Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — NAREIT Annual Convention 2010
25 slides from Weyerhaeuser's conference presentation, Nov 19, 2010
Slide 1: Weyerhaeuser Company NAREIT Annual Convention – New York
WEYERHAEUSER COMPANY NAREIT Annual Convention – New York Exhibit 99.1
Slide 2: Forward-looking Statement
Forward-looking Statement This presentation contains statements concerning the company’s future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and may not be acc
Slide 3: Weyerhaeuser Overview: Electing REIT Status for 2010
Weyerhaeuser Company Timberlands (REIT) Taxable REIT Subsidiary Non-REIT Timber Business Wood Products Cellulose Fibers Weyerhaeuser Real Estate Company (WRECO) Weyerhaeuser Overview: Electing REIT Status for 2010 Minerals Lumber, OSB, Engineered Wood Products Over 6 million acres of timberlands Spe
Slide 4: Reasons to Own Weyerhaeuser
Reasons to Own Weyerhaeuser Valuable timberland holdings Leader in adding and extracting value from timberlands Uniquely positioned to benefit from the recovery Focused on returning value to shareholders TIMBERLAND-FOCUSED STRATEGY OPTIMIZED BY REIT STRUCTURE
Slide 5: Timberland Asset
Timberland Asset Timberlands Acres (000) % US West US South Uruguay China JV Total Over 6.5 million acres of timberlands Over 7 million acres of mineral rights Does not include 15.2 million acres of forestland under license in Canada Core 1,850 3,720 5,956 90.7% Non-Core - - 9.3% TOTAL 2,063 4,114 6
Slide 6: More Than Two Million Acres of Valuable Timberlands in the US West
More Than Two Million Acres of Valuable Timberlands in the US West 76% Douglas fir / Cedar 18% Whitewood State Acres in Thousands* 1% Other Conifer Douglas fir – most desired, highest value species Harvest 93%+ Sawlogs Major log exporter to Asia US West 5% Hardwood Oregon Washington 1,099 * Total In
Slide 7: More Than Four Million Acres of Valuable Timberlands in the US South
76% Southern Yellow Pine More Than Four Million Acres of Valuable Timberlands in the US South State Acres in Thousands* 24% Hardwood Southern yellow pine – most desired/highest-valued species Harvest 60%+ Sawlogs, increasing to 65% over the next five years Alabama Arkansas Louisiana 1,031 Mississipp
Slide 8: Timberland Strategy
Timberland Strategy Generate high returns on sustainably managed forests Timberland focused on saw timber – generates the highest operating values Proprietary silviculture practices generate highest return from timberland Scale operations create cost advantage Capture additional value from timberlan
Slide 9: Positive Outlook for US Timber Values
Positive Outlook for US Timber Values Saw timber demand expected to grow Driven by housing starts returning to trend Shortfall in future Canadian harvest due to pine beetle infestation Canada has historically provided approximately one third of US lumber supply Export market remains strong and likel
Slide 10: Weyerhaeuser Positioned to Capitalize on Attractive Timberland Outlook
Weyerhaeuser Positioned to Capitalize on Attractive Timberland Outlook Saw timber focused Proprietary silviculture practices result in greater productivity and margin Scale and logistics provide cost advantage Export log market capability Additional value from minerals, oil & gas, environmental bene
Slide 11: Weyerhaeuser Positioned to Capture Benefits
Weyerhaeuser Positioned to Capture Benefits Harvest expected to increase 71% (2009 – 2019) Cash flow driven by increased harvest volume, mix and price recovery Harvest will be adjusted to demand levels Weyerhaeuser Global Fee Harvest Volume International North America Fee Acres Owned Information as
Slide 12: Taxable REIT Subsidiary Strategy
Taxable REIT Subsidiary Strategy TRS will: Service company debt and legacy liabilities Support the dividend Businesses Non-REIT Timberland activities Wood Products Cellulose Fibers Single-family homebuilding: WRECO
Slide 13: Wood Products
Wood Products 40% 18% 4% 9% 19% 2009 Net Sales of $2.2 Billion (Net Sales thru Q3 2010 of $2.0 billion) 10% Softwood Lumber Engineered Solid Section & I-Joists Oriented Strand Board Plywood Hardwood Lumber Other Products Manufactured or Purchased for Resale
Slide 14: Cellulose Fibers
Cellulose Fibers 42% 19% 5% 20% 14% Fluff Pulp for Disposable Hygiene Products Pulp for Premium Towel & Tissue Liquid Packaging Board Specialty Chemical Cellulose Pulp Other Products 2009 Net Sales of $1.5 Billion (Net Sales thru Q3 2010 of $1.4 billion)
Slide 15: Quadrant Homes / Winchester Homes
QUADRANT HOMES | 3 i = \y WINCHESTER Homes
Slide 16: Substantial Near-Term Liquidity
Substantial Near-Term Liquidity Cash Balance Q3 2010 (After Special Dividend payment) $1.37 billion Bank Revolving Credit Facility (Expires 12/2011) $1.0 billion
Slide 17: Long-Term Obligations
Long-Term Obligations 2010 2011 2012 2013 2014 2017-2033 Total Debt 3Q 2010 $5.1 billion $40 $30 $ 732 $409 $15 $3,891 Debt Maturity Schedule ($ millions) Other long-term obligations(pension, other post employment benefits)
Slide 18: Dividend Considerations
Dividend Considerations Macroeconomic climate Earning potential of the company Target capital structure Appropriate debt levels Long term liquidity Maintaining access to capital Affordability Future growth opportunities Guidance to be provided in December 2010
Slide 19: Reasons to Own Weyerhaeuser
Reasons to Own Weyerhaeuser Valuable timberland holdings Leader in adding and extracting value from timberlands Uniquely positioned to benefit from the recovery Focused on returning value to shareholders TIMBERLAND-FOCUSED STRATEGY OPTIMIZED BY REIT STRUCTURE
Slide 20: Questions?
Questions?
Slide 21: Appendix
Appendix
Slide 22: Earnings Summary
Earnings Summary $ Millions except EPS 2009 2010 Contribution to Earnings Q1 Q2 Q3 Q4 Q1 Q2 Q3 Timberlands $40 $71 $58 $28 $81 $70 $75 Wood Products (176) (147) (92) (123) (63) (11) (100) Cellulose Fibers (7) Real Estate (24) (9) Corporate and Other (14) (11) Total Contribution to Earnings before Sp
Slide 23: Special Dividend Summary
Special Dividend Summary $5.6 billion special dividend paid on September 1 $560 million in cash distributed 324.3 million common shares issued 535.9 million total common shares now outstanding Shareholders who elected cash received over 15% of the dividend in cash
Slide 24: Third Quarter Accounting Impact of Special Dividend Distribution
Third Quarter Accounting Impact of Special Dividend Distribution Changes to balance sheet Cash reduced by $560 million Deferred tax liability reduced by approximately $1.0 billion Shareholders’ equity increased by $440 million Changes to income statement Tax benefit of $1.0 billion, as a result of t
Slide 25: Reconciliation of Changes in Share Count
Reconciliation of Changes in Share Count Explanation of 2010 Q3 Ending Share Count (millions) Share Count Used in Calculation of 2010 Q3 EPS (millions) 1 On Sept. 1, 2010, Weyerhaeuser paid a previously announced special dividend consisting of approximately 324 million shares of common stock and $56