Page 1

Burnaby , B.C. INTERFOR Building ValueTM Interfor Corporation November 04 , 2021 Interfor Reports Q3'21 Results and Announces Renewal of Share Buyback Program EBITDA¹ of $ 94 million on Sales of $ 664 million Net Cash Position with Available Liquidity of $ 836 million INTERFOR CORPORATION ( " Interfor " or the " Company " ) ( TSX : IFP ) recorded Net earnings in Q3'21 of $ 65.6 million , or $ 1.05 per share , compared to $ 419.2 million , or $ 6.45 per share in Q2'21 and $ 121.6 million , or $ 1.81 per share in Q3'20 . Adjusted net earnings in Q3'21 were $ 46.7 million compared to $ 433.5 million in Q2'21 and $ 140.0 million in Q3'20 . Adjusted EBITDA was $ 93.9 million on sales of $ 664.3 million in Q3'21 versus $ 611.3 million on sales of $ 1.1 billion in Q2'21 . Notable items in the quarter : • Record Production and Shipments ○ Total lumber production in Q3'21 was 731 million board feet , representing an increase of 15 million board feet quarter - over - quarter and setting an Interfor production record . The U.S. South and U.S. Northwest regions accounted for 411 million board feet and 156 million board feet , respectively , compared to 387 million board feet and 137 million board feet in Q2'21 . Sawmills acquired on July 9 , 2021 contributed to the increased output in both regions . Production in the B.C. region decreased to 164 million board feet from 192 million board feet in Q2'21 due to log supply related downtime at the B.C. Interior sawmills as a result of wildfires . ○ Total lumber shipments were 753 million board feet , or 39 million board feet higher than Q2'21 and 135 million board feet higher than Q3'20 . ○ Interfor's average selling price was $ 744 per mfbm , down $ 675 per mfbm versus Q2'21 . The SYP Composite , Western SPF Composite and KD H - F Stud 2x4 9 ' lumber price benchmarks decreased quarter - over - quarter by US $ 560 , US $ 840 and US $ 1,051 per mfbm to US $ 468 , US $ 479 and US $ 558 per mfbm , respectively . Strong Free Cash Flow Generation ○ Interfor generated $ 72.3 million of cash flow from operations before changes in working capital , or $ 1.15 per share . A decrease in working capital investment added $ 123.9 million of cash flow , primarily related to the collection of trade receivables recorded at higher lumber prices and lower log inventories in B.C. driven by wildfire impacts . о Net debt ended the quarter at $ ( 133.8 ) million , or ( 9.3 ) % of invested capital , resulting in available liquidity of $ 836.3 million . Strategic Capital Investments ○ Capital spending was $ 44.0 million , including $ 26.6 million on high - return discretionary projects . The majority of this discretionary spending was focused on the ongoing multi - year rebuild of the Eatonton , GA sawmill , which will begin ramp - up in Q1'22 . 1 Refer to Adjusted EBITDA in the Non - GAAP Measures section