A CONSISTENT

FORCE
INVESTOR PRESENTATION, APRIL 2017
 FORWARD-LOOKING STATEMENTS

This presentation contains certain statements that are forward-looking,

including comments with respect to the Company's objectives, strategies,
targets and expectations. We caution you not to place undue reliance on these
statements since a number of known and unknown risks and uncertainties
may cause actual results to be materially different from those expressed or
implied by such forward-looking statements. Such risks include: economic
conditions; dependence on major customers; availability and cost of raw
materials; environmental risk; risks related to acquisitions; litigation risk;
insurance coverage; currency risk; interest rate fluctuations; customers credit
risk; influence by Stella Jones International S.A. and other factors referred to
herein and in the Company's annual information form, and other public
documents filed with the Canadian Securities Regulatory Authorities (available
on SEDAR at www.sedar.com).

2
 COMPANY OVERVIEW
A leading North American supplier of pressure treated wood
products
Focused on industrial markets, but growing its residential
presence
Railway ties and utility poles represent approximately 70% of annual sales
Opportunities across residential lumber markets
37 wood treating facilities: 13 in Canada, 24 in the U.S.
Also operates 16 pole peeling facilities and a coal tar distillery
Market cap (TSX: SJ) of $2.7 billion; EV of $3.4 billion
(as at March 24, 2017)

Growing top line but focused on bottom line performance

Sixteen years of continued earnings growth
3
 CREATING VALUE THROUGH ACQUISITIONS
July 2003: Cambium Group Inc. (Canada)
Aug. 2005: Webster Wood Preserving (U.S.)
July 2006: Bell Pole Company (Canada)
Feb. 2007: Wood utility pole business of J.H. Baxter (U.S.)
April 2008: The Burke-Parsons-Bowlby Corporation (U.S.)
April 2010: Tangent Rail Corporation (U.S.)
Dec. 2011: Thompson Industries (U.S.)
Nov. 2012: McFarland Cascade Holdings (U.S.)
Nov. 2013: The Pacific Wood Preserving Companies (U.S., 3 wood treating facilities)
May 2014: Wood treating facilities of Boatright Railroad Products (U.S.)
Sept. 2015: Treated Materials Co., Inc. (U.S.)
Oct. 2015: Ram Forest Group Inc. and Ramfor Lumber Inc. (Canada)
Dec. 2015: United Wood Treating Company, Inc. (U.S.)
June 2016: Lufkin Creosoting Co., Inc. and 440 Investments, LLC [Kisatchie] (U.S.)
Dec. 2016: Bois KMS Lte and Northern Pressure Treated Wood Ltd (Canada)
4
 2016 ACQUISITIONS
Lufkin Creosoting Co., Inc.
Producer of treated wood utility poles and timbers
Operates a wood treating facility located in Lufkin, Texas
Sales of approximately US$34.2 million for the year ended December 31, 2015
440 Investments, LLC
Parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie
Trucking, LLC and Kisatchie Midnight Express, LLC (collectively, Kisatchie)
Kisatchie produces treated wood utility poles, pilings and timbers
Operates two wood treating facilities located in Noble and Pineville, Louisiana
Sales of approximately US$51.8 million for the year ended December 31, 2015
Bois KMS Lte and Northern Pressure Treated Wood Ltd
Producers of treated wood utility poles
Operate wood treating facility located in Rivire-Rouge, Qubec and Kirkland lake,
Ontario, respectively

5
 STELLA-JONES NETWORK

WOOD TREATING FACILITIES 1

COAL TAR DISTILLERY

6
 OVERVIEW RAILWAY TIES
Consolidation among railway operators favours large scale tie
providers
Investment in rail infrastructure further encouraged by sustained
demand for rail service in recent years
90% of ties sold in North America
are for maintenance purposes and
over 90% are wood
Industry purchases of 24.2 million
ties in 2016
Healthy demand from maintenance needs

7
 OVERVIEW UTILITY POLES
Stella-Jones is one of the largest treated wood utility pole
suppliers, supporting North Americas electrical and
telecommunication networks
Stable market, mostly replacement demand
Expected to increase in coming years
Transmission pole demand also
stimulated by special projects
About 150 million poles in North
America
Wood offers the best value over
alternative materials, such as steel,
composites and cement

8
 OVERVIEW RESIDENTIAL LUMBER
Products available at over 180 Big Box stores in Canada
Acquisition of Ram Forest Group Inc. in 2015 enhances our
presence in this market and provides expansion opportunities
Now selling directly to retailers
Transitioned to a value-added full service offering from the provision of
treating services only for wholesalers
Increased sales and dollar margin on existing business
We also supply treated building
products to over 120 additional
Big Box stores in the northwest
U.S. and Alaska

9
 OTHER PRODUCTS

INDUSTRIAL PRODUCTS
Treated piles and timbers, mainly used for a variety of land-based and
marine applications
Bridges and crossing timbers for the railroad industry
Coal tar distillation

LOGS AND LUMBER

Non-pole quality logs
Procurement to support growing residential lumber requirements
Purchase and resale to third parties at prices close to cost of sales

10
 KEY SUCCESS FACTORS
Relative protection against volatility
Railway ties and utility poles are part of basic infrastructure
Demand primarily driven by replacement and maintenance
We have strictly followed our well defined business model over
the past sixteen years
Focused on organic growth
Expansion through acquisitions in railway ties and utility poles, as well as
select residential lumber markets
Multiplier effect from acquisitions
Makes Stella-Jones a stronger industry player
Extends our North American network and broadens our product line
Greater customer service flexibility and ability to bid on larger projects
Synergies through sharing of best practices, consolidation of SG&A,
optimization of capacity and logistics, as well as stronger purchasing power

11
 PROFITABLE GROWTH

Dec. 2001 Dec. 2016

Treating plants 5 36

Employees 267 1,930

Sales (millions) $96.1 $1,838.4

% of sales in the U.S. 14.0% 70.9%

EBITDA1 (millions) $5.0 $264.8

1 This is a non-IFRS measure. Please refer to disclosure on slide 19, Non IFRS measures

12
 PROFITABLE GROWTH
(in millions)
$2,000 $300

$1,500 $225

$1,000 $150

$500 $75

$0 $0
2006 2008 2010 2012 2014 2016 2006 2008 2010 2012 2014 2016
Total Sales U.S. Sales EBITDA* Net Income*

22.7% total sales CAGR (2006-2016) 21.4% EBITDA** CAGR (2006-2016)

Net income increased every year
* In accordance with IFRS since January 1, 2010
** This is a non-IFRS measure. Please refer to disclosure on slide 19, Non IFRS measures

13
 FIVE-YEAR FINANCIAL SUMMARY
(Dec. 31 year end)
2016 2015 2014 2013 2012
(in millions, except per share data)
Sales $1,838.4 $1,559.3 $1,249.5 $1,011.3 $ 732.4
% of sales in the U.S. 70.9% 81.7% 81.6% 78.1% 67.7%
EBITDA1 $ 264.8 $ 243.4 $ 176.3 $ 155.0 $ 120.3
EBITDA1 margin 14.4% 15.6% 14.1% 15.3% 16.4%
Net income $ 153.9 $ 141.4 $ 103.8 $ 92.5 $ 73.1
Diluted EPS $ 2.22 $ 2.04 $ 1.50 $ 1.34 $ 1.13
Dividend per share $ 0.40 $ 0.32 $ 0.28 $ 0.20 $ 0.16
Total debt2/trail. EBITDA1 2.62 2.75 2.52 2.41 3.02
Cash flow from oper. activities1,3 $ 268.9 $ 254.3 $ 181.5 $ 160.6 $ 120.8
1 This is a non-IFRS measure. Please refer to disclosure on slide 19, Non IFRS measures
2 Including short-term bank indebtedness
3 Before changes in non-cash working capital components and interest and income tax paid

14
2016 SALES BY PRODUCT CATEGORY

15
 STATEMENT OF FINANCIAL POSITION SUMMARY
(in millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014

Working capital $ 927.9 $ 854.4 $ 615.1

Property, plant & equipment $ 467.0 $ 375.5 $ 281.6

Intangible assets & goodwill $ 431.9 $ 386.6 $ 305.3

Total assets $ 1,962.0 $ 1,778.9 $ 1,289.0

Long-term debt1 $ 694.4 $ 669.9 $ 444.6

Total liabilities $ 935.5 $ 865.4 $ 596.7

Shareholders equity $ 1,026.4 $ 913.5 $ 692.3

1 Including current portion

16
 OUTLOOK
Railway ties:
Lower Y/Y demand for 2017, following strong demand through the first half in 2016
Softer pricing to reduce sales and negatively impact operating margins
Utility poles:
Maintenance demand should gradually return to normal patterns in the second half of
2017
Operating margins expected to decrease as a result of the geographical sales mix
Residential lumber:
Benefit from continued demand for new construction and outdoor renovation projects
in the North American residential and commercial markets
Leverage the strength of our continental network
Capture more of existing clients business
Diligently seek new market opportunities
Focus on improving operating efficiencies throughout the organization
Long-term strategic vision focused on core market consolidation
Must meet strict investment criteria and provide synergistic opportunities
17
 IN SUMMARY
North American leader in infrastructure driven markets
Products play a vital role in the basic continental transportation and
telecommunication infrastructure

Established track record of growth and profitability

Sixteen years of continued earnings growth
Sales and EBITDA CAGR of 22.7% and 21.4%, respectively, from 2006 to 2016
2017 marks the thirteenth consecutive year of dividend increase

Focus on cash generation and prudent use of leverage

Proven consolidator with disciplined acquisition strategy
Acquisitions expected to be accretive with potential for significant synergies

Experienced and proven management team

18
 NON-IFRS MEASURES
Operating income before depreciation of property, plant and equipment and
amortization of intangible assets (herein referred to as earnings before interest,
taxes, depreciation and amortization [EBITDA]), and cash flow from operating
activities before changes in non-cash working capital components and interest
and income taxes paid are financial measures not prescribed by IFRS and are not
likely to be comparable to similar measures presented by other issuers.

Management considers these non-IFRS measures to be useful information to

assist knowledgeable investors regarding the Companys financial condition and
operating results as they provide additional measures of its performance. Please
refer to the Companys MD&A for a reconciliation of EBITDA to net income.

19
A CONSISTENT
FORCE