Terms

Book Value per fund unit

The unitholders' equity, at the end of the year, divided by the number of fund units outstanding at the end of the period.

Capital Employed

Consists of the funds invested or retained in Canfor in the form of shares or liabilities. It is composed of unpresented cheques, current bank loans (net of cash and temporary investments), current portion of long-term debt, long-term debt, future income taxes arising from timing differences and unitholders' equity. Long-term liabilities and other accruals such as post employment benefits and unrealized foreign exchange losses on long-term debt are specifically excluded because they do not represent borrowed funds or funds invested by unitholders.

Earnings Before Interest, Taxes and Amortization (EBITDA)

Represents operating income plus amortization.

Net Debt

Total debt less cash and temporary investments.

Net Income per Fund Unit

Basic earnings per share are based on the weighted average number of fund units outstanding during the period. Diluted earnings per share are based on the weighted average number of fund units, outstanding at the beginning of or during the period.

Return on Assets

Equal to net income plus interest, after tax, divided by the average of the total assets at the beginning and end of the year.

Return on Capital Employed

Equal to net income plus interest, after tax, divided by the average of the capital employed during the year.

Return on Common Unitholders' Equity

Equal to net income for the year, divided by the average of total unitholders' equity at the beginning and end of the year.