Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Investor Conference, New York, September 2009
16 slides from Weyerhaeuser's conference presentation, Sep 17, 2009
Slide 1: Investor Conference - Weyerhaeuser Company
New York September 2009 Patty Bedient, Executive Vice President – Chief Financial Officer Investor Conference Weyerhaeuser Company
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: Global footprint
Global footprint Thousands of Acres Fee Ownership Long-term Lease Total Fee and Lease License Arrangements U.S. West U.S. South Canada Uruguay China Total 2,063 2,063 3,429 4,125 15,177 5,813 6,587 15,177
Slide 4: Timberlands: Managed forestry creates value
Timberlands: Managed forestry creates value Loblolly Pine Douglas Fir Weyerhaeuser grows high-value softwood sawtimber using intensive forestry practices Loblolly pine in the South Fast early growth, resulting in younger harvest ages (compared to Douglas fir) Responsive to management to influence gr
Slide 5: Timberlands: Managed forestry creates value
Timberlands: Managed forestry creates value Deferring harvest to preserve value in response to lower log demand and realizations Upgrading portfolio through exchanges and occasional sales of non-strategic timberlands Additional revenue streams from land and timber Minerals, oil and gas, and geotherm
Slide 6: Wood Products
Wood Products A leading producer of solid wood products and panels Largest engineered wood products producer National distribution footprint Most recognized and trusted product brands
Slide 7: Wood Products: Managing through the downturn
Wood Products: Managing through the downturn Re-scaling operations to balance production against demand Closed or curtailed almost half of wood products facilities since market peak Comparable reduction in staffing Maintaining pricing discipline across all product lines Managing working capital and
Slide 8: Cellulose Fibers
Cellulose Fibers End Uses Operations 6 Manufacturing Facilities ~1.9MM Tons “ Primary ” Mills Bales Rolls Bales Grande Prairie, AB Flint River, GA Pt Wentworth, GA Columbus, MS New Bern, NC 6 Manufacturing Facilities ~1.9MM Tons “ Primary ” Mills “Converting” Plant Columbus, MS ( “CMF”) Bales Rolls
Slide 9: Cellulose Fibers: Value through differentiation
Cellulose Fibers: Value through differentiation Focus on absorbents and specialty fibers provides competitive advantage Continuing leadership position with key customers Selectively pursuing opportunities that support business strategy Pursuing potential opportunities in green energy and new uses fo
Slide 10: Real Estate: Unique brands and value propositions
Real Estate: Unique brands and value propositions
Slide 11: Real Estate: Focused on cash generation
Real Estate: Focused on cash generation Despite current market weakness, our homebuilding businesses are well positioned in markets with strong long-term fundamentals Managing through the cycle Repositioning product for current market conditions and emerging trends Curtailing spending on land acquis
Slide 12: 2009 Q3 Outlook Comments by Segment
2009 Q3 Outlook Comments Segment Increased activity at lower price points. Increased number of closings in Q3 2009, lower margins than Q2 2009 due to mix. Cancellation rate improved vs. prior year. Loss in single family homebuilding similar to loss in Q2 2009. Real Estate Pulp pricing gaining moment
Slide 13: Financial Update
Financial Update $2.1 billion cash at the end of August 2009 Significant September cash outflows $347 million debt maturities $120 million interest payments $20 million litigation settlement payment $11 million dividends Only minor debt maturities for next two years $37 million 4Q 2009 $43 million 2
Slide 14: Bank Credit Lines Amended
Bank Credit Lines Amended Committed Bank Facilities Minimum Defined Net Worth Covenant Amended Original March 2010 December 2011 Total $3.0 billion $3.75 billion $0.4 billion 1.0 $1.4 $1.2 billion 1.0 $2.2
Slide 15: REIT update
REIT update Unlikely that 2009 conversion would be value creating for shareholders Limitations on NOL carryback Low level of timber income reduces 2009 benefit Maintaining flexibility to elect REIT conversion Minimizing earnings and profit distribution Current portfolio likely meets REIT qualificati
Slide 16: Questions
Questions
Weyerhaeuser — Investor Conference, New York, September 2009 on 6ix