West Fraser Timber Co. Ltd. (“West Fraser”)

• 2016 Annual Report, page 72
• 2017 Annual Report, pages 110-111

West Fraser is a publicly traded company with shares listed on the Toronto Stock Exchange under the symbol: “WFT”.

West Fraser’s Certificate of Incorporation was filed with the Government of the Province of British Columbia April 29, 1954 and was most recently amended, restated and filed May 1, 2014.

• 2016 Annual Report, pages 6-8
• 2017 Annual Report, pages 10-12

We have 8,600 employees in more than 50 locations including operating facilities and office locations. In the United States, we operate 21 lumber mills including the acquisition of six sawmills and a finger joint mill from the Gilman Companies in 2017.

In Canada, we have 13 lumber mills, 7 engineered wood and panel facilities and 5 pulp and paper mills (two of which are 50% partnerships.)  We hold harvesting licenses representing approximately 7 million hectares of certified sustainably managed forests in Canada (70,000 square kilometres).

In 2016, sales of our products were $4.5 billion. Total capital was $2.6 billion, including $417 million in long-term debt and $2.2 billion in total shareholder equity see the 2016 Annual Report, page 38. For detailed 2016 sales, capacity, production, shipments of our products see the 2016 Annual Report, page 2-3, and 7.

In 2017, sales of our products were $5.1 billion. Total capital was $3.1 billion, including $641 million in long-term debt and $2.7 billion in total shareholder equity see the 2017 Annual Report, page 59. For detailed sales, capacity, production, shipments of our products see the 2017 Annual Report, pages 3-4 and 9.

We work with thousands of local suppliers and partners in every company location.

We purchase logs to supply our mills in the U.S. (100%) and Canada (approximately 20%). The majority of our fibre needs in Canada are obtained from tenures where we have government-granted licence to harvest trees. Our employees in our woodlands divisions plan and gain requisite government approvals for timber harvesting and reforestation (these plans include management of consultation activities and integration of important values such as wildlife, water, environment, culture, recreation, forest health and conservation). Contractors are employed to conduct services such as timber harvesting, tree planting, road construction and trucking related to our forestry activities. Our contractors, partners and suppliers are frequently located geographically close to our mill operations in North America.

The wood products we manufacture are produced in our mill operations primarily by full-time employees who work directly for our company. Some temporary labour and staffing are used in our operational activities and for supporting administrative work. Contracted labour and suppliers in our manufacturing facilities typically provide maintenance, repair and specialized field services for capital projects, ongoing operation of our facilities and transportation of our products to market.

Employees and contractors working at our operating sites are required to meet safety training standards related to their work, have the appropriate personal protective equipment and adhere to site-specific requirements, including environmental standards and regulations. Our most significant and material supply requirement is wood fibre. We also buy chemicals, fuel, electricity, manufactured parts and services, as well as logistic services such as transportation and shipping for domestic and international markets.

Contractors are subject to our Environmental Policy and Safety Policy.

See also the Business Overview in the 2016 Annual Report, pages 7-14 and 2017 Annual Report, pages 8-22.

We believe our business can meet the needs of the present without compromising the ability of future generations to meet their own needs. The versatile wood products we manufacture are long-lasting, renewable and recyclable.  Environmental, social, and governance considerations are built into how we make decisions every day. Our leadership team and our Board of Directors regularly employ a risk assessment process to identify risks to our business and ensure the implementation of appropriate systems to manage these risks to steward safe, modern and efficient operations.

Where we manage forest lands, we practice sustainable forestry. By sustainable, we mean a forest stewardship approach that aims to mimic natural disturbances on the landscape, and which integrates reforestation and the managing, growing, nurturing and harvesting of natural forest cover that incorporates the conservation of soil, air and water quality, carbon, biological diversity, wildlife and aquatic habitats, recreation and aesthetics. We are an independently-audited and certified participant in the Sustainable Forestry Initiative (SFI©), among other voluntary environmental certifications.

See also our website Environmental Policy, Environment and Product Certifications pages.

West Fraser actively participates in numerous forestry sector and local associations. We belong to many local business organizations, such as the chambers of commerce, across our operating communities.

Our Corporate association memberships include:

• Sustainable Forestry Initiative, an independent, nonprofit organization dedicated to promoting sustainable forest management
• The Softwood Lumber Board, established to promote the benefits and uses of softwood lumber products in outdoor, residential and non-residential construction
• National Council for Air & Stream Improvement (NCASI), a non-profit research institute that focuses on environmental topics of interest to the forest products industry
• Canadian Wood Council, represents Canada’s wood products manufacturing industry
• American Wood Council, represents America’s wood products manufacturing industry
• Federal Forest Resource Coalition, a national non-profit trade association dedicated to improving the management of Federal Forests
• Forest Products Association of Canada (FPAC), Canada’s national forest sector association
• FPInnovations, a non-profit member organization which carries out scientific research and technology transfer for the Canadian forest industry.
• fRI Research, a non-profit research organization providing innovative science to support decisions and policy development for land and resource management
• Southern Forest Products Association, focused on the Southern Pine lumber industry and promoting SYP products in domestic and international markets
• Structural Building Components Association, a trade association representing manufacturers of structural building components.
• Treated Wood Council, a trade association for companies producing pressure-treated wood products

Regional Forestry Association Memberships include:

• Council of Forest Industries (COFI)
• Alberta Forest Products Association (AFPA)
• Arkansas Forestry Association
• Louisiana Forestry Association
• Texas Forestry Association

External Factors Affecting West Fraser’s Business

• 2016 Annual Report, pages 13-14, and Management’s Discussion & Analysis pages 23-42
• 2017 Annual Report, pages 12-16, and Management’s Discussion & Analysis pages 34-68