Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — UBS Global Paper and Forest Products Conference 2011
18 slides from Weyerhaeuser's conference presentation, Sep 16, 2011
Slide 1: Weyerhaeuser Company UBS Global Paper and Forest Products Conference
WEYERHAEUSER COMPANY UBS GLOBAL PAPER AND FOREST PRODUCTS CONFERENCE New York, NY September 15, 2011
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: Introduction
INTRODUCTION Dan Fulton President and Chief Executive Officer 3
Slide 4: Weyerhaeuser Overview
WEYERHAEUSER OVERVIEW Weyerhaeuser Company Timberlands (REIT) Over 6 million acres of timberlands Taxable REIT Subsidiary Non-REIT Timber Business Minerals and other non-qualifying activities Wood Products Lumber, OSB, Engineered Wood Products Weyerhaeuser Real Estate Company (WRECO) Single Family H
Slide 5: Timberlands Strategy
TIMBERLANDS STRATEGY Grow and manage financially attractive, sustainable forests Apply market knowledge and scale to create additional value Explore opportunities for future growth Increase cash flow and asset value 5
Slide 6: Competitive Advantage of Weyerhaeuser Timberlands
COMPETITIVE ADVANTAGE OF WEYERHAEUSER TIMBERLANDS World class timberland holdings Managed for optimum value by reducing costs and increasing yield Innovative silviculture - precision landscape forestry Focus on high value sawlogs Cost-advantaged infrastructure and logistics capabilities Broad access
Slide 7: U.S. Timberlands in Most Productive Regions
U.S. TIMBERLANDS IN MOST PRODUCTIVE REGIONS Approximately 2 million acres west of the Cascade Mountains, primarily high value Douglas fir Over 4 million acres in 7 states across the U.S. South, primarily loblolly pine US West US South 7
Slide 8: Innovative Forestry Maximizes Returns
INNOVATIVE FORESTRY MAXIMIZES RETURNS Silviculture practices enable us to grow high-quality sawtimber faster at lower cost 8
Slide 9: Scale Infrastructure and Logistics Provide Cost Advantages
SCALE INFRASTRUCTURE AND LOGISTICS PROVIDE COST ADVANTAGES Harvesting Merchandising Hauling / dispatch trucking Strategically located, Weyerhaeuser-owned port facilities Efficiently reach broad mix of domestic and international markets 9
Slide 10: Uniquely Advantaged to Serve Asian Export Markets
UNIQUELY ADVANTAGED TO SERVE ASIAN EXPORT MARKETS One port to one port loading 19% of timberlands revenue from export log sales Japan is a premium market for Weyerhaeuser logs China represents an increasingly large and attractive opportunity Long-standing customer relationships 2010 Export Log Reven
Slide 11: Additional Sources of Value from Timberlands
ADDITIONAL SOURCES OF VALUE FROM TIMBERLANDS 7.1 million net mineral acres Oil and gas $30-50 million annual business Revenue interest in >1,000 producing wells Haynesville Shale (LA) ~12,000 acres under lease in core Aggregates and minerals $10+ million annual business Economic downturn affected 20
Slide 12: Sustainability Creates Value
SUSTAINABILITY CREATES VALUE 12
Slide 13: Business Conditions and Financial Update
BUSINESS CONDITIONS AND FINANCIAL UPDATE Patty Bedient Executive Vice President, and Chief Financial Officer 13
Slide 14: Business Conditions
BUSINESS CONDITIONS Timberlands Export log markets still strong Domestic log markets remain soft Wood Products Markets remain challenged Weyerhaeuser Real Estate Company (WRECO) Profitable despite weak housing markets Cellulose Fibers Uncertainty in global markets U.S. dollar strengthening 14
Slide 15: Dividend Payout Policy
DIVIDEND PAYOUT POLICY Targeting a dividend payout ratio of 75% of Funds Available for Distribution (FAD) over cycle FAD defined as cash flow before debt repayment and dividends Will consider repurchasing shares Current quarterly dividend of 15 cents per share, or 60 cents per share on annualized ba
Slide 16: Strong Liquidity and Improving Capital Structure
STRONG LIQUIDITY AND IMPROVING CAPITAL STRUCTURE Cash balance as of 6/30/2011: ~$880 million New 4-year billion dollar credit facility – no outstanding borrowings 2011 2012 2013 2014 2015-2016 Maturities 199 409 15 0 Ending Debt Balances $4,509 $4,310 $3,901 $3,886 $3,886 Strong capital structure su
Slide 17: Reasons to Own Weyerhaeuser
REASONS TO OWN WEYERHAEUSER World class timberland holdings Leader in extracting value from timberlands Cash and earnings expected to significantly improve throughout housing recovery Committed to a sustainable dividend that we expect to grow over time Opportunistic growth in timberland holdings Com
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