Plum Creek Timber Company. Inc
Plum Creek Timber — Merger or Acquisition (November 2015)
19 slides from Plum Creek Timber's merger presentation, Nov 9, 2015
Slide 1: Creating the World's Premier Timber, Land & Forest Products Company
Creating the World’s Premier Timber, Land & Forest Products Company WEYERHAEUSER & PLUM CREEK MERGER Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, with respect to Weyerhaeuser’s and Plum Creek’s future resul
Slide 3: Legends: No Offer or Solicitation
LEGENDS NO OFFER OR SOLICITATION This communication is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, no
Slide 4: Participants
PARTICIPANTS Rick R. Holley Chief Executive Officer Doyle R. Simons Chief Executive Officer
Slide 5: Strategic Announcements
STRATEGIC ANNOUNCEMENTS Weyerhaeuser and Plum Creek to merge Strategic review of Weyerhaeuser’s Cellulose Fibers business
Slide 6: The Industry Leader
THE INDUSTRY LEADER More than 13 million acres of diverse and productive timberland Largest private timberland owner in the South and Pacific Northwest Best practices and economies of scale drive enhanced performance Uniquely positioned to capitalize on housing recovery Ability to further leverage H
Slide 7: Merger Summary
Merger Structure Stock-for-stock merger: 1.60 WY shares issued for each PCL share Implied premium: 13.8% to the 30-trading-day VWAP ratio of PCL:WY* Pro forma ownership: WY shareholders (65%) and PCL shareholders (35%) Timing: Expected to close in late first quarter or early second quarter of 2016 A
Slide 8: Focused Portfolio
Focused Portfolio Creates the world’s premier timber, land & forest products company More than 13 million acres of productive and diverse timberlands Combines #1 and #2 land holdings in the U.S. South Largest private timberland owner in the U.S. Leading forest products manufacturing operations Revie
Slide 9: Combining the Two Industry Leaders
COMBINING THE TWO INDUSTRY LEADERS Equity Market Cap $16 billion $7 billion $23 billion* Total Acreage** 6.9 million acres 6.3 million acres 13.2 million acres EBITDA*** $1.6 billion $0.6 billion $2.2 billion Credit Rating Investment Grade Investment Grade Committed to Investment Grade COMBINED Crea
Slide 10: Unparalleled Scale in Timberland Ownership
UNPARALLELED SCALE IN TIMBERLAND OWNERSHIP Weyerhaeuser Plum Creek COMBINED ACREAGE MORE THAN 13 MILLION ACRES* *Includes 0.3 million acres in Uruguay. Acreage based on pro forma ownership as of 9-30-15
Slide 11: Diverse and Productive Timberlands
DIVERSE AND PRODUCTIVE TIMBERLANDS PACIFIC NORTHWEST High-value softwood saw logs, mostly Douglas fir Primarily serves West Coast housing and Asian export markets NORTHERN REGION Mixed hardwoods High-value hardwood sawlog & pulpwood markets Inland West softwood sawlogs URUGUAY Fast-growing eucalyptu
Slide 12: Delivering the Highest Value of Every Acre
DELIVERING THE HIGHEST VALUE OF EVERY ACRE TIMBER VALUE Provide unmatched scale and diversity Enhance productivity through advanced silviculture Optimize logistics and marketing Continue best-in-class sustainable resource management RURAL & DEVELOPMENT LAND VALUE Capture premium recreation & conserv
Slide 13: Leading Wood Products Manufacturing
LEADING WOOD PRODUCTS MANUFACTURING Continued improvement through operational excellence Well-positioned to benefit from improving housing markets 18 lumber mills 6 OSB mills 6 engineered wood mills 21 distribution centers 3 veneer / plywood facilities 2 lumber mills 2 plywood facilities 1 medium de
Slide 14: Compelling Synergies
COMPELLING SYNERGIES $100 million of cost synergies Primarily corporate and operating overhead cost savings Run rate achieved by end of first full year Additional synergies from: Best practice sharing across the portfolio Increased harvest and fulfillment optimization and flexibility Operational exc
Slide 15: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Return cash to shareholders Growing and sustainable dividend Share repurchase Invest in our businesses Deliver the highest return on every acre Reduce manufacturing cost structure Maintain appropriate capital structure Continued Commitment to Superior Capital Allocatio
Slide 16: Financing Strategy
FINANCING STRATEGY No financing needed to close the merger Shortly after closing, WY will execute a $2.5 billion share repurchase Substantially all of the $2.5 billion share repurchase is expected to be completed via accelerated share repurchase Will result in a net financial impact on the company t
Slide 17: Management Team
MANAGEMENT TEAM Doyle Simons President & Chief Executive Officer Tom Lindquist EVP, Real Estate, Energy & Natural Resources Rhonda Hunter SVP, Timberlands Adrian Blocker SVP, Wood Products Tim Punke SVP, Corporate Affairs Denise Merle SVP, Human Resources Russell Hagen SVP, Chief Financial Officer D
Slide 18: Cellulose Fibers: Strategic Alternatives
CELLULOSE FIBERS: STRATEGIC ALTERNATIVES Maximizing the Value of the Cellulose Fibers Business for Shareholders Weyerhaeuser board authorized exploration of strategic alternatives for Cellulose Fibers business Weyerhaeuser’s Cellulose Fibers business is one of the world’s largest producers of absorb
Slide 19: The Industry Leader
THE INDUSTRY LEADER More than 13 million acres of diverse and productive timberland Largest private timberland owner in the South and Pacific Northwest Best practices and economies of scale drive enhanced performance Uniquely positioned to capitalize on housing recovery Ability to further leverage H
Plum Creek Timber — Merger or Acquisition (November 2015) on 6ix