Slide 1: Investor Presentation September 2023
WEYERHAEUSER Investor Presentation September 2023 ANDY TAYLOR Vice President, Investor Relations KARA HERCHE Senior Manager, Investor Relations Contact Us: (206) 539-3907 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2 This presentation contains statements and depictions that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including without limitation with respect to the follow
Slide 3: Table of contents
Table of contents Company Overview Unmatched Portfolio Industry-Leading Performance Strong ESG Foundation Disciplined Capital Allocation Investment Thesis | 2025 Targets & Progress | Who We Are | What We Do | Why We Matter Timberlands | Real Estate, Energy & Natural Resources | Wood Products Operati
Slide 4: Investment thesis
Weyerhaeuser Investment thesis Superior Shareholder Value Unmatched Portfolio Industry-Leading Performance Disciplined Capital Allocation 4 Strong ESG Foundation
Slide 5: 2025 Year-End Targets
2025 YEAR-END TARGETS Driving Growth and Shareholder Value Unmatched Portfolio Industry-Leading Performance Strong ESG Foundation Disciplined Capital Allocation TIMBERLANDS GROWTH MAKE DISCIPLINED INVESTMENTS OF $1 BILLION FROM 2022 TO 2025 NATURAL CLIMATE SOLUTIONS GROW ANNUAL EBITDA TO $100 MILLIO
Slide 6: Key 2022 Accomplishments
TIMBERLANDS GROWTH MADE STRATEGIC ACQUISITION IN THE CAROLINAS NATURAL CLIMATE SOLUTIONS SIGNED CARBON CAPTURE AND SEQUESTRATION AGREEMENTS FOR TWO PROJECTS IN THE GULF SOUTH OPERATIONAL EXCELLENCE CAPTURED $40 MILLION IN OPX IMPROVEMENTS ACROSS OUR BUSINESSES COMPETITIVE POSITION RANKED #1 IN EBITD
Slide 7: Who we are
Who we are Largest Timber REIT with Unmatched & Complementary Industry-Leading Businesses TIMBERLANDS We are the largest private timberland owner in North America REAL ESTATE, ENERGY & NATURAL RESOURCES We capture the highest value from every acre WOOD PRODUCTS We are one of North America’s largest,
Slide 8: What we do
DIVERSE CUSTOMER MIX that fully values our quality, scale, reliability and sustainable practices PROPRIETARY SEEDLINGS yield superior growth, wood quality and survival characteristics CUSTOMIZED PLANTING deploys the best genetic material for each acre on our land base TARGETED SILVICULTURE generates
Slide 9: Why we matter
Why we matter Long-Standing Focus on Sustainability We manage the most sustainable, versatile resource on earth: forests We are experts at using trees to make products people need We do it the right way so our forests will last forever WE ARE SUSTAINABLE BY NATURE OUR PORTFOLIO IS CLIMATE-FRIENDLY W
Slide 10: Unmatched Portfolio
UNMATCHED PORTFOLIO 10 Timberlands Real Estate, Energy & Natural Resources Wood Products Our Quality, Diversity and Scale Cannot Be Replicated
Slide 11: Timberlands Portfolio
TIMBERLANDS PORTFOLIO Superior Holdings Create Value Today and Tomorrow Highly productive planted pine forests Balanced mix of grade & fiber logs Scale operations in every major region U.S. SOUTH Premium Southern Yellow Pine 7 MILLION ACRES Premium land west of Cascade mountains Sawlogs are ~90% of
Slide 12: Timberlands: highlights
Timberlands: highlights Unmatched Quality, Scale and Diversification Adjusted EBITDA(1) by Region (2020-2022) REVENUE by END MARKET (2022) Third-Party Domestic 52% WY Mills 23% Export Customers 25% ~$695 MILLION Adjusted EBITDA(1) | 3-Year Average ENDURING VALUE ACROSS MARKET CYCLES 12 OUR COMPETITI
Slide 13: Competitive Position: We Are the Largest Timber REIT
COMPETITIVE POSITION We Are the Largest Timber REIT Our Scale Across All Major Woodbaskets Our Integrated Manufacturing Allows us to flex volume and maximize overall returns Our Delivered Log Business Model Enables us to capture higher margins Acres in millions (2) TIMBER REITS OWNERSHIP Weyerhaeuse
Slide 14: Timberlands Export Markets
Weyerhaeuser TIMBERLANDS EXPORT MARKETS Unrivaled Market Position and Supply Chain Expertise UNIQUE JAPAN EXPORT BUSINESS Multi-decade relationships supplying post & beam housing market Western timberlands ownership provides premium logs at unrivaled scale Largest log export facility in North Americ
Slide 15: Western timberlands
Western timberlands Unmatched Quality, Scale and Market Access Our Timber Inventory Is Primarily High-Value Species Sources: Forisk Ownership Database 2022, tax parcel data, public presentations, WY reports We have premium timberlands west of the Cascade mountains We hold the #1 position in Adjusted
Slide 16: Southern timberlands
Southern timberlands Peer-Leading Scale and Market Access NC/VA MS/AL AR/OK/TX/LA TIMBER REITS OWNERSHIP Weyerhaeuser Rayonier PotlatchDeltic(2) Our Scale is Unmatched Across Southern Markets 16 (3) Atlantic Coast includes Florida, Georgia, North Carolina and South Carolina. WY PCH(2) RYN Sources: F
Slide 17: Timberlands Growth Strategy Update
TIMBERLANDS GROWTH STRATEGY UPDATE Disciplined Approach to Growing the Value of Our Timber Holdings WEST SOUTH (1) 2022 total includes several smaller acquisitions, not separately announced. Carolinas Closed in 2022 Q2 $265 million deployed 80,800 acres acquired Acquired Property Location PROGRESS $
Slide 18: Timberlands Sustainability
100% OF OUR TIMBERLANDS ARE REFORESTED AFTER HARVEST TIMBERLANDS SUSTAINABILITY We Balance Our Harvesting with a Strong Foundation of Environmental Stewardship WE PLANT 130-150 MILLION TREES EVERY YEAR WE HARVEST ONLY 2% OF OUR FORESTS ON AVERAGE EACH YEAR WE LEAVE TREE BUFFERS ALONG WATERWAYS TO PR
Slide 19: Real Estate, Energy & Natural Resources: End-to-End Portfolio Management
WESTERN REGION U.S. SOUTH REAL ESTATE, ENERGY & NATURAL RESOURCES Generating Value Through End-to-End Portfolio Management Wind Conservation Real Estate (HBU) Mineral Royalties Conservation Mineral Royalties Mitigation Banking SOUTHERN REGION Applying expertise and technology to enhance portfolio va
Slide 20: Real estate, energy & natural resources: highlights
Real estate, energy & natural resources: highlights Consistent, Reliable Cash Generation | Growing Natural Climate Solutions ~$290 MILLION Adjusted EBITDA(1) | 3-Year Average ENDURING VALUE ACROSS MARKET CYCLES Natural Climate Solutions Adjusted EBITDA(1) Real Estate 68% ENR 32% OUR COMPETITIVE ADVA
Slide 21: Real Estate Business
REAL ESTATE BUSINESS We Continually Evaluate Every Acre to Unlock Higher and Better Use (HBU) Value (2) Since inception, following the Plum Creek merger in 2016. 21 HBU Acreage by Region(1) South 82% North 4% West 14% (1) As of December 31, 2022. 21 PREMIUM LAND SALES Maximizing Value from Each Acre
Slide 22: Natural Climate Solutions Business
PARTICIPATING IN THE EMERGING OFFSET MARKET Maine pilot project nearing completion Developing future project pipeline Demand increasing and voluntary market recognizing value of high-quality credits LEASING SUBSURFACE FOR CARBON SEQUESTRATION Agreements in place for two projects in the Gulf South ~5
Slide 23: Wood Products Portfolio
LUMBER ORIENTED STRAND BOARD ENGINEERED WOOD PRODUCTS DISTRIBUTION 2nd Largest Producer in North America 19 Lumber Mills (5.5 BBF) 4th Largest Producer in North America 6 Oriented Strand Board Mills (3.1 BSF) Located in the Largest Homebuilding Markets 19 Distribution Centers #1 Engineered Wood Capa
Slide 24: Wood products: highlights
Wood products: highlights Peer-Leading Performance, Superior Reliability and Preferred Supplier #1 IN EBITDA MARGIN In All Wood Products Businesses In First Half 2023 Peer-leading performance OUR COMPETITIVE ADVANTAGE Diverse customer mix & market demand drivers Strategically located in prime woodba
Slide 25: Expect Long-Term Growth in U.S. Housing
Generation Z and Millennials are the largest population cohort and entering peak homebuying years Current homebuilding pace will not fully address the deficit resulting from a decade of underbuilding Historically low inventories for existing and new home sales will help offset impacts from increased
Slide 26: Repair and remodel spending
77% of homes built before 2000 Solid repair & remodel spending, primarily driven by larger professional built projects Housing stock continues to age, with median age greater than 40 years Increased consumer savings, home equity and lock-in effect with elevated mortgage rates U.S. RETAIL BUILDING MA
Slide 27: Increased Adoption of Wood-Based Building
INTERNATIONAL BUILDING CODE now supports TALL WOOD BUILDINGS INCREASED ADOPTION OF WOOD-BASED BUILDING Global Growth and Sustainability Attributes Driving Rising Demand for Wood Products Sources: United Nations, WY analysis, Churkina et al. (Buildings as a global carbon sink, Jan. 2020) GLOBAL CONST
Slide 28: Wood products sustainability
Wood products sustainability Reducing Our Impact | Offering Climate-Friendly Products WE CERTIFY 100% OF OUR WOOD FIBER SUPPLY TO THE Sustainable Forestry Initiative® Fiber Sourcing or Certified Sourcing Standards WE MEET MORE THAN 70% OF OUR OWN ENERGY NEEDS USING RENEWABLE BIOMASS ON AVERAGE WE US
Slide 29: Industry-Leading Performance
INDUSTRY-LEADING PERFORMANCE 29 Operational Excellence Relative Competitive Performance Significant, Sustainable Margin Improvement Accelerated by Innovation Innovation
Slide 30: Operational Excellence
OPERATIONAL EXCELLENCE Delivering Sustainable Margin Improvement Through the Cycle SUSTAINABLE MARGIN IMPROVEMENT Targeting $175-250 Million from 2022-2025 EXPANDING OUR REACH WITH OPX 2.0 Finding Opportunity in Every Corner Future Value World Class Execution on Critical Activities That Generate Lon
Slide 31: Delivering Superior Relative Performance: Our OpX Scorecard
DELIVERING SUPERIOR RELATIVE PERFORMANCE Our OpX Scorecard Sources for competitor data: Public filings. Results include only North American operations. (1) See appendix for definition of Adjusted EBITDA and reconciliation to GAAP amounts. (2) Wood Products peers include BlueLinx, Boise Cascade, Canf
Slide 32: Innovation
innovation Driving Significant Improvements Through Accelerated Focus on Innovation Automation & Robotics Unmanned Autonomous Vehicles Radio Frequency Identification Energy-Efficient Equipment 32
Slide 33: Strong ESG Foundation
STRONG ESG FOUNDATION 33 Sustainability Strategy ESG Performance Sustainability Is a Core Value Carbon Record
Slide 34: Sustainable to our core
Sustainable to our core Strong ESG Performance | Clear Business Alignment | Ambitious Positive Impact OUR SUSTAINABILITY STRATEGY Maintain ESG Foundation Improve Business Alignment Demonstrate Positive Impact Ten-year roadmap to review and adjust ESG-related focus areas and strategies Set and meet a
Slide 35: Our Carbon Record
OUR CARBON RECORD Our Net Climate Impact Is Significantly Carbon Negative For more information on our carbon record methodology visit carbonrecord.weyerhaeuser.com We Joined the Climate Pledge and are Committed to Net-Zero Emissions by 2040 35 Metric tons of carbon dioxide equivalent (mtCO2e) for fu
Slide 36: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION 36 Shareholder Returns Capital Expenditures Long-Term Commitment to Balancing Three Key Priorities Capital Structure
Slide 37: Disciplined Capital Allocation Philosophy
INVEST IN OUR BUSINESSES RETURN CASH TO SHAREHOLDERS MAINTAIN AN APPROPRIATE CAPITAL STRUCTURE CORE ALLOCATION Investment Grade Credit Rating Disciplined Capital Expenditures Sustainable Base Dividend OPPORTUNISTIC ALLOCATION Value-Enhancing Growth Opportunities Liability Management Supplemental Div
Slide 38: Returning Cash to Shareholders: Allocation Framework
(1) See appendix for definition of Adjusted FAD and reconciliation to GAAP amounts. (2) Normally declared and paid annually in the first quarter, based on prior year results. RETURNING CASH TO SHAREHOLDERS Allocation Framework and Cash Return Calculation TARGETED RETURN OF CASH TO SHAREHOLDERS Calcu
Slide 39: Cash Return Framework in Action
CASH RETURN FRAMEWORK IN ACTION Returned $1.75 Billion of Cash to Shareholders Based on 2022 Results Returned $1.62 per share of dividends based on 2022 results Returned $550 million through opportunistic share repurchase 2nd highest full year Adjusted EBITDA and operating cash flow on record (1) Se
Slide 40: Demonstrating the Power of Our Cash Return Framework
RETURNING CASH TO SHAREHOLDERS Demonstrating the Power of Our Cash Return Framework ANNUAL PAYOUT OF ADJUSTED FAD 2021 = 79% 2022 = 75% $ in millions $509 $534 $1,459 $662 $100 $550 $2,068 $1,746 DIVIDEND YIELD – Calendar Year(2) 2021 3.6% 2022 6.6% Pro Forma 2023(3) 5.1% (1) Supplemental dividends
Slide 41: Targeting 5% Annual Base Dividend Growth
TARGETING 5% ANNUAL BASE DIVIDEND GROWTH Driven by Timberlands, Natural Climate Solutions & Performance Improvements (1) Assumes current quarterly base dividend of $0.19 per share. Future BASE dividend Outlook Timberlands Targeted acquisitions & Business Development Natural Climate Solutions ebitda
Slide 42: Capital Expenditures
CAPITAL EXPENDITURES Organic Investments to Sustain and Enhance Our Operations CAPITAL EXPENDITURES $ in millions Wood Products: $315 million in 2023 Maintenance capex is $150-200 million Projects to improve costs and reliability Strategic lumber mill modernization Timberlands: $110 million in 2023
Slide 43: Maintain an Appropriate Capital Structure
Maintain AN appropriate capital structure Operating from a Strong Financial Position with Significant Flexibility NET DEBT TO ADJUSTED EBITDA (LTM)(1) INVESTMENT GRADE CREDIT PROFILE Baa2 Moody’s AMPLE LIQUIDITY OPPORTUNISTIC LIABILITY MANAGEMENT STRONG ASSET COVERAGE OVER 80% of business assets are
Slide 44: Key Market Drivers
44 Current Market Dynamics Long-Term Demand Fundamentals Carbon Platform KEY MARKET DRIVERS
Slide 45: Current market dynamics for our products
LUMBER ORIENTED STRAND BOARD WESTERN LOGS SOUTHERN LOGS Current market dynamics for our products Improving sawlog demand WY fiber log demand generally stable Log pricing showing notable gains across several geographic sub-areas Emerging log export opportunity Solid demand from repair & remodel activ
Slide 46: Fundamental Drivers Shaping Our Industry
Rising Global Demand for Wood Fiber Increased Adoption of Wood-Based Building Increased Demand for Natural Climate Solutions Growing Demand for U.S. Housing 2 3 4 FUNDAMENTAL DRIVERS SHAPING OUR INDUSTRY We Are Well Positioned to Capitalize on These Opportunities 1
Slide 47: Our carbon platform
Our carbon platform Driving Long-Term Portfolio Value as Carbon Markets Develop LAND & FOREST Forest Carbon Offsets Renewable Energy Mitigation & Conservation SUBSURFACE Carbon Capture & Sequestration WOOD PRODUCTS Carbon Storage ENHANCING VALUE OVER TIME Underlying Timberlands Value Growing Cash Fl
Slide 48: Investment thesis
Weyerhaeuser Investment thesis Superior Shareholder Value Unmatched Portfolio Industry-Leading Performance Disciplined Capital Allocation 48 Strong ESG Foundation
Slide 49: Appendix: Additional Materials
APPENDIX 49 Additional Materials
Slide 50: Wood Products Sales Realizations: Current vs. 2023 Q2
Q3 QTD vs. Q2 AVERAGE +$15/MBF HIGHER CURRENT vs. Q2 AVERAGE -$35/MBF LOWER Q3 QTD vs. Q2 AVERAGE +$110/MSF HIGHER CURRENT vs. Q2 AVERAGE +$155/MSF HIGHER LUMBER(1) OSB(2) WOOD PRODUCTS SALES REALIZATIONS: CURRENT VS. 2023 Q2 WEYERHAEUSER’S AVERAGE SALES REALIZATIONS WY’s SENSITIVITY CHANGE IN REALI
Slide 51: Lumber Demand Fundamentals and Pricing
LUMBER DEMAND FUNDAMENTALS AND PRICING LUMBER PRICING FRAMING LUMBER COMPOSITE NORTH AMERICAN LUMBER CONSUMPTION BY END USE, 2022 Source: FEA Source: Random Lengths Q3 QTD as of 09/01/2023 Solid demand from repair and remodel activity New residential construction activity has remained resilient YTD
Slide 52: B.C. Mill Closures Have Reduced Industry Capacity
Log supply declining in British Columbia due to fires, pine beetle and lower allowable cut Canadian lumber exports to the U.S. remain subject to duties Canadian share of lumber market has decreased U.S. Southern lumber production gaining share NORTH AMERICAN CAPACITY(1) % SHARE BY REGION NORTH AMERI
Slide 53: OSB Demand Fundamentals and Pricing
OSB DEMAND FUNDAMENTALS AND PRICING New residential construction activity has remained resilient YTD Supportive long-term housing fundamentals Current pricing above historical pre-pandemic levels Source: FEA ORIENTED STRAND BOARD PRICING 7/16” NORTH CENTRAL NORTH AMERICAN OSB CONSUMPTION BY END USE,
Slide 54: Western Logs Market
Highly tensioned market, with domestic and export optionality Largest driver of demand is U.S. housing activity Steady Japanese demand for WY premium logs China has favorable longer-term import needs and faces constraints from suppliers in Europe and Russia WY able to rapidly flex China volume in re
Slide 55: Southern Logs: Improving Sawlog Demand
Sawlog demand improving as capacity and operating rates increase; WY’s timberlands are well positioned to benefit WY fiber log demand generally stable Log pricing showing notable gains across several geographic sub-areas Additional upside opportunity from Southern log exports SAWMILL CAPACITY ADDITI
Slide 56: NCREIF Timberland Index
NCREIF Timberland INDEX INDEXED MARKET VALUE Per Acre, by Region Source: National Council of Real Estate Investment Fiduciaries (NCREIF) Timberland Index. Changes in index composition may affect average market values (e.g. NCREIF Northwest expanded to include Idaho in 2013). Perpetually Growing Asse
Slide 57: Delivering Superior Relative Performance: Our OpX Scorecard
DELIVERING SUPERIOR RELATIVE PERFORMANCE Our OpX Scorecard LUMBER(4) ORIENTED STRAND BOARD(5) ENGINEERED WOOD PRODUCTS(6) DISTRIBUTION WOOD PRODUCTS ADJUSTED EBITDA MARGIN(1,3) Weyerhaeuser vs Peers Weyerhaeuser vs Peers Weyerhaeuser vs Peers Weyerhaeuser vs Peers TIMBERLANDS ADJUSTED EBITDA(1,2) PE
Slide 58: ESG Ratings and Indices
ESG RATINGS AND INDICES Leading Performance MSCI CDP Climate S&P Global Best-in-class performance among North American companies and peers Continuing to benchmark and enhance our performance Committed to achieving full recognition for our strong practices JUST CAPITAL named WY one of AMERICA’S MOST
Slide 59: Well-Laddered Debt Profile
WELL-LADDERED DEBT PROFILE $1,022 (1) Revolving credit facility was undrawn as of June 30, 2023. This credit facility has a capacity of $1.5 billion and expires in March 2028. $5.7 billion of long-term debt outstanding 100% fixed rate Weighted average maturity of 7 years Weighted average interest ra
Slide 60: Our Company Vision
OUR COMPANY VISION OUR VISION Working together to be the world’s premier timber, land, and forest products company HOW WE WIN WHAT IT LOOKS LIKE » WwW WEYERHAEUSER A TRULY GREAT COMPANY Safety Develop our people Integrity Wve operational [ia] Be = A excellence Citizenship Be courageous Deliver the m
Slide 61: Adjusted EBITDA reconciliation
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 62: Net Debt to Adjusted EBITDA reconciliation
$ Millions 2016 2016 2017 2018 2019 2020 2021 2022 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Debt to Adjusted EBITDA (LTM) (1,2,3) 5.3 3.7 3.6 3.3 2.9 2.5 2.5 2.2 2.5 3.0 3.3 3.9 4.7 4.9 4.5 4.1 2.9 2.3 1.5 0.9 0.7 0.8 0.9 0.8 0.8 1.0 1.7 2.2 Total
Slide 63: Adjusted EBITDA reconciliation by segment
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 64: Wood Products Adjusted EBITDA reconciliation
$ Millions 2011 2012 2013 2014 2015 2016(1) 2017 2018 2019 2020 2021 2022 Lumber ($7) $130 $317 $319 $212 $289 $459 $459 $183 $799 $1,630 $1,103 OSB (4) 143 247 46 41 183 359 329 59 466 1,292 879 EWP 6 17 45 79 114 145 173 177 207 188 285 585 Distribution (37) (29) (33) 2 10 25 38 32 33 86 176 184 O
Slide 65: Real Estate and ENR Adjusted EBITDA reconciliation
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 66: Adjusted EBITDA definition and Natural Climate Solutions
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Adjusted EBITDA should not be considered i
Slide 67: Adjusted Funds Available for Distribution (FAD) Reconciliation
ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION (FAD) RECONCILIATION $ Millions 2017 2018 2019 2020 2021 2022 Net cash from operations $1,201 $1,112 $966 $1,529 $3,159 $2,832 Capital expenditures (excluding discontinued operations) (419) (427) (384) (281) (441) (468) Funds Available for Distribution(1) $7