Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Investor Day (September 2021)
79 slides from Weyerhaeuser's investor day presentation, Sep 22, 2021
Slide 1: Driving Sustainable Growth and Superior Shareholder Returns
WEYERHAEUSER Driving Sustainable Growth and Superior Shareholder Returns Virtual Investor Day September 22, 2021 Exhibit 99.1
Slide 2: Agenda
AGENDA Devin Stockfish President and CEO Russell Hagen Chief Development Officer Nancy Loewe Chief Financial Officer 2
Slide 3: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES 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 following:
Slide 4: Strategic Overview
STRATEGIC OVERVIEW 4 Devin Stockfish | President & CEO
Slide 5: Weyerhaeuser Investment Thesis
WEYERHAEUSER INVESTMENT THESIS UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION + + Superior Shareholder Value +
Slide 6: Who We Are
WHO WE ARE A Tax-Efficient REIT With Three Industry-Leading Businesses WOOD PRODUCTS We are a scale, low-cost wood products manufacturer TIMBERLANDS We are the largest private timberland owner in North America REAL ESTATE, ENERGY & NATURAL RESOURCES We deliver the most value from every acre Approxim
Slide 7: Diverse Customer Mix and Integrated Operations
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 8: Our Competitive Advantage
QUALITY ASSETS DEEP EXPERTISE STRONG CULTURE Export Markets Integrated Supply Chain Technical Acumen Customer Relationships Strong Values People Development Operational Excellence Innovation FINANCIAL FLEXIBILITY SOLID REPUTATION Ethical, Sustainable Practices Reliable, Quality Products Community an
Slide 9: 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 10: Proven Performance: Our Progress Since 2020
WE FORMED A NEW Natural Climate Solutions Business Wind • Solar • Carbon Mitigation • Conservation WE SUSTAINABLY GREW TIMBERLANDS ADJUSTED EBITDA(1) BY $30 MILLION THROUGH STRATEGIC PORTFOLIO UPGRADES WE PAID DOWN >$1 BILLION IN DEBT WE LAUNCHED OUR NEW 3 BY 30 Sustainability Strategy Climate • Hom
Slide 11: 2025 Year-End Targets
DISCIPLINED INVESTMENTS OF $1 BILLION TO GROW OUR TIMBER PORTFOLIO $ $ $ $ UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION 75-80% of Adjusted FAD • Sustainable Base Dividend • Variable Supplemental Dividend • Share Repurchase 2025 YEAR-END TARGET
Slide 12: Weyerhaeuser Investment Thesis
WEYERHAEUSER INVESTMENT THESIS UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE DISCIPLINED CAPITAL ALLOCATION + + Superior Shareholder Value + STRONG ESG FOUNDATION
Slide 13: Strategic Growth & Business Development
STRATEGIC GROWTH & BUSINESS DEVELOPMENT Russell Hagen | Chief Development Officer 13
Slide 14: 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 15: U.S. Housing
U.S. HOUSING Strong Demographic Fundamentals and Significant Housing Deficit U.S. Housing Remains Underbuilt Favorable Demographics Sources: U.S. Census Bureau, FEA, Freddie Mac Renewed preference for single family homes, which use roughly 3x as much wood as multifamily units Gen Z and Millennials a
Slide 16: 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. GLOBAL CONSTRUCTION square footage will expand 50% by 2050
Slide 17: Rising Global Demand for Wood Fiber
RISING GLOBAL DEMAND FOR WOOD FIBER Ability to Meet Increased Softwood Demand Limited to a Few Regions U.S. WEST AND SOUTH ARE WELL-POSITIONED TO BENEFIT FROM DEMAND GROWTH Global Demand for Softwood Fiber EXPECTED TO GROW BY 25% Sources: Food and Agriculture Organization of the United Nations (FAO)
Slide 18: Natural Climate Solutions: Rising Demand
WEYERHAEUSER LAND & FORESTS ARE UNIQUELY POSITIONED TO PROVIDE NATURAL CLIMATE SOLUTIONS NATURAL CLIMATE SOLUTIONS Rising Demand for Climate Change Mitigation Sources: The Energy & Climate Intelligence Unit, Oxford Net Zero * In Purchasing Power Parity terms MORE THAN $70 TRILLION of global Assets U
Slide 19: Focused Growth Strategy
Serving Rising Demand for Net Zero Solutions Targeting $100 Million in EBITDA FOCUSED GROWTH STRATEGY Disciplined Approach to Drive Value Across Our Businesses by Year-End 2025 Investing Prudently to Serve Demand for Sustainable Building Products We Are Well-Positioned to Capitalize on Emerging Mark
Slide 20: Asset Value Optimization – Next Generation
PORTFOLIO ATTRIBUTES ASSET VALUE OPTIMIZATION – NEXT GENERATION Extending Industry-Leading Analytics & Expertise to Capture Full Value Technology-Enabled Approach Using Earth Observation Data and Artificial Intelligence
Slide 21: Natural Climate Solutions
Natural climate solutions 21
Slide 22: Natural Climate Solutions
NATURAL CLIMATE SOLUTIONS Leveraging Our Unmatched Scale Preserving Valuable Ecosystems Leasing Land for Wind and Solar Production MITIGATION & CONSERVATION RENEWABLE ENERGY FOREST CARBON CARBON CAPTURE & STORAGE Participating in the Emerging Offsets Market Growing Our Current Business Sub-Surface L
Slide 23: Building a $100 Million Business
23 BUILDING A $100 MILLION BUSINESS Growing EBITDA as Carbon Markets Develop Natural Climate Solutions Adjusted EBITDA(1) Targeting nearly $80 million of Adjusted EBITDA growth in Natural Climate Solutions Primary growth from new Forest Carbon and Carbon Capture and Storage (CCS) opportunities Also
Slide 24: Forest Carbon: Attributes of a High-Integrity Credit
FOREST CARBON Key Attributes of a High-Integrity Carbon Credit A transferable instrument certified by independent entities Real • Measurable Permanent • Additional Unique • Verified Additionality is a Key Principle One credit represents the reduction of 1 metric ton CO2e* Improved Forest Management
Slide 25: Forest Carbon: Two Types of Markets
FOREST CARBON Carbon Credits Are Sold in Two Types of Markets Demand Driver Market Maturity Complexity Landowner Constraint Examples Voluntary Market Offers Greater Opportunity
Slide 26: Voluntary Carbon Markets
VOLUNTARY CARBON MARKETS Addressable Market FORESTS CAN PLAY A LARGE ROLE in Growth of Voluntary Credit Markets 30% of Voluntary Credits Issued in 2020 were for FORESTRY & LAND USE PROJECTS CARBON CREDIT MARKETS ARE STILL RELATIVELY SMALL Compared With Net Zero Commitments Annual Global CREDIT ISSUA
Slide 27: Forest Carbon: Timber Productivity and Market Differences
FOREST CARBON Timber Productivity and Market Differences Influence Relative Appeal of Carbon Participation in carbon market will vary by landowner When carbon prices compete with timber prices, landowners may choose carbon Carbon markets offer opportunity for landowners to passively monetize timber
Slide 28: Forest Carbon: Path to Monetization
1 2 FOREST CARBON Path to Monetization MONETIZE CREDITS Transact strategically ASSESS PORTFOLIO FOR CARBON POTENTIAL Identify viable projects using existing 3rd-party standards PRIORITIZE PROJECTS Develop project scenarios, economics and timing OFFSETS ISSUED Project accepted by registry body and cr
Slide 29: Carbon Capture and Storage (CCS)
CARBON CAPTURE AND STORAGE (CCS) Supporting the Net Zero Pathway Through Carbon Sequestration Carbon Capture and Storage (CCS) captures CO2 at the source and transports it to a subsurface storage site WHAT IS CCS? SCALE OF POTENTIAL MARKET Forecasted CO2 Capture Capacity Significant Oil and Gas Indu
Slide 30: Carbon Capture and Storage: Uniquely Positioned
CARBON CAPTURE AND STORAGE Uniquely Positioned With Extensive Ownership Suitable for Geologic Sequestration Proprietary seismic and geologic data is a competitive advantage Development discussions in process with multiple parties Anticipate long-term lease and royalty agreements with fees based on t
Slide 31: Renewable Energy & Mitigation Banking
RENEWABLE ENERGY & MITIGATION BANKING Demand Rising to Support Economic Growth Source: IHS North American Power Outlook June 2021 6 operational wind sites in Pacific Northwest and Northeast Over 40 additional potential wind sites identified Exploration and development agreements covering 20,000 net
Slide 32: Timberlands
TIMBERLANDS 2lA
Slide 33: Timberlands Acquisitions and Optimization
TIMBERLANDS ACQUISITIONS AND OPTIMIZATION Proprietary Technology to Proactively Source and Evaluate Opportunities PURSUE Highest-Return Opportunities Identify Target Investment Zones EVALUATE Owners and Property Attributes Within Those Zones COMPARE and Prioritize Properties by Applying Local Expert
Slide 34: Western Timberlands Optimization
Western Timberlands Optimization DIVESTED 294,000 NON-STRATEGIC ACRES ACQUIRED 85,000 HIGH-VALUE ACRES IMMEDIATE & SUSTAINED EBITDA GROWTH Harvest and cash flow measures reflect forecasted 5-year annual averages. See appendix for definition of Adjusted EBITDA and reconciliation to GAAP amounts. Dive
Slide 35: Disciplined Investments of $1 Billion to Grow Timber Portfolio
DISCIPLINED INVESTMENTS OF $1 BILLION TO GROW OUR TIMBER PORTFOLIO 35 GOALS TO DRIVE GROWTH Enhancing Timberlands Portfolio Value by 2025 Generate near-term cash yields comparable to 2020-21 transactions leveraging WY scale and expertise Positioning portfolio through AVO 2.0 to deliver excess return
Slide 36: Timberlands Export Growth Strategy
TIMBERLANDS EXPORT GROWTH STRATEGY Capturing Growth in Emerging Markets Unrivaled Western export program Southern exports positioned to grow Targeting new geographies to expand markets Serving the growing demand for wood fiber, biomass, pellets Our Competitive Advantage in Export Markets Has Been Ac
Slide 37: Wood Products
WOOD PRODUCTS avlA
Slide 38: Wood Products: Prudent Investments to Serve Growing Demand
WOOD PRODUCTS Prudent Investments to Serve Growing Demand for Wood-Based Building Expanding production to serve growing demand Improving productivity and reliability of existing mills LUMBER ORIENTED STRAND BOARD ENGINEERED WOOD PRODUCTS DISTRIBUTION Optimizing production levels and mix as market de
Slide 39: Wood-Based Building: North American Lumber Demand
WOOD-BASED BUILDING Expect Significant Expansion in North American Lumber Demand Strong new residential demand, especially for single-family homes Repair & remodel spending to rise by nearly 25% with strong existing homes sales and aging housing stock Accelerated growth in wood-based commercial cons
Slide 40: Participation in Mass Timber Market
PARTICIPATION IN MASS TIMBER MARKET Our Businesses Are Well-Positioned As the Market Emerges and Forms Confidential - Board of Directors NORTH AMERICAN CROSS-LAMINATED TIMBER CAPACITY WEYERHAEUSER WOOD PRODUCTS MASS TIMBER PRODUCT USES Weyerhaeuser TIMBERLANDS Lumber Cross-Laminated Timber TimberStr
Slide 41: Expanding Capacity and Achieving Top Quartile Cost
EXPANDING CAPACITY AND ACHIEVING TOP QUARTILE COST STRATEGICALLY ENHANCING OUR LUMBER PORTFOLIO Cost Reduction and Organic Growth Through Brownfield Modernization Dierks, AR Modernization 400 MMBF COMPLETED 2018 (1) Annual improvement in controllable cost per thousand board feet produced, as of 2020
Slide 42: Goals to Drive Growth: Wood Products Portfolio Value
42 GOALS TO DRIVE GROWTH Enhancing Wood Products Portfolio Value by 2025 Holden modernization adds 100 MMBF in 2023 Capture full benefit of Millport capacity uplift Disciplined investments to improve mill reliability, productivity and cost LUMBER PRODUCTION TO GROW 5% ANNUALLY ON AVERAGE THROUGH 202
Slide 43: Focused Growth Strategy
Serving Rising Demand for Net Zero Solutions Targeting $100 Million in EBITDA FOCUSED GROWTH STRATEGY Disciplined Approach to Drive Value Across Our Businesses by Year-End 2025 Investing Prudently to Serve Demand for Sustainable Building Products We Are Well-Positioned to Capitalize on Emerging Mark
Slide 44: Achieving Industry-Leading Performance
ACHIEVING INDUSTRY-LEADING PERFORMANCE Devin Stockfish | President & CEO 44
Slide 45: Performance Improvement: Operational Excellence and Innovation
45 PERFORMANCE IMPROVEMENT Key Drivers: Operational Excellence and Innovation OPERATIONAL EXCELLENCE Superior Execution + Ongoing Improvement INNOVATION Accelerating Progress Through Innovation +
Slide 46: Operational Excellence
OPERATIONAL EXCELLENCE Delivering Sustainable Margin Improvement Through the Cycle SUSTAINABLE MARGIN IMPROVEMENT Our Ongoing Core OpX Focus EXPANDING OUR REACH WITH OPX 2.0 Finding Opportunity in Every Corner Future Value World Class Execution on Critical Activities That Generate Longer-Term Value
Slide 47: Innovation
INNOVATION Accelerating Our Performance and Creating Competitive Advantage Fully Mechanizing Steep-Slope Logging Driving Efficiencies With Automation & AI Using Drones to Boost Safety and Lower Cost Using automation and artificial intelligence to improve reliability, drive efficiencies and lower cos
Slide 48: Delivering Superior Relative Performance
DELIVERING SUPERIOR RELATIVE PERFORMANCE Industry-Leading Position ON TRACK TO DELIVER $50-75 MILLION IN OPX MARGIN IMPROVEMENT FOR 2021 OUR Western Timberlands Business BEST EBITDA PER ACRE OUR Distribution Business LARGEST MARGIN IMPROVEMENT Record Low-Cost Structure in Lumber & OSB Highest Adjust
Slide 49: Where We Are Headed
WHERE WE ARE HEADED Continued Focus on OpX to Maintain and Enhance Industry-Leading Performance Reduce Controllable Costs 10% in Lumber | 5% in Oriented Strand Board Improve Process Reliability Across All Manufacturing Lines Maintain Low-Cost Supply Chain Harvest & Transportation | Roads | Silvicult
Slide 50: ESG Update: Sustainability Ambitions & Carbon Record
ESG UPDATE: SUSTAINABILITY AMBITIONS & CARBON RECORD Nancy Loewe | Chief Financial Officer 50
Slide 51: Our Sustainability Strategy
For more information, view our alignment with key ESG frameworks, and visit www.wy.com/sustainability. HOW WE DO IT Our Sustainability Strategy Sustainability Is a Core Value Sustainability Is a Core Value CLIMATE HOMES COMMUNITIES WEYERHAEUSER SUSTAINABILITY AMBITIONS Working to Solve 3 BIG CHALLEN
Slide 52: We Have Made Considerable Progress
WE HAVE MADE CONSIDERABLE PROGRESS Selected Accomplishments in Each Core Area MAINTAIN ESG FOUNDATION Increased DE&I focus by refreshing inclusion strategy, hiring DE&I director, and enhancing disclosures Improved ESG reporting by aligning with the TCFD, SASB, and UN Sustainable Development Goals Fu
Slide 53: Our Working Forests Are Part of the Climate Solution
OUR WORKING FORESTS ARE PART OF THE CLIMATE SOLUTION An Endlessly Renewable Resource That Absorbs and Stores Carbon OUR GROWING FORESTS ABSORB CO2 OUR WOOD PRODUCTS STORE CARBON FROM THE ATMOSPHERE FOR THE LIFE OF THE PRODUCT WE PLANT MORE TREES THAT ABSORB EVEN MORE CO2 AS THEY GROW 53
Slide 54: Our Carbon Record
OUR CARBON RECORD Our Net Impact Is Significantly Carbon Negative OUR CARBON EMISSIONS 7 MILLION mtCO2e in 2020 OUR CARBON REMOVALS 32 MILLION mtCO2e in 2020 Our Carbon Removals Were Equivalent to Removing 7 Million Cars From the Road for One Year The world needs LESS OF THIS The world needs MORE OF
Slide 55: Our Carbon Record: Leading Our Sector in Disclosure
For more information on our carbon record methodology, please visit the 3 by 30: Climate Change section of our website. OUR CARBON RECORD Leading Our Sector in Disclosure and Methodology (1) Using a consistent spatial boundary to assess year-over-year change. (2) Allocation of overall net change bas
Slide 56: Carbon Stored in Our U.S. Timberlands
OUR CARBON RECORD Carbon Stored in Our U.S. Timberlands IN TOTAL, OUR FORESTS STORE BETWEEN 2.3 BILLION AND 3.6 BILLION mtCO2e That is the same number of emissions generated by providing every home in the United States with electricity for 3 to 5 years Downed wood, understory and forest floor Metric
Slide 57: Science-Based GHG Reduction Target
WE HAVE SET A SCIENCE-BASED GHG REDUCTION TARGET Aligned With Paris Agreement Goal of Limiting Global Warming to 1.5°C We Are on the Pathway to Net Zero Emissions by 2050 Submitted to Science Based Targets initiative (SBTi) for approval Reduce Scope 1 and 2 emissions 42% by 2030 primarily through en
Slide 58: ESG Ratings and Indices
ESG RATINGS AND INDICES Leading and Improving Performance MSCI (1) The S&P Global Corporate Sustainability Assessment (CSA) was formerly known as the Dow Jones Sustainability Index (DJSI). (2) Rating as of September 1, 2021. ISS QualityScore ratings are reported monthly. ISS QualitySCORE(2) (1=most
Slide 59: Capital Allocation
CAPITAL ALLOCATION Nancy Loewe | Chief Financial Officer 59
Slide 60: Disciplined Capital Allocation
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 61: 2020 and 2021 YTD Capital Allocation Actions
INVEST IN OUR BUSINESSES RETURN CASH TO SHAREHOLDERS MAINTAIN AN APPROPRIATE CAPITAL STRUCTURE IMPROVED PORTFOLIO PERFORMANCE AND VALUE through disciplined investments ACHIEVED STRONG FINANCIAL POSITION via significant debt paydown 2020 AND 2021 YTD ACTIONS ANNOUNCED NEW DIVIDEND FRAMEWORK in Octobe
Slide 62: Base Plus Variable Supplemental Dividend Framework
0 (1) See appendix for definition of Adjusted FAD and reconciliation to GAAP amounts. (2) Under some market conditions, Weyerhaeuser may also utilize opportunistic share repurchase to achieve a portion of its targeted return of 75-80% of Adjusted FAD. Quarterly cash base dividend of $0.17 per share
Slide 63: Capital Expenditures
CAPITAL EXPENDITURES Organic Investments to Sustain and Enhance Our Operations CAPITAL EXPENDITURES $ in millions Wood Products – $320 million in 2021 Maintenance capex is $150-200 million Projects to improve costs and reliability Strategic lumber mill modernization Timberlands – $125 million in 202
Slide 64: Maintain Appropriate Capital Structure
MAINTAIN APPROPRIATE CAPITAL STRUCTURE Operating from Strong Financial Position with Significant Flexibility Solid investment grade credit profile Reduced debt by $1.1 billion Well-Positioned to Invest in Value-Enhancing Growth Opportunities GROSS DEBT AND NET DEBT TO ADJUSTED EBITDA (LTM)(1) $1.8 b
Slide 65: Unprecedented Cash Flow Generation
UNPRECEDENTED CASH FLOW GENERATION Nearly $1.9 Billion of First-Half 2021 Adjusted FAD As of mid-year, $1.2 billion already earmarked for variable supplemental dividend Record Wood Products results Committed to Returning Cash to Shareholders FIRST-HALF 2021 CASH EARMARKED FOR SHAREHOLDER RETURN (1)
Slide 66: Declaring Interim Supplemental Dividend
DECLARING INTERIM SUPPLEMENTAL DIVIDEND One-Time Payment of $0.50 Per Share Payable on Oct. 19 to shareholders of record as of Oct. 5 Substantial earmark remains for 2022 Q1 supplemental dividend Accelerated return of cash following unprecedented cash flow generation Opportunity to capture one-time
Slide 67: Committed to Returning Cash to Shareholders
COMMITTED TO RETURNING CASH TO SHAREHOLDERS New Dividend Framework Generating Meaningful Payouts $ millions DIVIDENDS PAID PER COMMON SHARE Pro Forma 67 (1) Reflects current quarterly base dividend of $0.17 per share. (2) Second-half 2021 Adjusted FAD is expected to be lower than first-half 2021, pr
Slide 68: Targeting 5% Annual Base Dividend Growth
TARGETING 5% ANNUAL BASE DIVIDEND GROWTH Driven by Timberlands and Natural Climate Solutions (1) Assumes current quarterly base dividend of $0.17 per share. Timberlands: Targeted acquisitions & Business Development $0.68 2021 Pro Forma 2025 Outlook 2022 2023 2024 Current base dividend(1) Future BASE
Slide 69: Our Total Dividend Framework
OUR TOTAL DIVIDEND FRAMEWORK Appropriately Aligned With Cash Flow Generation Expect to Return Meaningful Amounts of Cash Across Market Cycles $ per share BASE AND VARIABLE SUPPLEMENTAL DIVIDEND POTENTIAL $0.68 Annual Base Dividend 2021 Pro Forma(1) Annual Base Dividend Increase 2022-2025 2025 Divide
Slide 70: $1 Billion Share Repurchase Authorization
$1 BILLION SHARE REPURCHASE AUTHORIZATION Authorized new $1 billion share repurchase program Replaces prior $500 million program, which had $414 million of authorization remaining Repurchased $26 million quarter to date at average price of $33.82 per share Will continue to deploy opportunistically a
Slide 71: Disciplined Capital Allocation
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 72: Closing Remarks
CLOSING REMARKS 72 Devin Stockfish | President & CEO
Slide 73: Today's Announcements and 2025 Year-End Targets
UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION + + + GROW OUR TIMBER PORTFOLIO with $1 BILLION of disciplined investments through 2025 GROW EBITDA FROM NATURAL CLIMATE SOLUTIONS to $100 MILLION by 2025 CAPTURE OPX of $175-250 MILLION across busi
Slide 74: Weyerhaeuser Investment Thesis
WEYERHAEUSER INVESTMENT THESIS UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION + + Superior Shareholder Value +
Slide 75: Appendix
APPENDIX blA
Slide 76: Proven Leadership Team
PROVEN LEADERSHIP TEAM Devin Stockfish President and CEO Russell Hagen Senior Vice President and Chief Development Officer Nancy Loewe Senior Vice President and Chief Financial Officer Keith O’Rear Senior Vice President, Wood Products Travis Keatley Senior Vice President, Timberlands Kristy Harlan S
Slide 77: Adjusted FAD Reconciliation
(1) Funds available for distribution (FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. FAD, as we define it, is net cash from operations adjusted for capital expenditures. FAD measures cash generated during the period net of capital expenditures) that is available
Slide 78: Net Debt to Adjusted EBITDA Reconciliation
(1) LTM = last twelve months. (2) Net debt to Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Net debt to Adjusted EBITDA, as we define it, is long-term debt and borrowings on line of credit, net of cash and cash equivalents divided by the last
Slide 79: Adjusted EBITDA Reconciliation
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 and special items. Adjusted EB