Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — UBS Global Paper and Forest Products Conference 2010
23 slides from Weyerhaeuser's conference presentation, Sep 20, 2010
Slide 1: UBS Global Paper and Forest Products Conference
WEYERHAEUSER COMPANY September 14, 2010 Exhibit 99.1 UBS Global Paper and Forest Products Conference
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: Dan Fulton, President and Chief Executive Officer
Dan Fulton President and Chief Executive Officer
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: 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 7: 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 8: Weyerhaeuser Positioned to Capture Benefits
Weyerhaeuser Positioned to Capture Benefits Harvest expected to increase 71% (2009 – 2019) US will rise 60%; international to increase 4-fold Cash flow driven by increased harvest volume, mix and price recovery Weyerhaeuser Global Fee Harvest Volume International North America Fee Acres Owned
Slide 9: Weyerhaeuser Positioned to Capitalize on Attractive Timberland Outlook
Weyerhaeuser Positioned to Capitalize on Attractive Timberland Outlook Attractive outlook US trend log demand exceeds domestic supply International demand for logs increasing Demand is increasing for biomass and environmental solutions from the forest Weyerhaeuser well positioned Saw timber focused
Slide 10: Recognized Leader in Sustainability
Recognized Leader in Sustainability
Slide 11: Wood Products
Wood Products 2009 Net Sales of $2.2 Billion
Slide 12: Slide 12
Slide 13: WRECO (Weyerhaeuser Real Estate Co.)
WRECO (Weyerhaeuser Real Estate Co.) 2009 Net Sales of $900 million
Slide 14: Patty Bedient, Executive Vice President and Chief Financial Officer
Patty Bedient Executive Vice President and Chief Financial Officer
Slide 15: Benefits of REIT Conversion
Benefits of REIT Conversion REIT structure best supports strategic direction Benefit to the Company Qualified earnings distributed to shareholders not taxed at corporate level Benefit to shareholders Most dividends to shareholders taxed at capital gains rate
Slide 16: Completion of Steps for REIT Conversion
Completion of Steps for REIT Conversion Changed legal structure Moved non-qualifying business activities to taxable REIT subsidiary (TRS) Met REIT tests Distributed special dividend Final step: Elect REIT status on 2010 tax return
Slide 17: 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 18: 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 19: Substantial Near-Term Liquidity
Substantial Near-Term Liquidity Cash Balance After $1.3 billion Special Dividend Bank Revolving Credit Facility $1.0 billion (Expires 12/2011) Total Debt (9/1/2010) $5.1 billion 2017-2033 $40 $30 $ 732 $433 $15 $3,891 Debt Maturity Schedule ($ millions)
Slide 20: Post REIT Conversion Dividend Considerations
Post REIT Conversion 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 21: Dan Fulton, President and Chief Executive Officer
Dan Fulton President and Chief Executive Officer
Slide 22: 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 23: Slide 23
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