Columbia Forest Products

Plywood Division

• Eight Manufacturing Plants– Largest HWPW footprint in North America– Redundant capabilities; close to market centers

• Multi-Channel Path to Market– Distributors, OEM’s, Home Centers

• In-field sales effort– Intimate with customers– Active with architectural

community

Veneer Division

• Three veneer mills– Largest capacity in North America • 4th mill can be re-activated

• Rotary cut decorative hardwood veneer– Supplies Columbia’s hwpw mills– Sells directly to other hwpw, door and furniture

manufacturers

• Emphasis on – Birch, Red Oak, Maple

Columbia is Unique

• Leading market shares in key products– 60% Share in decorative rotary veneer– 37% Share of domestic hardwood plywood

• Innovative products & technology– PureBond® formaldehyde-free technology– MPX® smooth core veneer

• Marketing strategies– Business to Business & Business to Consumer– Voice of the Customer– Differentiation through Innovation

Columbia is Unique:

Product Awards & Recognition

• Gifford Pinchot Award winner• Rainforest Alliance “Sustainable Standard Setter”• Home Depot Vendor of the Year• EPA’s Presidential Green Chemistry Award

– Greener Synthetic Pathway category

• MetaFore Innovation Award• Sustainable Industries

– Top 10 Green Building Product

• BuildingGreen (Envir. Bldg. News)– Top 10 Green Building Product

• Architectural Record – Editor’s Pick

Columbia: An Early Adapter• Columbia saw the writing on the wall 10 years

ago with the USGBC’s stance on formaldehyde and VOC’s.

• The suppliers and our competitors were slow to change and were content with the “status quo”.

• We took responsibility to find an alternative adhesive and pursued it.

• Our employees, from top management to the technicians in our mills, had to have the mindset that they were going to make this work.

• This was not the flavor of the month, but a new way of life.

Challenges• Became “The Bad Guy” of our industry by

disrupting the “Status Quo”.• Even when Columbia was making progress, the

industry pushed back even harder – Made it more difficult to sell our veneers to our

competition.• Capital needed for new equipment in our

facilities• Tighter process controls in a new realm• Staying on track even when there were bumps

in the road.

Benefits• Product differentiation that was cost neutral.• Easily met CARB Standards.• Emissions from our manufacturing were

significantly reduced.• New technology gave us a cost advantage.• Cost avoidance in capital spending on equipment

to filter out emissions.• Columbia now viewed as an leader and innovator,

not just a hardwood plywood producer

Innovation• Innovation is an integral part of our company.• Implemented lean manufacturing principles in 2008

and have realized over 45 million dollars in cost savings.

• We evaluate everything we do, while focusing on the needs of the customer.

• People bring ideas to us wanting our opinion.• “Green Chemistry” is just a portion of our

innovative thinking

Investment in Innovation

• Invested in High-efficiency lathes

• Alternative wood supplies (Hybrid Poplar)

• Value added products• Continued research on

adhesives

Expanding Product Mix• New value-

added materials and options enable customers to reduce operational cost and complexity

New

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Tagline:Innovating Responsibly™

Mission:Our ideas will be groundbreaking,

and our stewardship will be forever mindful of the ground we live on.

Core Values:• Customer service above all else

• Absolute integrity• Share the success