase 1 - 1/2 % per year Increased Tenure & Interest Rates Older homeowners are staying in their homes longer, 1 in 3 reporting they do not plan to sell due to low interest rates on current home New Homes Cheaper than Existing New homes on a per square foot basis are cheaper than existing homes listed, driving buyers into the new home market Whole Market Affordability Long term interest rates to continue putting pressure on affordability through 2026 Economic & Political Economic outlook continues to be uncertain maintaining would be buyers on the sidelines Considerations. Total units 1,956 2,068 1,801 1,355 906 554 587 609 781 925 1,003 1,112 1,174 1,203 1,250 1,290 1,380 1,601 1,553 1,420 1,367 1,338 1, 300 Single (%) 82% 83% 81% 77% 69% 80% 80% 71% 69% 67% 65% 64% 67% 71% 70% 69% 72% 70% 65% 67% 74% 69% 70% Source: US Census Bureau, Canfor Market Intelligence 5 1,579 1687 1438.6 1021.9 605.2 430.6 458.9 419.9 525.9 607.8 636.1 704.9 768.9 837.5 866.4 877.8 982.7 1112.9 995.3 942.6 1007 922 910 345 351 335 309 283 109 116 178 245 307 355 397 392 354 374 402 389 474 548 472 354 416 390 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 THOUSANDS OF UNITS Single Multi Forecast
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US home affordability index. Source: US Federal Reserve, Canfor Market Intelligence 6 Long - term baseline 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Affordability Index (1984=1.00) Improving Declining
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Interest rate sensitivity. Source: US Census Bureau, FRED, Canfor Market Intelligence 7 30 35 40 45 50 55 60 65 70 75 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% # of Households that can Afford Median Home Millions 30 - Year Fixed Mortgage Households & Median Home Price Affordability by Rate 20% Increase
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Repair and remodel outlook. Aging in Place Increased levels of retrofitting, accessibility, and updates opposed to trading up Average Home Size Existing homes are on average 500 sq. ft. smaller than new construction, leading to increased frequency of home additions Home Equity High levels of homeowner equity help s facilitate larger scale projects for homeowners Existing Home Sales Low existing home sales will moderate growth for larger products leading to reduced relative spending for lumber Materials Cost DIY segment remains highly sensitive to cost, affordability poses risk to near term activity Considerations. 8 Source: US Census Bureau, Canfor Market Intelligence - 5 10 15 20 25 - 50 100 150 200 250 300 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Estimated Consumption (BBF) R&R Spend (2012 USD Billions) R&R spend forecast. Repair & Remodel Spend Est. Consumption
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Our supply chain. 9 • Ability to leverage global platform to support key programs and optimize supply chain • Strong alignment with key customers and channels ( e.g. Home Center) • High - value product mix and diversification efforts supporting more stable returns over the cycle
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10 Our high value product diversification. J grade & Square Edge Dimension Boards, Pattern, Fascia, Clear Visual appearance is primary purchase variable Appearance Application Strength SYP Long Length 22’/24’/26’ SPF & Spruce Metric Sizes Matching sizes to end - user requirements MSR Dimension, Lamina Blanks & SYP Glulam Beams Leverage fibre strength to match demand North America’s largest producer of SYP Glulam
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DeRidder, Louisiana Louisiana greenfield sawmill. • 250 MMfbm capacity (achieved in 2024) • US$160M investment (~$640/Mfbm) • High - speed, top - quartile cost operation producing high - value products • Strategically located to service the strong Texas housing market 11 Highlights:
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• US$130M investment • 115 MMfbm capacity increase, 2 shift operation • Significantly improves cost structure • Completed on budget and on schedule; exceeding initial targets Summary • Improves manufacturing efficiency, versatility and flexibility • Abundant supply of high - quality fibre (2.0 growth to drain ratio) • Increases high value product mix (LAM stock, MSR, CLT Stock) • Top quartile mill close to major end markets • Significant synergies achieved with recently acquired mill in El Dorado Strategic Alignment 12 Modernizing Urbana Sawmill.
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Axis, Alabama Alabama greenfield sawmill. • US$210M investment ($840/ Mfbm ) • State - of - the - art, top quartile sawmill (250 MMfbm capacity) • Optimizes strong fiber basket in region • Improved manufacturing flexibility provides opportunity to capture market premiums on specific products • Completed on budget and on schedule (Q4 2024) 13 Highlights: ~25 miles north of Mobile 13
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14 Duty Deposit Rates Cash Deposit Rate Fiscal Year Description Cash Deposit Rate Effective Dates ADD CVD Total 2022 POR 5 Aug 2024 – Jul 2025 10.5% 6.1% 16.6% 2023 POR 6 Aug 2025 – Jul 2026 35.5% 12.1% 47.6% 2024 POR 7 Aug 2026 – Jul 2027 22.0% Accrued Rate 12.1%* 34.1% 2025 POR 8 Aug 2027 – Jul 2028 10.0% 2025 Accrual Rate (Q3) 12.1%* 22.1% *Based on current CVD rate in effect; Canfor will receive the “All Others” CVD rate for POR7
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Pulp market update. • Pulp pricing under pressure given economic headwinds and reduced demand through 2025 • Softwood capacity reduced by 2.1% through 2025 due to closures and shuts for upgrades . • H ardwood pulp capacity increased by 1.6% from mill additions • Global softwood pulp demand weake r Y - o - Y due to underperformance in developed markets and substitutions • Global pulp sales decreased by 5% in 2025 vs. 2024 mainly from changes in developed markets, offset by China demand Source: PPPC Chemical Market Pulp Forecast 2025 - 2029 (November 2025) Softwood Demand Remains Below Peak Hardwood Demand Continues to Grow Demand Anticipated to Remain Steady Demand Improvement Following Weak Summer 15 World Chemical Market Pulp Demand Annual % Change NBSK Import Price $US/ tonne Global NBSK Prices Decreasing Global Market Pulp Demand In 000s tonnes World Chemical Market Pulp Demand In million tonnes
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Financial highlights. Q3 2025 Summary (Canfor, Excl. CPPI) Net Debt* Liquidity Duty Deposits Total Assets Book Value/Share $ 5 86 M $1.2B $ 1. 1 B $5.1B $24.98 16 *Includes softwood lumber duty loan of $ 3 39 M ** Duty deposits include amount owing under softwood lumber duty loan
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Capital allocation. • Disciplined approach to capital allocation • Continuous reinvestment in operations and targeted external growth • Focus on maintaining strong balance sheet • Opportunistically repurchasing shares under NCIB and returning capital to shareholders • S ignificantly lower CAPEX in 2025/26 following completion of several major projects in recent years Capital Allocation* 2016 – 2025 Q3 YTD $5.3B Total CAPEX Acquisitions Debt Repayment, net Share Repurchases *Canfor Excl. Canfor Pulp ($M) Lumber Pulp Capital Expenditures ($M) 17
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Sustainability at Canfor. At Canfor, sustainability is embedded throughout our operations from the forest to the finished product. We are guided by our Sustainability Framework, which reflects the material topics most important to our stakeholders. Each topic has accompanying goals and targets, the progress of which are outlined in our 2024 Sustainability Report. People Our people and communities thrive because we are focused on safety, inclusion, equity and wellness every day. Safety, health and wellness Community resilience Indigenous relations Inclusion and diversity Planet Our practices and products play an integral role in helping to protect the planet and mitigate climate change. Sustainable forestry Climate change Air quality Water management Waste management Products Our products are sustainable because our manufacturing and supply chain are optimized for responsible resource use. Residuals management Supply chain management Energy management
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Differentiated High - Valued Products Sustainability Focus Diversified Global Platform Well Capitalized Mills Positioned for Growth Value proposition. 19
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Investor contacts. 20 Pat Elliott CFO, SVP Finance & Corporate Secretary Patrick.Elliott@canfor.com (604) 661 - 5441 Dan Barwin Head of Corporate Development Daniel.Barwin@canfor .com (604) 661 - 5390 20