AFA Annual Meeting Presentation

1. Investing in Arkansas ……… and
the US South
Arkansas Forestry Association 71st Annual Meeting
October 5, 2016
Todd Mullis
Vice President
US South Operations

2. 2
This presentation contains information and statements that are forward-
looking in nature, including, but not limited to, statements containing the
words “will”, “is expected”, “forecast”, “annualized”, “target” and similar
expressions. Such statements involve known and unknown risks and
uncertainties that may cause Interfor’s actual results to be materially
different from those expressed or implied by those forward-looking
statements. Such risks and uncertainties include, among others: price
volatility; competition; availability and cost of log supply; natural or man-
made disasters; foreign currency exchange fluctuations; changes in
government regulation; export and other trade barriers; environmental and
community matters; labour disruptions; and other factors referenced herein
and in Interfor’s current Annual Report and Management’s Discussion &
Analysis, both available on www.sedar.com. The forward-looking
information and statements contained in this presentation are based on
Interfor’s current expectations and beliefs. Readers are cautioned not to
place undue reliance on forward-looking information or statements. Interfor
undertakes no obligation to update such forward-looking information or
statements, except where required by law.
FORWARD-LOOKING INFORMATION
2

3. 3
• Interfor’s Platform
• North American Lumber Log Supply
• US Lumber Demand
• The Future of Southern Yellow Pine
• The Road Ahead
ITEMS FOR DISCUSSION
3

4. INTERFOR’S FOUR REGIONS
4

5. 5
March 2013
Rayonier
Acquisition
• Baxley
• Eatonton
• Swainsboro
July 2013
Keadle
Acquisition
• Thomaston
Sept 2013
Swainsboro
second shift
March 2014
Tolleson
Acquisition
• Perry
• Preston
Jan 2014
Baxley
second shift
Nov 2014
PTC office
opening
March 2015
Simpson
Acquisition
• Georgetown
• Meldrim
June 2015
Price
Acquisition
• Monticello
2013 2014 2015
• 5 transactions valued at over $400M
• $55M additional investment to date
• Nine operations in three states
• Over 1,100 employees
• 1.3 Bbf of production capacity
• Over 5M tons of logs consumed
From Zero to:
INTERFOR US SOUTH — TIMELINE

6. 6
INTERFOR BELIEVES IN AND IS
COMMITTED TO THE US SOUTH

7. 7
LUMBER FOCUS ONLY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Interfor
Lumber Panels Engineered Products Pulp, Paper & Fibers
% of
Sales
Other Major Lumber Producers

8. 8
Doug
Fir/Larch
30%
Hem-Fir
10%
Spruce-Pine-Fir
11%
Southern
Yellow Pine
34%
Cedar
11%
Lodge Pole/
Ponderosa Pine
4%
INTERFOR’S BROAD RANGE OF PRODUCTS
(1) By value for 2015
Lumber Sales By Species 1
Western Dimension
Cedar
Southern Yellow Pine
Lodge Pole Pine

9. 9
Canada
8%
China/Tw/HK
5%
Other
4%
Japan
10%
USA
73%
NORTH AMERICAN DRIVEN BUSINESS;
BUT DIVERSE SET OF MARKETS SERVED
(1) By value for 2015
Lumber Sales By Market 1

10. NORTH AMERICAN LUMBER SUPPLY
LOG
10

11. 11
BC INTERIOR OVERVIEW
Cumulative Percentage of
Merchantable Forest Volume Killed
Since 1999
Very High (>45%)
High (31-45%)
Moderate (16-30%)
Low (<16%)
None (0%)
Adams Lake
Castlegar
Grand Forks
Source: BC Ministry of Forests

12. 12
Source: FLNRO
AAC: Allowable Annual Cut
-
10
20
30
40
50
60
70
1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
AAC m3/yrMillion m3
BC INTERIOR HARVEST WILL DROP

13. 13
US South Timberland Ownership
THE MERITS OF PRIVATE LAND SUPPLY
• Positive “Pro Business”
environment.
• Timberland is an
attractive asset class.
• Significant standing
timber inventory.
• Abundant commercially
harvestable pine habitat.
NIPF
60%
Public
13%
Corporate
(REIT,
TIMO)
27%
Source: Forisk – 2015 Q3

14. 141414
LOG INVENTORY IS GROWING IN US SOUTH
Source: Forisk Quarterly Q3-2015 Forecast
-
0.5
1.0
1.5
2.0
2.5
3.0
02 04 06 08 10 12 14 16 18 20 22 24 26 28 30
GradeInventory(Billiontons)
Historic Forisk Base Case Forecast

15. UNITED STATES LUMBER DEMAND
15

16. 16
US HOUSING STARTS WILL GROW
16
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
Housing Starts
Underlying Demand
Pent-Up Demand
Millions
Source: FEA Q4-2015 Forecast; Published December 2015

17. 17
DEMAND ON NORTH AMERICAN MILLS
WILL BE DRIVEN UPWARD
17
BBF
Source: FEA Q4-2015 Forecast; Published December 2015
20
25
30
35
40
45
50
55
60
65
70
75
80
85
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
US Canada Net Exports

18. THE FUTURE OF SOUTHERN YELLOW PINE
18

19. 19
Source: FEA – 2015 Q3
SOUTH LEADS SINGLE FAMILY HOUSING
STARTS
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2013 2014 2015 2016 2017 2018 2019 2020
Northeast North Central South West
millions

20. 202020
PINE GRADE INVENTORY & HOUSING STARTS
Source: Forisk Quarterly Q3-2015 Forecast
0.0
0.5
1.0
1.5
2.0
2.5
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
U.S.HousingStarts(millions)
U.S.SouthPineGradeInventory(thousands)
Base Housing Low Housing Historic Base Low

21. 21
SOUTHERN YELLOW PINE: THE ROAD AHEAD
• 2016 North American lumber demand dynamics
have been positive.
• Domestic consumption is forecasted to increase
significantly over the next five years….the US
South will lead the way.
• Log supply constraints will continue in Canada,
but log inventory is growing in the US South.
• The US South is well-positioned and remains a
good investment opportunity.

22. 22
THANK YOU