Slide 1: June 2013 Strategic Announcements
June 2013 Strategic Announcements WEYERHAEUSER Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains statements concerning the company's, Longview's and the combined company's future results and performance that are forward-looking statements within the meaning of the Private Securities
Slide 3: Participants
Participants DAN FULTON: President & Chief Executive Officer PATTY BEDIENT: Executive Vice President & Chief Financial Officer DOYLE SIMONS: Weyerhaeuser Board Member President & Chief Executive Officer, effective August 1, 2013 TOM GIDEON: Executive Vice President Timberlands
Slide 4: Strategic Announcements
Strategic Announcements Weyerhaeuser acquires approximately 645,000 acres of high- quality timberlands in Washington and Oregon (Longview Timber LLC) Board intends to raise quarterly dividend per share by 10% from $0.20 to $0.22 in August, payable in September, in conjunction with and subject to com
Slide 5: Longview Timber: Transaction Summary
Transaction and Purchase Price Financing Plan Timing Dividend Increase Longview Timber: Transaction Summary Agreed to acquire approximately 645,000 acres of high- quality timberlands in WA and OR (Longview Timber LLC) Purchase price of $2.65B (includes the assumption of debt) Transaction structured
Slide 6: Compelling Strategic Rationale
Compelling Strategic Rationale Unique, high-value timberlands, predominantly west of the Cascade mountain range Leverages Weyerhaeuser’s core competencies (logistics, silviculture, marketing & merchandising) Expect approximately $20 million in annual cost and operational synergies Expected to be imm
Slide 7: Longview Timber: Unique, High-Value Timberlands
Longview Timber: Unique, High-Value Timberlands High-value timber holdings with scale Predominantly west of the Cascade mountain range (>90% of value) Highly complementary and contiguous with Weyerhaeuser timberlands Favorable age class Primarily Douglas fir
Slide 8: Longview Timber: Property Description
Douglas fir 66% Hemlock 20% Other 14% Longview Timber: Property Description Productive lands Vast majority of combined commercial forest area in high site class Favorable age class distribution Opportunity for high front-end harvest Older age classes provide export- quality logs Superior logging ope
Slide 9: U.S. West Coast Timberlands: Higher Value Than Other Geographies
U.S. West Coast Timberlands: Higher Value Than Other Geographies Highly productive lands with significant merchantable volume Predominantly managed for saw timber Access to both domestic and export markets Douglas fir a preferred species with unique attributes – High strength and stiffness for its w
Slide 10: Increases Strategically Located Timberlands with Access to Export
Japan 78% China 15% Korea 7% Increases Strategically Located Timberlands with Access to Export Advantaged in international log markets – Strategically located West Coast timberlands – Well-developed infrastructure and sales relationships – Approximately 20% of Timberlands revenue from export log sal
Slide 11: Compelling Cost and Operational Synergies – Approximately $20 Million
Compelling Cost and Operational Synergies – Approximately $20 Million Expect to reach annual synergies of approximately $20 million within two years of closing Leverage scale infrastructure and logistics Increased high-value export logs Enhanced harvest flexibility – Immediate/Near-Term: Reduced ope
Slide 12: Enhancing Weyerhaeuser's Timberlands Exposure
Enhancing Weyerhaeuser’s Timberlands Exposure Total timberlands holdings rise to approx. million acres Growing Pacific Northwest acreage by 33% Pacific Northwest will increase to almost 40% of total acreage Source: Management Estimates Pacific Northwest Timberlands Holdings Acres (millions) 0.5 1.5
Slide 13: Public Timber REIT Ownership By Geography
Acres (millions) Other Pacific Northwest (west of Cascades) Public Timber REIT Ownership By Geography Longview Timber Source: WY, 2012 10Ks
Slide 14: Longview Timber LLC – GAAP Reconciliation
First Quarter 2013 (in millions) Longview Timber LLC – GAAP Reconciliation Source: First Quarter 2013 Financial Statements for Longview Timber LLC Longview EBITDA $43.1 Depletion, depreciation & amortization (32.1) Total other expense, net (primarily interest expense) (14.9) Provision for taxes (0.7
Slide 15: Financing Strategy
Financing Strategy Expect to raise $2.45 billion in conjunction with the acquisition – Approximately 50% equity and 50% debt Committed senior unsecured bridge facility from Morgan Stanley Weyerhaeuser remains committed to an investment- grade credit rating Strong capital structure supports a sustain
Slide 16: Enhances Weyerhaeuser's Ability to Increase Dividend
Enhances Weyerhaeuser’s Ability to Increase Dividend Weyerhaeuser remains committed to a sustainable, growing dividend Board intends to increase dividend per share by 10% from $0.20 to $0.22 in August 2013, payable in September 2013 Longview Timber cash flows and synergies support ability to further
Slide 17: Longview Timber Acquisition Summary
Unique, high-value timberlands, predominantly west of the Cascade mountain range Leverages Weyerhaeuser’s core competencies (logistics, silviculture, marketing & merchandising) Expect approximately $20 million in annual cost and operational synergies Expected to be immediately accretive to FAD per s
Slide 18: Weyerhaeuser Real Estate Company (WRECO)
Weyerhaeuser Real Estate Company (WRECO) Board authorizes exploration of strategic alternatives for Weyerhaeuser Real Estate Company (WRECO) WRECO is one of the 20 largest homebuilders in the country, located in some of the fastest-growing markets Alternatives include, but not limited to, continuing
Slide 19: Strategic Announcements
Strategic Announcements Weyerhaeuser acquires approximately 645,000 acres of high-quality timberlands in Washington and Oregon Board intends to raise quarterly dividend from $0.20 to $0.22 per share in August, payable in September, in conjunction with the acquisition Board authorizes exploration of
Slide 20: WEYERHAEUSER
WEYERHAEUSER
Slide 21: U.S. Timberland: West Coast has highest values
U.S. TIMBERLAND: West Coast has highest values Pacific Northwest region has two distinct zones: Coast and Inland West Coast dominated by Douglas fir, a preferred species in export and domestic markets Majority of sawtimber in the Inland and South goes to domestic mills U.S. FORESTLAND REGIONS West I