Western Forest Products : Investor Presentation – November 2020

INVESTOR PRESENTATION

November 2020

TSX:WEF

Forward Looking Statements and Non-GAAP Financial Measures

All financial references are expressed in C$ unless otherwise noted.

This presentation contains statements and estimates that may constitute forward-looking statements under the applicable securities laws. Readers are cautioned against placing undue reliance on forward-looking statements. All statements herein, other than statements of historical fact, may be forward-looking statements and can be identified by the use of words such as "will", "estimate", "anticipate", "expect", "should", "may", "pursue", "explore" and similar references to future periods.

Forward-looking statements in this presentation include, but are not limited to, statements relating to our current intent, belief or expectation with respect to: domestic and international market conditions, demands and growth; economic conditions; our growth, marketing, product, wholesale, operational and capital allocation plans and strategies including, but not limited to, our dividend plan; our expected operating results; our competitive position and expectations regarding future competition; fibre availability and regulatory developments; the impact of the COVID-19 pandemic; the anticipated closing of the transaction with Huumiis Ventures Limited Partnership and the sale of additional incremental ownership interest in TFL 44 LP and Alberni Pacific Limited Partnership in the future.

Although such statements reflect management's current reasonable beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, there can be no assurance that forward-looking statements are accurate, and actual results and performance may materially vary. Many factors could cause our actual results or performance to be materially different including: economic and financial conditions, international demand for forest products, competition and selling prices, international trade disputes, changes in foreign currency exchange rates, labour disputes and disruptions, natural disasters, relations with First Nations groups, the availability of fibre and allowable annual cut, developments and changes in laws and regulations affecting the Company or the forestry industry, changes in the price of key materials for our products, changes in opportunities, future developments in the COVID-19 pandemic and other factors discussed in the Company's annual MD&A, which is available on our website at www.westernforest.com. The foregoing list is not exhaustive, as other factors could adversely affect our actual results and performance. Forward-looking statements are based only on information currently available to us and refer only as of the date hereof. Except as required by law, we undertake no obligation to update forward-looking statements.

During the course of this presentation, certain non-GAAP financial information will be presented. Definitions and reconciliation of terms can be found in the Company's annual and quarterly MD&A for Western Forest Products Inc. (the "Company").

1

Section 1:

Company Snapshot

Investment Highlights

Margin-focused strategy with exposure to growing lumber demand

High-value, diverse products serving global markets

Business of scale and leader in our key markets

Strong financial position and liquidity

Specialty product focus provides greater earnings stability compared to commodity lumber peers

Superior timber asset base and secure fibre supply Committed to enhancing and growing shareholder value

Western is well-positioned to capitalize on improving market fundamentals	3

Operations Snapshot

 Margin-focused, specialty lumber

company

- Leading cedar lumber, timbers and

Japan square manufacturer in

North America

 Serve global markets from Coastal

B.C. and Washington

 Expanded operations into the U.S.

Pacific Northwest in 2018 and 2019

Lumber capacity in excess of one

Sawmill

Remanufacturing

Distribution Centre

British Columbia

Vancouver (Head Office)

Arlington (acquired 2018)

Washington

	billion board feet at eight sawmills
	Four remanufacturing facilities and
	a distribution centre

Columbia Vista (acquired 2019)

Canada

U.S.

See Appendix for detailed listing of sawmills and remanufacturing facilities

Strategically located manufacturing locations with secure fibre supply	4

Financial Snapshot

1. • 5-Yearaverage annual revenue1 of $1.1 billion
   • 5-Yearaverage annual EBITDA1 of $112 million
   • Market cap. of ~$370 million2
   • Well capitalized balance sheet
   • • Net debt to capitalization of 20% (at end of Q3-20)
     • $127.9 million in available liquidity (at end of Q3-20)
2. 5-yearaverage from 2015 to 2019, including strike impacted 2019
3. Based on closing share price of $0.98 on November 25, 2020

Annual Sales by Product1

Specialty Lumber	6%
18%
Commodity Lumber	$1.1
Logs
billion	58%
By-products	18%

58%

Specialty

Lumber

Annual Sales by Geography1

Canada		17%
United States	24%
China		$1.1	13%
Japan		billion	7%
Other			39%
Final destination		2%
Europe	of a portion of	37%		International
Canadian sales
	are to international

markets

Strong financial performance and well capitalized balance sheet	5

Executing on Long-term Strategic Priorities

Explore Opportunities

• Pursue margin-focused business opportunities and acquisitions
• Grow wholesale lumber business
• Growth opportunities in the U.S. Pacific Northwest and specialty wood products

Grow the Base

• Optimize operations to improve margins
• Targeted, high-margin products of scale to selected customers
• Non-capitalmargin improvement and growth initiatives

Strengthen Foundation

• Strategic capital investments
• Invest in people and systems
• Mutually beneficial relationships with First Nations

Focus on growing long-term shareholder value	6

Section 2:

Company Updates

Business Update

COVID-19

Balance

Sheet and

Liquidity

Additional

Sources of

Potential

Liquidity

• Implemented strict health and safety protocols across our business
• Taken prudent measures to protect our balance sheet and liquidity
• Will continue to align our production volumes to match market demand while first and foremost ensuring the health and safety of our employees
• Designated as an essential industry
• Net debt at the end of Q3-20 was $119.4 million (net debt to capitalization ratio: 20%)
• Available liquidity of $127.9 million at the end of Q3-20
• $250 million credit facility; matures August 2022
• • Includes an accordion feature that allows Western to increase the aggregate amount available to $350 million, subject to lender approval
• TFL 44 LP sale to the Huumiis Ventures Limited Partnership
• Other non-core assets (Orca quarry, private timberlands, non-core lands)
• First Nations partnerships

Liquidity and debt reduction remains a key priority and near-term focus and we
continue to explore all opportunities to strengthen our balance sheet	8

Strengthen the Foundation: Strategic Partnerships with Huu-ay-aht First Nations

 In March 2019, Western completed the sale of a 7%	TFL 44
ownership interest in TFL 44 LP to Huumiis Ventures	Port
Limited Partnership ("HVLP")1 for $7.3 million	Alberni
Alberni Pacific
- TFL 44 LP consists of certain assets and liabilities of	Division Sawmill
TFL 44
Western's Port Alberni Forest Operation, including TFL 44
 In March 2020, Western announced the sale of an	TFL 44
incremental 44% ownership interest in TFL 44 LP, and	Ucluelet
a 7% ownership interest in a newly formed LP that will	Bamfield
own the Alberni Pacific Division Sawmill, to HVLP for
$36.2 million
- TFL 44 LP ownership at closing: HVLP 51% | Western 49%	TFL 44 LP Allowable Annual Cut: 782,482 m3
- Western may sell to other area First Nations up to a further
26% ownership interest in TFL 44 LP, post closing	Vancouver
- Long-term log agreement to continue to supply Western's
Island
coastal manufacturing operations	B.C.
- Closing is subject to customary closing conditions,	Vancouver
financing, and certain third-party consents	Victoria
(1) Limited partnership beneficially owned by Huu-ay-aht First Nations

Continue to explore mutually beneficial relationships with First Nations	9

Growing the Business:

Strategic Marketing and Branding Initiatives

• Increase our access to North American Home Centre and Pro- Dealer sales channels
• • Greater access to the growing repair and remodel lumber segment
• Working with our customers and investing in marketing to drive demand
• • Specialty branding and marketing initiative opportunities for cedar products
• Estimate that 40% of cedar is consumed in the Home Centre segment
• • Growth opportunity for WFP
• New product branding

Western Red Cedar Branding Initiatives

 An exclusive Home Centre brand covering all products

 Targeting end-users

and contractors

 Appearance grade residential products (decking, siding, outdoor living)

 Targeting end-users through the distribution and pro-dealer channels

 4x6 and larger products marketed to residential and industrial markets

 Targeting industrial and distribution customers

Growth opportunity for targeted specialty products for our customers	10

Growing the Business:

Wholesale Lumber Business Unit

• Form strategic agreements with global suppliers, enabling WFP to broaden the scope of our specialty products offerings
• Will enable WFP to offer an expanded product line that delivers greater value to our customers
• • Will make our existing business and product offerings stronger
• New products will originate in the U.S., Asia, Europe and Canada
• • Comprised of finished products, as well as lumber products that could be further processed at Arlington or with other strategic remanufacturing partners
• Leverage our Arlington centralized warehousing and distribution centre to effectively service our selected U.S. customers
• In 2019, more than doubled wholesale lumber shipments to 34 million board feet compared to 2018

Growing global supply of targeted specialty products for our selected customers	11

Growing the Business: Acquisition of Columbia Vista

• Acquired February 2019 for $37.7 million, including working capital
• Located in Vancouver, Washington
• Focuses production on Douglas fir specialty products for Japanese and U.S. markets
• • Complements our B.C. hemlock business into Japan
• Annual lumber production: ~60 million board feet
• Columbia Vista's former owner working with Western in a consulting capacity

Sawmill and log yard

Remanufacturing: Kilns and planer

Growing our operations in the U.S. Pacific Northwest	12

Growing the Business: Arlington, Washington Lumber Distribution and Processing Centre

	 Acquired January 2018 for $11.6 million
Overview	 18 acre distribution and processing facility
 170,000 square feet covered storage
	 Rail spur on site serviced by BNSF
	 Centralized warehousing and distribution
		near the high value U.S. west coast corridor
Fits With Our		Increase production of targeted specialty
Lumber Sales		products and expanded finishing capacity
Strategy		Increase margins by growing the sale of
		finished products, closer to the end
		customer
	 Site and infrastructure improvements
Capital		completed in Q2-2018, enabling distribution
	activity to commence from the site
Improvements	 Equipment upgrades completed in Q1-
		2019; secondary processing commenced

	Covered Storage				Packager

Rail Distribution

Truck Distribution

Arlington creates centralized distribution and growth in finished products	13

2019 Sustainability Report

Environmental, Social and Governance Commitment

• Expanded 2nd annual sustainability report based on feedback from stakeholders
• Highlights Western's commitment to:
• • Health and safety for our employees, contractors and communities in which we operate
  • Developing and manufacturing sustainable products
  • Strong governance and diversity
  • Sustainable forestry management
  • Commitment to working with our employees, First Nations, communities and stakeholders
• Will look to expand on carbon lifecycle modeling in future reports

Western is committed to defining a higher standard on ESG	14

Section 3:

Company Overview

Margin Strategy / Fibre and Processing Flow Chart

Standing Timber

Log Availability

					Allowable
Mix	Hemlock /				Annual Cut2
			(AAC) For Logs
Unique Species	Balsam
			~6.0 million m3
Western Red
and	Cedar				Log Purchases1
Diverse	Douglas Fir				(~1.1 million m3)

Yellow

Cedar

Spruce

Raw Inputs

1. 5-yearaverage from 2015 to 2019, including strike impacted 2019
2. As of December 31, 2019

Margin Decision

External Log

Sales

~34% of Logs Sold

(by volume)1

Internal Log

Consumption

~66% of Logs

Processed at WFP

sawmills and

custom cut division1

Market Segments

Log Markets

Domestic Log

Markets

Export Log

Markets

Pulp Log

Markets

Lumber Segments

Western Red

Cedar

Japan Specialty

Niche

Commodity

Finished

Products / Sales

Timber resource is directed to highest margin opportunity	16

Log Markets Determine Margin Decision

External Log Sales

Log End Market		Description	Primary Target
	Geographies
	 Western's sawlogs consumed by
WFP		internal manufacturing operations
	Internal log supply supplemented by
Sawmills
	open market purchases to maximize
		margin
	 Includes sawlogs, peelers (for
Domestic		engineered wood applications) and
	shingle logs sold through contractual
		commitments and open market
		transactions
	 Volumes committed under long-term
Pulp Logs		fibre supply agreements
	Commitments met through internal log
		supply, supply contracts and open
		market pulp log purchases
	 Represents log sorts produced in
Export		excess of internal mill requirements
	Historically command premium prices
		due to strong demand
		Transportation optimization

Logs by Value

5-Year Average1

29%

External

Log

19% Sales

$636 3%

71% million(2) 7%

Logs by Volume
5-Year Average1	34%
	External
	Log
19%	Sales

66%	5.4	8%
million m3
	7%

1. 5-yearaverage (2015 to 2019), including strike impacted 2019, based on total external log sales and internal log consumption, including purchased logs. Internal transfer values based on Vancouver Log Market prices
2. Net of freight and fee in lieu

Directing log volume to highest margin opportunity	17

Manufacturing and Sales

Log	Marketing	Manufacturing	Sales
Supply	Strategy	Strategy	Strategy

Log Cutting

Patterns

Log Dimension

Product

Group

Lumber

Product Type

Log diameter and margin determines lumber products manufactured

5 - 11"	11 - 18"	16 - 22"	20 - 30"	24"+
Narrow	Wide	Squares	Timbers	Grade &
Dimension	Dimension	Appearance

Commodity	Commodity /	Japan	Niche /	Niche /
Western Red Cedar	Western Red Cedar	Western Red Cedar

Flexible manufacturing platform presents unique opportunity to create margin	18

Diversified Lumber Product Offering

	Lumber Products		Description	Primary Target
			Geographies
	Western	 Consumer-orientated products
		Premier softwood for external
	Red
		applications
	Cedar			Global
Products		Naturally durable
Japan		specific end uses
			Specialized products for
Specialty	Specialty		Requires unique and rigorous
		quality standards
			Specialty products and
	Niche		markets
		Focused on appearance		Asia Europe
			grades, value-add products

Commodity	 Traditional dimension lumber
and developing grades

(1) 5-year average from 2015 to 2019, including strike impacted 2019

Lumber by Value

5-Year Average1

23%

$818 44%

12% million

21%

77%

Specialty

Lumber by Volume

5-Year Average1

27%

45% 817

MMfbm

17%

11%

55%

Specialty

Allows Western to profitably service multiple markets throughout the cycle	19

Sample Lumber Products

Diverse product offering manufactured from sustainably harvested forest profile	20

Specialty Product Focus

 Approximately 77% of lumber		Relative Lumber Price Change Since Q1-2015
revenue is generated from		180%
non-commodity products		140%																																									WFP Strike
																																										Impacted (3)
 Significant price premium to		100%
commodity lumber		60%
 More stable margins through		20%
the cycle vs. commodity peers		Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
		-20%
 Product / market diversity and		2015	2016	2017	2018	2019	2020
									WFP Average Lumber Price							Commodity Lumber Price(1)
global exposure provide		Quarterly Lumber EBITDA Margins Comparison
opportunities to maximize
margin		30%																																										Impacted (3)
		40%																																										WFP Strike
 Cedar, niche and commodity		20%
	10%
grades will benefit from U.S.		0%
housing recovery and global		-10%
	-20%
demand		Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
		-30%
		2015	2016	2017	2018		2019	2020
														Peer Group Range(2)					Western Forest Products

1. KD Western SPF 2x4, #2&Btr; converted from US$ to C$
2. High and low EBITDA margin range of West Fraser, Canfor and Conifex lumber segments and consolidated results of Interfor
3. Q3-19,Q4-19 and Q1-20 are not comparable for Western due to the strike

Focus on specialty products delivered 39 quarters of positive EBITDA over 10 years	21

Seasonality of the Business

 Weather (snow pack, heat)	Harvest Volume1		Closing Log Inventory1
and daylight can impact	(000 m3)					(000 m3)
		1,282
harvest volumes and costs
	1,072					1,059		1,091
 Inventory levels can fluctuate			1,015			997
				964		958
through the year, impacting
working capital
 Seasonal market demand	Q1	Q2		Q3	Q4	Q1	Q2	Q3	Q4
Lumber Production &		Increase (Decrease) in
can impact lumber
Shipments1				Working Capital1
production	(MMfbm)		228		($ millions)	$16
			222 220
 Typically higher lumber sales			218	219				$10
volumes in Q2 and Q3 when
213		214
North American construction	209						($2)
activity is at its peak									($12)
	Q1	Q2		Q3	Q4
			Production		Shipments		Q1	Q2	Q3	Q4

(1) Average of last 5-years (2015 to 2019) excluding strike impacted Q3-19 and Q4-19

Seasonal influences impact operations and sales	22

Strategic Capital Investments

• Initiatives focused on:
• • Reducing costs
  • Increasing efficiency
  • Increasing production of targeted products
  • Growing production
• Applying proven technology in coastal operations

	Duke Point Sawmill				Duke Point Planer				Duke Point Planer: Auto grading

	Chemainus: Timber grading station				Chemainus: Timber deck

	Saltair Sawmill				Saltair Sawmill				Centralized, automated saw filing

Capital projects expected to generate a return in excess of 20%	23

Competitive Strengths

1

2

Flexible manufacturing platform that can target a variety of global markets

Sustainable, diverse timber base providing a unique range of products

1. High margin specialty products for the U.S. market - cedar, timbers, moulding & millwork, industrial applications
2. Customer of choice for other coastal log producers due to competitive advantages of scale, financial strength and proximity
3. Low cost access to ocean shipping (break bulk, container & barge) to global markets
4. Warehousing and distribution facility to service U.S. customers in high value U.S. west coast corridor

Western is a compelling pure-play, solid wood products investment	24

How is WFP Different From its Public Lumber Peers

1 Pure play lumber and log, specialty company

2 Cedar and specialty products focused with commodity lumber component

• Peers focused on commodity lumber with some specialty products
• Significantly higher average product pricing versus commodity lumber peers

3 No mountain pine beetle impacted fibre

4 No historical rail or truck transportation issues; ocean going advantage

• WFP uses the BNSF railway line to ship products

25

Appendix

Supplemental Materials

Western's Business to Benefit from Global Supply and Demand Factors

Factors	Highly Attractive Underlying Supply / Demand Dynamics

U.S. Economic

1 and Housing

Market Growth

• Increasing new home construction and robust repair and remodel activity
• Transition from supply driven to demand driven market expected to result in improved pricing for wood products

Strong

Underlying

Demand

Drivers for

Wood

Products

Continued

2 Growth

in China

• Economic growth and urbanization
• Consumption of wood will increase
• Limited domestic fibre supply; increasing need for imports

Reduced

Supply

of Fibre

3	U.S. Supply		Repatriation of U.S. lumber exports back to U.S. market creates
Exit from		opportunity for Western
	Japan Market		Increase consumption of lumber

	Canadian		Mountain pine beetle to negatively impact B.C. interior fibre supply
4	Fibre Supply
	and lead to a reduction in B.C. interior lumber production
	Reduction

27

1	Demand Drivers: U.S. Economic and Housing
Market Growth
U.S. Repair & Remodel Expenditures

Expenditures (US$ billions)

200
150
100																				$167
	$148	$137										$138	$158	$147	$137	$152	$155	$159	$164
$128	$130	$125	$115	$117	$122	$115	$116	$122	$130
50
0
2004A	2005A	2006A	2007A	2008A	2009A	2010A	2011A	2012A	2013A	2014A	2015A	2016A	2017A	2018A	2019A	2020E	2021E	2022E	2023E	2024E

U.S. Housing Starts

	2.5
(millions)	2.0									50-Year Average: 1.4MM
Starts	1.5
Housing	1.0	1.95	2.07	1.81																1.58	1.60	1.68
																	1.49
				1.34								1.11	1.18	1.21	1.25	1.30	1.36
0.5				0.90				0.78	0.93	1.00
					0.55	0.59	0.61
	0.0	2004A	2005A	2006A	2007A	2008A	2009A	2010A	2011A	2012A	2013A	2014A	2015A	2016A	2017A	2018A	2019A	2020E	2021E	2022E	2023E	2024E

Source: Forest Economic Advisors (November 2020)

28

Demand Drivers: Supply / Demand Dynamics

1 Will Positively Benefit the Industry

• Growing demand from U.S. and Asian markets and reduced supply from traditional sources is expected to benefit the industry long-term

Housing Starts (North American and Lumber Export Equivalent) vs. Western SPF Lumber Pricing

Housing Starts (MM)

3.5

550

3.0

Average NA Housing Starts

(since 1990) = 1.5MM

2.5

450

2.0

350

US$

per

1.5

Mfbm

250

1.0

150

0.5

0.0

2005A

2006A

2007A

2008A

2009A

2010A

2011A

2012A

2013A

2014A

2015A

2016A

2017A

2018A

2019A

2020E

2021E

2022E

2023E

50

2004A

2024E

U.S. Housing Starts

Canada Housing Starts

NA Lumber Exports (Housing Starts Equivalent)

KD SPF 2x4 2+Btr (US$) (Actual)

KD SPF 2x4 2+Btr (US$) (FEA Projections)

Source: Forest Economic Advisors (November 2020); Western Forest Products	29

Demand Drivers: China Growth Has Changed

2 Global Wood Products Demand Dynamics

• A government commitment to housing and continued positive economic growth should support long-term demand for logs and lumber in China
• A deficit of domestic fibre will require China to rely on imports
• Rising wealth / urbanization trends expected to increase demand for lumber

China Log Imports

China Lumber Imports

million m³

70

60

50

40

30

20

10

0

'09A

'10A

'11A

'12A

'13A

'14A

'15A

'16A

'17A

'18A

'19A

LTM

Russia

New Zealand

North America

Others

Sep-20

million m³

40

35

30

25

20

15

10

5

0

'10A

'11A

'12A

'13A

'14A

'15A

'16A

'17A

'18A

'19A

LTM

'09A

Russia

New Zealand

North America

Others

Sep-20

Source: Forest Economic Advisors (November 2020)	30

Demand Drivers: U.S. Supply Exit From Japan Will

3 Create Market Opportunity

• Japan continues to be a major source of demand for wood products and lumber from North America
• After the global recession in 2008, certain suppliers in the U.S. West increased export activities to Japan due to a lack of U.S. domestic demand
• • As North American housing markets recovered, much of this U.S. supply has been diverted back to local U.S. markets, creating a supply gap in Japan and opportunity for Western's Japan products

Japanese Lumber Imports of Canadian and U.S. Douglas Fir and Hemlock

		~100 million board feet opportunity to
	1,400	replace non-SPF U.S. exports to Japan
m3)	1,200
(million	1,000
Imports	800
600
Lumber	400
	200
	0

2009A

2010A

2011A

2012A

2013A

2014A

2015A

2016A

2017A

2018A

2019A

LTM

U.S. Hem

U.S. Douglas Fir

CDN Hem

CDN Douglas Fir

Sep-20

Japanese Imports of Canadian and U.S. Lumber and Japanese Housing Starts

3,000	1.4
2,500	1.2
2,000	1.0
	0.8
1,500
	0.6
1,000	0.4
(millionImportsLumberm3)	(millions)StartsHousing
500	0.2
0	0.0

2009A

2010A

2011A

2012A

2013A

2014A

2015A

2016A

2017A

2018A

2019A

LTM

Sep-20

Softwood Lumber Imports from U.S.

Softwood Lumber Imports from Canada

Japan Housing Starts

Source: Japan Ministry of Land, Infrastructure and Transport; The Trade Statistics, Japan Ministry of Finance; Japan Lumber Importers' Association (November 2020)	31

4 Supply Drivers: B.C. Interior Fibre Supply Reduction Will Lead to Reduced Lumber Production

B.C. Interior Allowable Annual Cut ("AAC")

	70
m3)	60
(million	50		64.1	65.7	68.0	67.0	66.9	66.4
	62.2	61.5	60.8	61.3	60.7	62.1
						56.5
AAC	40	55.4
												50.3	50.3	49.9	49.5	49.0	48.1	46.9	46.8
	30	2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

B.C. Interior Lumber Production

	18
Feet
Board	12
	14.3	14.9	15.1
Billion	12.8	13.9
								11.7	11.5
			10.6		10.4	10.9	11.2	11.0	11.4	11.1
				10.0			9.0	9.3	9.4
											8.8		8.7
					8.6									7.3
	6
	2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

Source: Forest Economic Advisors (November 2020)

Mountain Pine Beetle epidemic and lower AAC in the B.C. Interior
are expected to significantly reduce lumber production	32

Historical Financial Snapshot - Annual

Revenue ($ millions)

							Strike
				$1,187	$1,143	$1,197	Impacted (1)
			$1,037
	$925	$978	$1,082
$854					$808
						$726

2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

Lumber Shipments (MMfbm)

							Strike
894	895	909	883	935	840	880	Impacted (1)
811
							548
							425

2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

Adjusted EBITDA ($ millions)

		$129			$148	$153	$144	Strike
		$109	$117				Impacted (1)
$62	$51
								$28
								($2)
2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

Adjusted EBITDA Margin %

		13.2%			12.5%	13.3%	12.0%	Strike
			10.5% 10.8%		Impacted (1)
7.2%	5.5%								3.8%
								-0.2%
2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

(1) All of Western's timberlands and most of our B.C. based manufacturing divisions were impacted by a strike by the United Steelworkers Local 1-1937 ("USW"), which commenced on
July 1st, 2019. On February 15th, 2020, the USW members ratified a new 5-year collective agreement, which is effective as of June 15th, 2019 and expires on June 14th, 2024, ending	33
the strike

Historical Financial Snapshot - Last 8 Quarters

Revenue ($ millions)

	$310	Strike
$285	Impacted (1)	$291
$276
			$256
		$142
		$80	$99
Q4-18	Q1-19Q2-19	Q3-19Q4-19Q1-20Q2-20Q3-20

Lumber Shipments (MMfbm)

Strike

218211 Impacted (1)

203

Adjusted EBITDA ($ millions)

Strike

Impacted (1)

$18 $18 $15

($17) ($18) ($17) Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20

Adjusted EBITDA Margin %

Strike

Impacted (1)

6.3% 6.6% 4.9%

$30 $34

Q2-20Q3-20

11.5% 11.6%

90

44

152 165

64

-11.7%

-17.6%

-22.6%

Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20

Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20

Q2-20Q3-20

(1) All of Western's timberlands and most of our B.C. based manufacturing divisions were impacted by a strike by the United Steelworkers Local 1-1937 ("USW"), which commenced on
July 1st, 2019. On February 15th, 2020, the USW members ratified a new 5-year collective agreement, which is effective as of June 15th, 2019 and expires on June 14th, 2024, ending	34
the strike

Historical Cash Flow, Capital Allocation and Debt

Cash Flow from Operations1 ($ millions)

					$128	$134	$118
		$111
			$99				Strike
			$87
							Impacted (3)
$44	$58
									$27
								$11
2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

Capex2 ($ millions)

							$84
		$59	$50	$62	$56	$55
							$37
	$32
$19
								$12
2011	2012	2013	2014	2015	2016	2017	2018	2019	LTM
									Q3-20

Net Debt / (Cash) ($ millions)		Dividends4 & Share Repurchases ($ millions)
		$119								$116
	$111
$83	$78
$52	$54	Substantial			$100									$60	$50
$15	$15	Issuer Bid											$34	$25
										$31	$32		$32	$16	$17
												$31	$32		$32	$32	$34	$34
	($2)			n/a	n/a	$16		$17
				--			--
	($35)	2011			2012	2013 2014	2015	2016	2017	2018	2019 LTM
2011 2012 2013	2014 2015 2016 2017 2018 2019	Q3-20						Dividends			Share Repurchases		Q3-20

1. After changes in non-cash working capital
2. Additions to property, plant and equipment; excludes acquisition capex
3. All of Western's timberlands and most of our B.C. based manufacturing divisions were impacted by a strike by the United Steelworkers Local 1-1937 ("USW"), which commenced on July 1st, 2019. On February 15th, 2020, the USW members ratified a new 5-year collective agreement, which is effective as of June 15th, 2019 and expires on June 14th, 2024, ending

the strike	35
(4) Dividend suspended in May 2020; the Board will continue to review the Company's dividend on a quarterly basis

Sawmills and Remanufacturing Facilities

Sawmills

			Log Diameter		Production		2018 Production Mix4
	Sawmill	Location	Capacity1
					Douglas	Yellow
	Focus	20192	2018	WRC3	Hemlock
									Fir	Cedar
	Ladysmith	Ladysmith, BC	Small	90	52	67	--	100%	--	--
	Cowichan Bay	Duncan, BC	Medium	215	64	177	13%	87%	--	--
	Saltair	Ladysmith, BC	Medium	240	96	214	22%	61%	17%	--
	Alberni Pacific	Port Alberni, BC	Medium to Large	175	44	106	--	100%	--	--
	Duke Point	Nanaimo, BC	Medium to Large	130	64	127	3%	91%	6%	--
	Chemainus	Chemainus, BC	Medium to Large	130	47	99	100%	--	--	--
	Somass5	Port Alberni, BC	Medium to Large	90	--	--	--	--	--	--
	Columbia Vista	Vancouver, WA	Medium to Large	80	576	n/a6	--	--	100%	--
	Custom Cut	Multiple	Varies	n/a	67	74	27%	--	30%	43%
	Sawmill Total			1,150	491	864	22%	66%	8%	4%

Remanufacturing and Distribution

Canada	United States
Value Added Division - Chemainus, BC	Arlington Distribution and Processing Centre - Arlington, WA
Duke Point Planer - Nanaimo, BC	Columbia Vista Sawmill, Planer and Kilns - Vancouver, WA

1. Based on two shifts and 250 operating days, except Chemainus and Duke Point at three shifts
2. All of Western's timberlands and most of our B.C. based manufacturing divisions were impacted by a strike by the United Steelworkers Local 1-1937 ("USW"), which commenced on July 1st, 2019. On February 15th, 2020, the USW members ratified a new 5-year collective agreement, which is effective as of June 15th, 2019 and expires on June 14th, 2024, ending the strike
3. Western red cedar
4. 2018 data shown due to the strike impacting 2019; data for 2019 is available in our 2019 Annual Information Form
5. Somass was indefinitely curtailed in July 2017 due to a lack of log supply to operate the mill efficiently
6. Acquired February 1, 2019

36

Analyst Coverage

Analyst Firm	Analyst Name	Contact

CIBC World Markets	Hamir Patel	•	604 331-3047
•	[e-mail]

Raymond James	Daryl Swetlishoff	•	604 659-8246
•	[e-mail]

RBC Capital Markets	Paul Quinn	•	604 257-7048
•	[e-mail]

Scotiabank	Benoit Laprade	•	514 287-3627
•	[e-mail]

TD Securities	Sean Steuart	•	416 308-3399
•	[e-mail]

37

Investor Relations Contacts

These materials have been prepared by Management of the Company. No regulatory authority has approved or disapproved of the contents of these materials. These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company and shall not constitute an offer, solicitation or sale of the Company's securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Securities of the Company may not be offered or sold in the United States absent their prior registration or qualification or an applicable exemption from the applicable registration or qualification requirements.

Stephen Williams	Glen Nontell
Executive Vice President & Chief Financial Officer	VP, Corporate Development
604-648-4572	604-648-4630
[e-mail]	[e-mail]

38