Slide 1: Weyerhaeuser Investor Presentation December 2021
WEYERHAEUSER Investor Presentation December 2021 Exhibit 99.1
Slide 2: Forward-looking statements
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: future goals and prospects; business strategies; facto
Slide 3: Weyerhaeuser Investment Thesis
UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION + + Superior Shareholder Value + WEYERHAEUSER INVESTMENT THESIS
Slide 4: Recent 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 5: 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 5
Slide 6: Unmatched Portfolio
UNMATCHED PORTFOLIO Our Quality, Diversity and Scale Cannot Be Replicated 6
Slide 7: 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 8: How We Do It
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: 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 10: Our Carbon Record
OUR CARBON RECORD Our Net Impact Is Significantly Carbon Negative Metric tons of carbon dioxide equivalent (mtCO2e) for full year 2020. 32 MILLION mtCO2e in 2020 The world needs MORE OF THIS The world needs LESS OF THIS WE HAVE SET A SCIENCE-BASED GHG REDUCTION TARGET Aligned with 1.5° Celsius scena
Slide 11: Superior Holdings Create Value Today and Tomorrow
SUPERIOR HOLDINGS CREATE VALUE TODAY AND TOMORROW Unrivaled portfolio that cannot be replicated Diversified holdings at scale Superior supply chain Enduring value across market cycles Enhancing portfolio value through disciplined investments Unmatched timber-growing expertise TIMBERLANDS 11
Slide 12: Our Timberlands Portfolio
(1) See appendix for reconciliation to GAAP amounts and definition of Adjusted EBITDA. Other is excluded. Approximate total acres as of September 22, 2021. High value Douglas fir Premium land west of the Cascade mountains Sawlogs are approximately 90% of harvest Unique Japan export presence Premium
Slide 13: Timberlands Customers
THIRD-PARTY DOMESTIC CUSTOMERS WEYERHAEUSER MILLS EXPORT CUSTOMERS TIMBERLANDS REVENUE BY END MARKET (2020) We Flex Supply To Meet Dynamic Customer Demands and Capture Market Opportunities TIMBERLANDS CUSTOMERS Capture Full Value Through a Diverse Customer Mix 13
Slide 14: Timberlands Export Markets
Percentages based on 2020 full year Timberlands export sales. UNIQUE JAPAN BUSINESS Multi-decade relationships supplying steady post & beam housing market Western timberlands ownership provides premium logs at unrivaled scale Largest log export facility in North America creates substantial supply ch
Slide 15: Timberlands Enduring Value Across Market Cycles
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 16: Recent Strategic Portfolio Upgrades
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. Divestitures include southern Oregon (2020) and North Cascades Washington (2021). (3) Acquisitions include
Slide 17: Disciplined Investments to Grow Timber Portfolio
DISCIPLINED INVESTMENTS OF $1 BILLION TO GROW OUR TIMBER PORTFOLIO 17 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 18: Maximize the Value of Every Acre We Own
MAXIMIZE THE VALUE OF EVERY ACRE WE OWN REAL ESTATE, ENERGY & NATURAL RESOURCES Continually evaluate every acre Deliver a significant premium to timber value Serve rising demand for natural climate solutions Capture the full value of surface and subsurface assets Generate consistent and reliable cas
Slide 19: Real Estate: Unlock Higher and Better Use Value
REAL ESTATE Unlock Higher and Better Use (HBU) Value Nimble Business Model Low Operating Costs Minimal Capital Investment 1.3 MILLION ACRES with HBU attributes CONTINUALLY EVALUATE every acre ≤1% of timberland acres SOLD ANNUALLY 55–80% Premium to Timber Value SINCE INCEPTION consistently exceeding
Slide 20: Energy & Natural Resources
ENERGY & NATURAL RESOURCES Maximize the Value of Surface and Subsurface Rights EBITDA MIX (1) Infrastructure Rights of Way Wind and Solar Power Wetland Mitigation Banks Aggregates & Industrial Materials Oil & Natural Gas Oil & Natural Gas Wind, Solar & Other Aggregates & Industrial Materials Cell To
Slide 21: 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 Subsurface Le
Slide 22: Building a $100 Million Natural Climate Solutions Business
22 BUILDING A $100 MILLION NATURAL CLIMATE SOLUTIONS 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
Slide 23: Real Estate, Energy & Natural Resources
Consistent, Reliable Cash Generation – Growing Natural Climate Solutions (1) See appendix for reconciliation to GAAP amounts. The quantity of real estate HBU property was reduced by divestitures of the company’s Michigan and Montana timberlands in 2019 and 2020, respectively. Adjusted EBITDA(1) $ in
Slide 24: Wood Products: Maximizing Margin Through the Business Cycle
WOOD PRODUCTS 24 MAXIMIZING MARGIN THROUGH THE BUSINESS CYCLE Unmatched scale, brand and reputation Diversified mix of high-quality products Relentless focus on industry-leading cost structure Diverse customer mix and demand drivers Superior returns through the cycle: “Black at the bottom” Organical
Slide 25: Wood Products Assets and Capabilities
LUMBER ORIENTED STRAND BOARD ENGINEERED WOOD PRODUCTS DISTRIBUTION 2nd largest producer in North America 19 lumber mills 5.2 BBF capacity 4th largest producer in North America 6 oriented strand board mills 3.1 BSF capacity Located in the largest homebuilding markets 18 distribution centers Adjusted
Slide 26: Wood Products Demand Drivers and Customer Mix
NEW RESIDENTIAL: SINGLE & MULTI-FAMILY REPAIR & REMODEL: PROFESSIONAL AND DIY PERCENT OF SALES BY END MARKET (2020) NON-RESIDENTIAL CONSTRUCTION, INDUSTRIAL AND OTHER USES WOOD PRODUCTS Diverse Demand Drivers and Customer Mix Percentages are approximate based on 2020 full year Wood Products net sale
Slide 27: Record Low-Cost Structure
$ in millions Delivering and Maintaining Record Low-Cost Structure Improved EWP & Distribution EBITDA Through Market Headwinds ADJUSTED EBITDA(1) Positioned for Superior Performance Through the Cycle Cost Net of Logs/MBF Indexed to 2013 Controllable Cost/M38 Indexed to 2013 Lumber OSB WOOD PRODUCTS
Slide 28: 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 29: Prudent Investments to Serve Growing Demand
WOOD PRODUCTS Prudent Investments to Serve Growing Demand for Wood-Based Building Growing production by 5% annually through 2025(1) Improving productivity and reliability of existing mills LUMBER ORIENTED STRAND BOARD ENGINEERED WOOD PRODUCTS DISTRIBUTION Optimizing production levels and mix as mark
Slide 30: Industry-Leading Performance
INDUSTRY-LEADING PERFORMANCE Significant, Sustainable Margin Improvement Through the Cycle 30
Slide 31: 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 32: 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 33: Where We Are Headed: OpX Targets
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 34: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Long-Term Commitment to Balancing Three Key Priorities 34
Slide 35: Balanced and Sustainable 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 36: 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 37: Unprecedented Cash Flow Generation
UNPRECEDENTED CASH FLOW GENERATION More than $2.4 Billion of Year-to-Date Adjusted FAD Substantial earmark remains for 2022 Q1 variable supplemental dividend Record Wood Products results Committed to Returning Cash to Shareholders 2021 YTD CASH EARMARKED FOR SHAREHOLDER RETURN (1) Through Q3 2021. S
Slide 38: 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 39: 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 40: $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 in 2021 Q3 at average price of $33.82 per share Will continue to deploy opportunistically as par
Slide 41: 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 42: Maintain an Appropriate Capital Structure
Maintain AN appropriate capital structure Operating from Strong Financial Position with Significant Flexibility NET DEBT TO ADJUSTED EBITDA (LTM)(1) 3.5x INVESTMENT GRADE CREDIT PROFILE Baa2 Moody’s BBB Standard & Poor’s AMPLE LIQUIDITY OPPORTUNISTIC LIABILITY MGMT STRONG ASSET COVERAGE Nearly 85% o
Slide 43: Market Dynamics for Our Products
LUMBER ORIENTED STRAND BOARD WESTERN LOGS SOUTHERN LOGS market dynamics for our products Improving sawlog demand Fiber log demand generally stable Log pricing showing notable gains across several geographic sub-areas Emerging log export opportunity Increasing demand from residential construction act
Slide 44: Weyerhaeuser Investment Thesis
WEYERHAEUSER INVESTMENT THESIS UNMATCHED PORTFOLIO INDUSTRY-LEADING PERFORMANCE STRONG ESG FOUNDATION DISCIPLINED CAPITAL ALLOCATION + + Superior Shareholder Value +
Slide 45: Appendix: Market Overview and Supplemental Information
APPENDIX Market Overview and Supplemental Information 45
Slide 46: 2021 Q4 Outlook Update
42% Reduction vs. 2020 Adverse weather conditions in British Columbia have resulted in operational and transportation disruptions, including: Approximately one week of downtime at Princeton lumber mill Lower regional sales volumes, primarily for lumber and OSB We now expect OSB sales volumes to be c
Slide 47: Expect Long-Term Growth in U.S. Housing
Generation Z and Millennials are the largest population cohort, and entering peak homebuying years Renewed preference for single family homes, which use roughly 3x as much wood as multifamily units Current homebuilding rates will not fully address current deficit of 4 million homes Low mortgage rate
Slide 48: Strong Repair & Remodel Activity
STRONG REPAIR & REMODEL ACTIVITY Strong repair & remodel spending, including larger professional built projects and steady do-it-yourself activity Housing stock continues to age, with median age greater than 40 years Rising home equity U.S. HOUSING STOCK MEDIAN AGE OF OWNER-OCCUPIED HOMES U.S. RETAI
Slide 49: Lumber Demand and Fundamentals Are Favorable
LUMBER DEMAND AND FUNDAMENTALS ARE FAVORABLE LUMBER PRICING FRAMING LUMBER COMPOSITE NORTH AMERICAN LUMBER CONSUMPTION BY END USE, 2020 Source: FEA Source: Random Lengths Q4 QTD as of 12/10/2021 Strong new residential construction activity and solid home improvement demand Expect 17% increase in Nor
Slide 50: 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 Source: WWPA Billion board feet ANNUAL CHANGE IN LUMBER
Slide 51: OSB Market Fundamentals Are Positive
OSB MARKET FUNDAMENTALS ARE POSITIVE Strong demand from new residential construction activity Favorable industry operating rates Current pricing above historic levels Source: FEA ORIENTED STRAND BOARD PRICING 7/16” NORTH CENTRAL NORTH AMERICAN OSB CONSUMPTION BY END USE, 2020 Source: Random Lengths
Slide 52: Western Logs
Largest driver of demand is growing U.S. housing activity Favorable Japanese demand for premium logs Solid Chinese demand, with European and Australian supply challenges Able to rapidly flex volume in response to changing markets JAPAN HOUSING STARTS WOOD-BASED WESTERN SAWLOG PRICING DELIVERED DOUGL
Slide 53: Southern Logs
Sawlog demand improving as capacity and operating rates increase WY fiber log demand stable WY’s timberlands are well-positioned to benefit from rising lumber production and capacity across the South Additional upside opportunity from Southern log exports SAWMILL CAPACITY ADDITIONS ANNOUNCED BY STAT
Slide 54: Strong ESG Foundation: Environment
100% OF OUR TIMBERLANDS ARE REFORESTED AFTER HARVEST WE PLANT ABOUT 140-150 MILLION TREES EACH YEAR Sustainable Forestry • Carbon Sequestration • Reduced Environmental Footprint WE PARTICIPATE IN 11 HABITAT CONSERVATION PLANS IN NORTH AMERICA WE HARVEST ONLY 2% of our forests each year 99% OF OUR WA
Slide 55: Social Responsibility and Corporate Governance
GOVERNANCE HUMAN CAPITAL MANAGEMENT 94% OF ALL SALARIED EMPLOYEES HAVE AN INDIVIDUAL DEVELOPMENT PLAN WE DRIVE SIGNIFICANT SAFETY IMPROVEMENT WE DELIVER FACILITATOR-LED UNCONSCIOUS BIAS TRAINING TO ALL SALARIED EMPLOYEES ETHISPHERE NAMED WY ONE OF THE WORLD’S MOST ETHICAL COMPANIES® FOR THE 12TH TIM
Slide 56: ESG Ratings and Indices
ESG RATINGS AND INDICES Leading and Improving Performance MSCI ISS QualitySCORE(2) (1=most favorable) Continuing to benchmark and enhance our performance Committed to achieving full recognition for our strong practices Best-in-class performance among North American companies and peers OTHER EXTERNAL
Slide 57: We Are Black at the Bottom
We are “Black at the Bottom” TIMBERLANDS ADJUSTED EBITDA(1,2) PER ACRE WEST LUMBER(4) ORIENTED STRAND BOARD SOUTH ENGINEERED WOOD PRODUCTS DISTRIBUTION Source for competitor data: public SEC filings, National Council of Real Estate Investment Fiduciaries (NCREIF). Results include only North American
Slide 58: Dividend Framework is Sustainable Over the Business Cycle
SUSTAINABLE BASE DIVIDEND supported by Timberlands and Real Estate & ENR cash flow, even at bottom of the cycle SUPPLEMENTAL DIVIDEND or share repurchase to achieve targeted return of 75-80% of annual Adjusted FAD EXCESS CASH above 75-80% of Adjusted FAD available for growth, debt paydown and additi
Slide 59: Well-Laddered Debt Profile
WELL-LADDERED DEBT PROFILE No Maturities Until 2023 (1) $860 million WestRock note maturing 2023 includes extension option. Revolving credit facility was undrawn as of September 30, 2021. This credit facility has a capacity of $1.5 billion and expires in January 2025. $5.1 billion of long-term debt
Slide 60: Our Company Vision
OUR COMPANY VISION OUR VISION > tintertandand forest satery Integrity Ciizensip Sstainabity RELENTLESS Foc Develop our people Drive operationst | Delve the most value optimize capital the world's premier products company WEYERHAEUSER tainable, versatile reso experts at using trees to make products p
Slide 61: Adjusted EBITDA Reconciliation: Total Company
(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
(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 63: Adjusted EBITDA Reconciliation: Timberlands
(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: Adjusted EBITDA Reconciliation: Wood Products
(1) Amounts presented reflect the results of operations acquired in our merger with Plum Creek Timber, Inc. beginning on the merger date of February 19, 2016. (2) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it,
Slide 65: Adjusted EBITDA Reconciliation: Real Estate, Energy & Natural Resources
(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 Forecast Notes
(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 FAD Reconciliation
ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION (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 d