WIXLIB

Keep Your Code Current or Fall OutGavin Gormley, Sr. Manager Sales and SupplyChain Systems (Canfor)Sid Arya, Sr. Manager (Deloitte)June 21st, 2016

Objectives Considerations around application of ESUs versus upgrade to the nextversion of the application Mitigate risks for future application and ESU upgrades Learn about key success factors for the projectC A N F O RC O R P O R A T I O NPage 2

IntroductionSid AryaSenior ManagerSid has over 18 years of consultingexperience that includes ERPassessments, business process redesign,net new implementations, upgrades ofERP Applications, transition planning andproject management.He has over 17 years’ experience implementingvarious releases of Oracle JD EdwardsEnterpriseOne software for companies of allsizes in countries such as India, Singapore,Malaysia, Thailand, Philippines, Australia, NewZealand, USA and Canada.Project EDGE Role:Project Management Team MemberC A N F O RC O R P O R A T I O NGavin GormleySr. Mgr, Sales & SupplyChain SystemsGavin leads Canfor’s Sales & SupplyChain Systems team within Corporate ITand has extensive ERP implementationexperience.He has over 20 years of experience inapplications development and supportmanagement with a wide range of ERPsystems including JDE, PeopleSoft, andMicrosoft Dynamics products.Project EDGE Role:Project Management Team MemberPage 3

About Canfor

Company Profile: Canfor– Lumber capacity: 6 billion board feet perannum– 12 mills in British Columbia– 1 in Alberta– 17 operations in U.S. SouthLumber Mills– 3 - South Carolina– 1 - North Carolina– 3 - Georgia– 3 - Alabama– 1 - Mississippi– 1 – ArkansasOther– 2 - Laminating Plants Arkansas & Georgia– 1 Re-Manufacturing Mill South Carolina– 2 Chip Mills - Texas & Louisiana– 6500 employeesC A N F O RC O R P O R A T I O NPage 5

One of the Largest Integrated Forest Companies Pulp and Paper Operations–3 Kraft Pulp & 1 Paper mill in central BC 1 BCTMP mill in BC north Market pulp capacity: 1.1 million tonnes Kraft paper capacity: 140,000 tonnesC A N F O RC O R P O R A T I O NPage 6

A World Leader in Sustainable ForestryCanfor is one of the few primarylumber manufacturers to offerproducts third-party certified to all ofthe independent certificationprograms in North AmericaPercentage ofProductionCSAFSCSFITotalCanadian mills85%10%5%100%--100%100%US millsC A N F O RC O R P O R A T I O NOur success depends on the well-beingof the forests we manage. Through allof our forest management activities, ourskilled forest professionals protect:-BiodiversitySpecies at riskWildlifeOther Forest ValuesPage 7

The Journey.

JDE Implementation Phase 1 - Background Canfor made a strategic decision in 2012 to replace its bespoke legacy applications andprovide a platform that would support expansion, standardization, and unification across itsoperations Canfor implemented version 9.1 of the JD Edwards (JDE) system in July of 2014 to supportits Canadian lumber operations Key system components support: demand forecasting, production planning, supply chainmanagement, sales, purchasing, inventory management, transportation planning andexecution, finance functions, and business analytics The implementation has been tailored to Canfor’s unique and specific needs and closelyintegrated with other peripheral products such as Oracle Transportation Management (OTM),Demantra, Oracle E-Business Suite (EBS), and a number of in-house developed applicationsC A N F O RC O R P O R A T I O NPage 9

Project Timeline – Phase 152025MONTHSC A N F O RC O R P O R A T I O N10Page 10

Application Footprint – Phase 1Identifying opportunities toaccelerate configuration anddocumentation activities wasparticularly beneficial due to thescope of work: Deloitte LLP and affiliated entities.C A N F O RC O R P O R A T I O NConfiguring 10 JDE ModulesDeveloping 95 JDE WFRICEobjectsDocumenting systemconfiguration in Design BooksDeveloping knowledge transferand training documentation11Page 11

JDE Implementation Phase 2 - Background Canfor has since acquired a number of other businesses in the US South. The project team continues to explore synergies in design by looking forward to the potentialacquisitions and integrations in the future. The system was subsequently launched at Canfor’s locations in the south eastern US inSeptember of last yearC A N F O RC O R P O R A T I O NPage 12

Project Timeline – Phase 34567891011MONTHS Deloitte LLP and affiliated entities.C A N F O RC O R P O R A T I O N13Page 13

EDGE ApplicationsPPTProduction PlanningToolDRPDemand PlanningJDEJD Edwards ERPInventorySales OrderQUOTEAFSQuotes ApplicationAvailable For SaleWork OrderMaterial PlanningFoundationFULFILLMENTQuotes ApplicationAvailable For SaleGLAPARPODGSData Gathering SystemDEMDemantra ForecastingC A N F O REBSEnterprise LSUSSTransportationMP2USS MROKronosUSS PayrollOBIEEBusiness IntelligenceReporting.Net ApplicationC O R P O R A T I O NProcurementUSSProcurementOracle ApplicationUSS ApplicationCanada Application14Page 14

Canfor’s Legacy ApplicationsS#ApplicationPurposeImportance to CanforFinal Disposition1KronosPayroll & GarnishmentssystemPayroll, HR, and HumanResource ManagementRetained – Integrated with JDE2Infor MP2 – MaterialPlanningMRO systemMills and Plant manage all WorkOrder and Purchase Orders withthis systemRetained – Integrated with JDE3Log ProcurementLog Purchasing and TractManagement systemCustom application specific toUSS operations Log operationsRetained – Integrated with JDE4iNSELS – Integrated NewSouth Express LogisticsSystemTrucking FleetManagement & BackhaulInvoicesManages dispatch operationsfor Fleet and Drivers (Canforemployees) including BackhaulbusinessRetained – Integrated withOTM/JDE5FAS – Fixed Asset SystemDepreciation and FixedAsset ManagementSystem6DGS – Data GatheringSystemLumber Production datacollectionLeverage existing productiondata collection investmentRetained – Integrated with JDE7Koppers Wood TreatingSystemTreated LumberProcessing datacollectionProvide connection of treatingprocess to availability ofinventory statusRetained – Integrated with JDEthrough DGS87iMRO SystemImplementation deferred toPhase 39ADPPayroll systemImplementation deferred toPhase 3C A N F O RC O R P O R A T I O NRetained – No integration toJDE – uses Manual JE’s15Page 15

JDE Implementation Phase 3 - Background The system is currently being extended for use in the locations in Alabama, Mississippi,Georgia, and Arkansas and is expected to be live early in 2017 The focus has shifted from technology to business integration, change management andadoption as a result of the work done by the project team upfront. Future expansion plans are also in the pipeline to expand the footprint furtherC A N F O RC O R P O R A T I O NPage 16

Timeline – Feb 2017 Go ESIGN / BUILDDesign D. &FSDsAnthony TripDevelopment& FUTConfig. &Design BooksIntegrationTestingCRP 2UAT (UserAcc. ePost Go-LiveSupportC A N F O RC O R P O R A T I O NNote – Operate Phase is likely to be 13 weeks; includes 7 weeks Deloitte Onsite support and additional 6 weeks support by a Canfor led Support team.Page 17

The real thing.

Motives for keeping JDE current To obtain the most recent product improvements and features To obtain any security patches and corrections To ensure supportability and extend product life expectancy – i.e. avoid obsolescence andmaximize the initial software capital investment returns To aid in compatibility with external dependent software products To retain valued IT staff members by ensuring their skillsets are maintained currentC A N F O RC O R P O R A T I O NPage 19

Costs and Considerations in Applying Updates Customized add-ons need to be retrofitted to ensure compatibility Functionality needs to be regression tested – especially where interfaces to external systemsare concerned Stakeholders (end users) need to invest time and effort to perform testing which can beperceived as detracting from their main responsibilities Multiple environments need to be provisioned and maintained Concurrent development and configuration needs to be carefully managed during theupdating process System and end user documentation may need to be updated End users may need retraining Communications, coordination, release management and rollback plans must be carefullymanagedC A N F O RC O R P O R A T I O NPage 20

JDE 9.2JDE 9.2 became generally available on Oct 6, 2015Upgrade ProcessSupport for 9.2Simplified Upgrade available for customers moving from 9.0 Update 2 and abovePremier Support until Oct 2020, Extended Support until Oct 2023Support for 9.0.2 to9.1Premier Support expiring between Nov 2015 & Mar 2017Extended Support expiring between Nov 2018 & Mar 2020Count of new feature functionality for End User: 30, Developer: 02, CNC: 03Expanded User Id & password, Simplified UI Navigation (Kiosk mode), Recent Breadcrumbs, Email & CalendarIntegration, CafeOne, Watchlists, User Defined Objects, Media Objects drag & drop, Real time summarizationInternet of Things (IoT) OrchestratorOne View Reporting improvements, One View Financial StatementsNew FeaturesOptimized user interface, advanced end user query capabilities, improved IT administration functionality and highavailability and disaster recovery enhancements, BI Publisher: Improve the formatting and delivery of output withpixel-perfect output.Web Services: Interface with other technologies in a standardized toolset.Performance Enhancements – code optimization and database enhancementsNew ModulesReleasedNew Mobile Applications, Advanced Job Forecasting, Outbound Inventory Management, Rental Management9.2 InitiativesUpgrade Workshops run by several Oracle business partners across North AmericaFastest Upgrade Contests by OracleMore InformationSocial MediaC A N F O RLearnJDE.com, UpgradeJDE.com, Oracle.com, Support.Oracle.com#AskJDEdwards, #JDEIdeasC O R P O R A T I O NPage 21