INVESTOR PRESENTATIONNine months ended September 2019

And post acquisition of Pacific Mutual Door Company (PMD)

TSX: HDIwww.hdidist.com

Dark Brown Charleston Oak

CrystaliteRain Cloud Antique Oak Icy Mherge

Oak Retro Baltimore

Forward Looking StatementCertain statements contained in this presentation, including all statements that are not historical facts,contain forward-looking statements and forward-looking information within the meaning of applicablesecurities laws. Forward-looking statements normally contain words like believe, expect, anticipate, plan,intend, continue, estimate, may, will, should and similar expressions. Such statements are not guaranteesof future performance. They are based on management's expectations and assumptions regardinghistorical trends, current conditions and expected future developments, as well as other factors that webelieve are appropriate in the circumstances. Management has based these statements on estimates andassumptions that they believed were reasonable when the statements were prepared. Actual results couldbe substantially different because of the risks and uncertainties associated with the Company's business.More information about the risks and uncertainties affecting the Company's business can be found in the"Risk Factors" section of our Annual Information Form dated March 14, 2019 which is available under theCompany's profile at SEDAR (www.sedar.com).

Although we have attempted to identify factors that would cause actual actions, events or results to differmaterially from those disclosed in the forward-looking statements or information, there may be otherfactors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many ofthe factors are beyond the control of Hardwoods. Accordingly, readers should not place undue reliance onforward-looking statements or information. Hardwoods undertakes no obligation to reissue or update anyforward-looking statements or information as a result of new information or events after the date hereofexcept as may be required by law. All forward-looking statements and information herein are qualified bythis cautionary statement.

23

HDI is the #1 Distributor of Architectural Building Products in N.A.

Import: Guararapes MDF: Commercial fixtures

Domestic Supplier: Arauco TFL: Residential Use4

(1) Measured from December 31, 2014 to September 30, 2019 (2019 period on a trailing twelve month basis)(2) Pro forma basis, includes estimated full year impact of acquisitions made in 2019

Outstanding track record of growth • Five year average(1) annual sales growth 21%, and Adj. EPS growth of 12%

Proven acquisitions strategy(2) • 47 US locations acquired in past seven years

• $625 million of annual revenue added

Highly fragmented industry • HDI market share estimated at 10%

Shareholder returns • Dividend has been increased every year for the past seven years

• Share repurchase plan in place and being utilized

Disciplined business model • +60 year old business• Experienced management team• Low debt leverage• No significant supplier/customer

concentration

History of Growth and Diversification

25

70%

15%

15%

60%

20%

20%

50%

40%

10%

60%

40%

2010 2014 2018

Sales Mix by Market

Sales Mix by Country

Locations

Customers

26

+ 2,100

32

+ 10,000

62

+ 35,000

75%

25%

90%

10%

Residential

Commercial

Diversified

USA

Canada

Products Diversification

6

• Higher value decorative products, generally non-commoditized and subject to stable pricing• Approximately 25% of the products are exclusive or semi-exclusive offerings• Includes globally sourced, proprietary brands

Chart is on a pro forma basis, includes estimated annual impact of acquisitions completed in 2019

Critical Role in the Value Chain

7

Manufacturers

Approximately 1,000 Suppliers WorldwideNo significant supplier concentration(largest less than 6% of purchases)

Architects & Designers

ResidentialCustomers 50%

CommercialCustomers 40% Diversified 10%

66 Locations

North American Sales Team450 Strong

Customer Base + 35,000No customer concentration(largest less than 2% of sales)

Comprehensive North American Network

Estimated N.A market share = 10%

8

10%

90%

Revenue by Country

Canada U.S.

FY 2019 – Summary Statistics

9

HDI ($CAD) (millions) Q3 2019 Q3 2018 Chng Chng %Sales $292.5 $290.4 +$2.1 +0.7%

US Organic ($USD) -$3.7 -1.9%

US Acquisitions ($USD) +$3.1 +1.6%

CAD Organic ($CAD) +$0.2 +0.6%

Gross Profit $53.3 $51.6 $1.7 +3.3%

Gross Profit % 18.2% 17.8%

Operating Expenses $39.2 $38.4 $0.8 +2.2%

Operating Expenses % 13.4% 13.2%

Adjusted Profit $9.4 $9.0 +$0.4 +4.3%

Adjusted diluted EPS $0.43 $0.42 +$0.01 +2.4%

Cash from operating activities $25.5 $3.9 +$21.6

Less cash outflows for plant and equipment $1.1 $0.7 +$0.4

Free cash flow $24.4 $3.2 +$21.2

Track Record of Growing Sales with Stable Margins

8

Sales Growth % 21% 23% 25% 38% 31% 9% 5%

10

$306

$371

$456

$572

$789

$1,037

$1,134$1,159

17.6%

18.2%

17.3% 17.4%

18.2%18.5%

17.7%17.8%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

$0

$200

$400

$600

$800

$1,000

$1,200

2012 2013 2014 2015 2016 2017 2018 Q3 2019 TTM

Gro

ss M

argi

n

Reve

nue

(C$M

M)

Sales Gross Margin

“Adjusted Profit” and “Adjusted EPS” are non-IFRS and non-GAAP measures. See the Company’s Annual Report filed on SEDAR.com for a reconciliation of these measures to IFRS and GAAP measures.

Accretive Growth For Shareholders

11

% Increase 100% 9% 52% 4% 15% 5% -14%

$0.41

$0.81

$0.88

$1.34

$1.39

$1.54

$1.61

$1.39

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

2012 2013 2014 2015 2016 2017 2018 Q3 2019 TTM

Adjusted Profit per Share (C$)

1112

HDI’s Long Term Growth Strategy

2018 1. MarketGrowth

2. ShareGrowth

3. Acquisitions 2023

$125 m

$150 m

$175 m

$1.1 $1.5

+$1.1 billion

+$1.5 billion

• Anticipated market growth of 2% per year• Strategic initiatives yielding additional share growth of 2% - 4% per year• Acquisitions targeting another 3% - 5% per year

13Per FMI Consulting; Construction Outlook Q3 2019 Report

12

• Approxiamately 50% of our sales end up in residential

applications (including repair and remodel)

• Population growth / demographics suggest pent up demand

• Long-term mortgage rates near historic lows

• Strong order growth being reported by major US

homebuilders

• Consistent demand for new projects

• Strong N.A economy

Per National Association of Home Builders

Residential Construction

13

1. US Construction Market, Capture Share

Commercial Construction

Prolonged period of below-average construction, potential for

catch up growth

Remodeling Activity

500

1,000

1,500

2,000

2,500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

E

2020

E

2021

E

Hou

sing

sta

rts

(in m

illio

ns)

$

$100

$200

$300

$400

$500

$600

$700

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

E

2020

E

2021

E

2022

E

2023

E

Spen

ding

on

non-

res

cons

truc

tion

(B$)

Wood Products • Significant market, core competency of HDI

• Core products: hardwood lumber, hardwood plywood

• Optimize market share opportunity

14

2. Additional Market Share, Strategic Product Categories

Decorative Surfaces and Composites• High-growth product segment

• Core products: Composite panels, laminates

• Driven by the latest design trends and market preferences

47 U.S. locations acquired in the last 5

years, +$625MM in revenue added

15

3. Acquisitions, Capitalize on Significant Opportunity• Significant market share available, highly fragmented industry • Robust acquisitions pipeline, dedicated internal resources• Attractive purchase multiples, accretive

Acquisition Date

Target Price Paid (US $)

Annual Revenuesat acquisition (US $)

Key strategic benefits

2019 $34.5 M $58 M • See next slide

2019 $3.6 M $12 M • Contiguous expansion of our existing California presence

2018 $3.7 M $13 M • Take out a competitor, add key sales people

2017 $6.0 M $25 M • Geographic and product expansion in the US north east

2017 $0.6 M $5 M • Take out a competitor, add key sales people

2016 $107.0 M $282 M

• Geographic expansion (26 locations), minimal overlap

• Product and end-market diversification

• Consolidated vendors and rebates

• Leverage our proprietary global sourcing capability

• Acquire a well developed M&A pipeline

• Add people talent at multiple levels of the organization

• Consolidate operating systems

2014 $15.0 M $30 M • Addition of new products, new geography

2013 $2.8 M $4 M • Fill in product gap, unique offering

2011 $13.5 M $40 M• Geographic expansion, minimal overlap

• Product diversification

• Leverage our proprietary global sourcing capability

EAGLE PLYWOOD

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3. Recent Acquisition – Pacific Mutual Door Company

US$58 million in revenue, five locations

Unique distribution model, highly profitable

Focus on door & millwork product segment, compliments existing HDI offering

Entry into significant and high-growth Tennessee market

No significant overlap of customers, strategic fit with existing supplier base

Financed through existing debt facilities

Further expands pipeline of M&A targets

Immediately accretive to shareholders

• HDI supports brands in the market place• Competitors generally will not have same support structure in place• Potential to build a sustainable competitive advantage, improving EBITDA margins over time

Profit Opportunity - Optimize the Platform

16

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FAIRNESS INTEGRITY

VISI

ON

VALUES

PASSION PEOPLE

HARDWOODS SPECIALTY PRODUCTS

FRANK PAXTON LUMBER

HARDWOODS MICHIGAN INC.

RUGBY ARCHITECTURALBUILDING PRODUCTS

VENDORS CUSTOMERS

A world-class distributor of architectural building products

Continued management of the balance sheet

Return cash to shareholders through dividends and share repurchases

Sept 2019 FY 2018

Net Debt $84.5 $111.4

Adjusted EBITDA after rents(1)(2) $52.2 $56.3

Net Debt to Adjusted EBITDA after rents(1) 1.6 2.0

Unused debt facility $100.1 $78.4

(1) “Adjusted EBITDA after rents” and “Net Debt to Adjusted EBITDA rents” are Non-IFRS and Non GAAP measure. See the Company’s Annual Report and Second Quarter MD&A filed on SEDAR.com for a reconciliation of this measures to IFRS and GAAP measures

(2) September 2019 period is presented on a trailing twelve months basis.

17

Debt and Liquidity Profile

Pursue value-added acquisitions

Support anticipated organic growth in sales

Priorities

(1) Payout ratio is defined as dividends per share divided by adjusted profit per share.(measured as at December 31, 2018)(2) Dividend yield defined as dividends per share divided by the stock price (stock price as at September 30, 2019)

18

Dividends

Announced in November a 6% increase to the dividend

Seven straight years with annual dividend increases

Dividend yield(2) of approximately 2.5%

0%

5%

10%

15%

20%

25%

30%

35%

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

2012 2013 2014 2015 2016 2017 Q3 2018 TTM

Dividends vs. Payout Ratio (1)

Dividends declared Payout ratio

2018

Sustainable and diversified business model

Positive multi-year outlook in key end markets

Fragmented industry, significant acquisition opportunity exists

Attractive conversion ratio of EBITDA to free cash flow(1)

Strong balance sheet to enable growth and execute on initiatives

Long term record of shareholder returns

19

Why HDI?

(1) Free cash flow defined as last twelve months operating cash flow, excluding changes in working capital, minus capital expenditures.