 WEYERHAEUSER COMPANY
INVESTOR MEETING
|
May 19, 2011
Exhibit 99.1 |
 2
|
05/19/2011
Kathy McAuley
Vice President,
Investor Relations |
 3
|
05/19/2011
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 accurate because of risks and uncertainties surrounding
the assumptions. Factors listed below, as well as other factors, may
cause actual results to differ significantly from these forward-looking statements. There is no
guarantee that any of the events anticipated by these forward-looking
statements will occur. If any of the events occur, there is no guarantee what effect they will have
on Company operations or financial condition. The Company will not update
these forward-looking statements after the date of the presentation.
Some
forward-looking
statements
discuss
the
Company’s
plans,
strategies
and
intentions.
They
use
words
such
as
“expects,”
“may,”
“will,”
“believes,”
“should,”
approximately,”
“anticipates,”
“estimates,”
and
“plans.”
In
addition,
these
words
may
use
the
positive
or
negative
or
a
variation
of
those
terms.
This presentation contains forward-looking statements regarding the
Company’s expectations regarding second quarter 2011, including housing market conditions;
market challenges for our Timberlands, Wood Products and Real Estate segments;
higher selling prices for western logs; higher harvest volumes in Timberlands, partially
offset by higher fuel expenses and seasonally higher road and silviculture
costs, with increasing global fee harvest volume and percentage of saw timber over time;
decreased sales realizations in lumber and OSB, improved operating rates and
cost reductions in our Wood Products segment, partially offset by increased log costs;
higher price realizations, partially offset by increased scheduled maintenance
costs in the Cellulose Fibers segment, with growing demand for fluff pulp over time; and a
seasonal increase in home sale closings and lower margins and average sales
prices in our single-family homebuilding operations. Major risks, uncertainties and
assumptions that affect the Company’s businesses and may cause actual
results to differ from these forward-looking statements include, but are not limited to:
•
general economic conditions, including employment rates, housing starts,
interest rate levels, availability of financing for home mortgages,
strength of the U.S. dollar;
•
market demand for the Company’s products, which is related to the
strength of the various business segments and economic conditions;
•
performance of the Company’s manufacturing operations, including
maintenance requirements; •
raw material prices;
•
energy and transportation costs;
•
successful execution of internal performance plans including restructurings
and cost reduction initiatives; •
level of competition from domestic and foreign producers;
•
the effect of the Japanese disaster on demand for company products;
•
the effect of weather and the risk of loss from fires, floods, windstorms,
hurricanes, pest infestation and other natural disasters; •
federal tax policies;
•
the effect of forestry, land use, environmental and other governmental
regulations; •
legal proceedings;
•
the effect of timing of retirements and changes in the market price of our
common stock on charges for share-based compensation; •
changes in accounting principles;
•
performance of pension fund investments and derivatives; and
•
the other factors described under “Risk Factors”
in the Company’s annual report on Form
10-K.
The Company also is a large exporter and is affected by changes in economic
activity in Europe and Asia, particularly Japan and China. It also is affected by changes in
currency exchange rates, particularly the relative value of the U.S. dollar to
the Canadian dollar, Euro and Yen. Restrictions on international trade or tariffs imposed on
imports also may affect the Company. |
 AGENDA
DAN FULTON:
Introduction
TOM GIDEON:
Timberlands
LARRY BURROWS:
Wood Products
PETER ORSER:
Weyerhaeuser Real Estate
Company (WRECO)
SHAKER CHANDRASEKARAN:
Cellulose Fibers
PATTY BEDIENT:
Financial Update
DAN FULTON:
Conclusion and Q&A
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|
05/19/2011 |
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|
05/19/2011
Dan Fulton
President and Chief Executive Officer
INTRODUCTION |
 6
|
05/19/2011
Valuable timberland holdings
Leader in adding and extracting value from timberlands
Businesses have the size and scale to compete,
and generate cash and returns
Positioned to benefit from the recovery in housing
•
Timberlands, Wood Products, Homebuilding
Capturing global growth in log and cellulose fibers
markets
Committed to creating value for our shareholders
Conversion to REIT completed in 2010
WEYERHAEUSER OVERVIEW |
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|
05/19/2011
WEYERHAEUSER OVERVIEW
Weyerhaeuser Company
Timberlands (REIT)
Taxable REIT Subsidiary
Non-REIT Timber Business
Wood Products
Weyerhaeuser Real
Estate Company (WRECO)
Cellulose Fibers
Lumber, OSB,
Engineered Wood Products
Over 6 million acres of timberlands
Specialty Absorbent Pulp
Single Family Homebuilding
Land Development
Minerals and other
non-qualifying activities |
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|
05/19/2011
Challenging housing market expected to continue
in 2011
Pace of recovery is uncertain
Housing will return to long-term trend levels
Focused on operating profitably at today’s level
of activity
HOUSING MARKET OVERVIEW |
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|
05/19/2011
Tom Gideon
TIMBERLANDS
Executive Vice President, Timberlands |
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|
05/19/2011
COMPETITIVE ADVANTAGES
World class timberland holdings
Manage for optimum value
–
Innovative silviculture
–
Focus on sawlogs
Scale and infrastructure
Broad access to domestic and international markets
Strong, long-standing customer relationships
Well-positioned as market
conditions improve |
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|
05/19/2011
TIMBERLANDS STRATEGY
Grow and manage financially attractive,
sustainable forests
Apply market knowledge
and scale to create
additional value
Explore opportunities for
future growth
Increasing cash flow and asset value |
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|
05/19/2011
U.S. TIMBERLANDS IN MOST
PRODUCTIVE REGIONS
US West
US South
Nearly 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 |
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|
05/19/2011
ASSET BASE IS OVER 90% PRODUCTIVE
TIMBERLANDS
Weyerhaeuser timberlands located in most
productive geographies
High quality sawtimber
Source of environmental and public benefits
Does not include 14.0 million acres of forestland under license in
Canada Timberlands
Acres (000)
%
US West
US South
Uruguay
China JV
Total
Core
1,851
3,723
327
44
5,945
92.5%
Non-Core
104
381
-
-
485
7.5%
TOTAL
1,955
4,104
327
44
6,430
100% |
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|
05/19/2011
SILVICULTURE OPTIMIZED THROUGH THE
ROTATION
Silviculture practices enable objective to grow
sawtimber as quickly as possible
Sustainability
Genetics
Stand
Management
Final Harvest
•
US West
•
US South
•
Uruguay
•
China
Financial
Optimization
Site Preparation,
Fertilizer, Thinning
and Pruning
Seedlings |
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|
05/19/2011
SUSTAINABILITY AND ENVIRONMENTAL
CAPABILITIES
Meet ecological and sustainability requirements
–
Enable higher yields throughout a rotation
–
Satisfy customer requirements
–
Improve sustainability performance through collaboration
with partners and investment in research
Leads to increased value |
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|
05/19/2011
ALL LANDS INDEPENDENTLY CERTIFIED
Key stakeholder involvement
Based on sound science
–
Open, independent, peer reviewed
research
Program broad in scope
–
Lands managed for productivity
and ecosystem values
Recognized by the Dow Jones
Sustainability Index |
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|
05/19/2011
HARVEST MIX
Weyerhaeuser’s timber resource and tree-growing
strategy enables a high proportion of high value
grade logs –
improving over time.
% GRADE LOGS
TIMBERLANDS
NOW
2020-2030
South
60%
65%
70%
West
93%
Steady
International
30%
40%
50% |
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|
05/19/2011
VALUE OF SAWTIMBER GRADE LOGS IS
HIGHER
Sawtimber logs consistently trade at a higher price
than chip-n-saw and pulpwood
10
20
30
40
50
60
2005
2006
2007
2008
2009
2010
2011
2012
Delivered Southern Average Prices
$/Green Ton Delivered
Quarterly
Source: Timber Mart-South,
Wood
Biomass Market Report
Pulpwood
Sawtimber
Chip-N-Saw |
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|
05/19/2011
HARVEST VOLUME OUTLOOK IS POSITIVE
More productivity per acre
Weyerhaeuser Global Fee Harvest Volume
0
5
10
15
20
25
30
2010
2015
2020
2025
2030
INTERNATIONAL
U.S. |
 20
|
05/19/2011
U.S. TREND LOG DEMAND EXCEEDS
DOMESTIC SUPPLY
U.S. lumber
demand starting
recovery from
cyclic low
Canadian lumber
imports will not
return to prior
peaks
Rising lumber /
log demand
should lead to
higher prices
0
10
20
30
40
50
60
70
1976
1985
1995
2005
2010
2015
2020
BBF
US Lumber Consumption by Source
Offshore Imports
Canadian Imports
US Production
Forecast*
Source: WWPA, AF&PA *Weyerhaeuser |
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|
05/19/2011
ASIAN DEMAND PULLING ADDITIONAL
U.S. SUPPLIES
Japan is a premium market for logs
China imports of U.S. timber significantly higher,
helping offset weak domestic demand
Western Douglas Fir Log Prices
$/MBF
Quarterly
Source: Log Lines
0
1000
2000
3000
4000
5000
6000
7000
2009
2010
Korea
Japan
China
U.S. Off-Shore Softwood Log Exports
Cubic Meters
Annual
Source: U.S. Dept of Agriculture
270%
Increase |
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05/19/2011
UNIQUELY ADVANTAGED TO SERVE
ASIAN EXPORT MARKETS
Strategically located
timberlands
Well-developed
infrastructure and sales
relationships
19% of timberlands revenue
from export log sales
–
Japan is a premium market for
Weyerhaeuser logs
–
China represents an
increasingly large and
attractive opportunity
2010 Export Log
Revenue by Country
Japan
81%
China
13%
Korea
6% |
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|
05/19/2011
U.S. LOG PRICES HAVE BOTTOMED
2011 Q1 Western
prices up
significantly, helped
by export markets
Southern markets
more dependent
on U.S. housing,
delaying
improvement
250
350
450
550
650
750
2000
2002
2004
2006
2008
2010
2012
DF #2 Log Price
SYP Sawlog
Douglas Fir #2 Sawlog Price vs.
Southern Average Pine Sawlog Price
$/MBF
Quarterly
Source: Log Lines, Timber Mart-South |
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|
05/19/2011
U.S. OIL, NATURAL GAS, AGGREGATES
AND MINERALS
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
2009-2010 revenues
•
New operations adding to revenues |
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|
05/19/2011
NEW OPPORTUNITIES
Biomass
–
Catchlight Energy
•
KIOR agreement
Wind
Geothermal |
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|
05/19/2011
COMPETITIVE ADVANTAGES
World class timberland holdings
Manage for optimum value
–
Innovative silviculture
–
Focus on sawlogs
Scale and infrastructure
Broad access to domestic and international markets
Strong, long-standing customer relationships
Well-positioned as market
conditions improve |
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|
05/19/2011
Larry Burrows
WOOD PRODUCTS
Senior Vice President,
Residential Wood Products |
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|
05/19/2011
2010 Wood Products Net Sales
$2.6 billion
13%
21%
17%
49%
Lumber
Engineered Wood Products
OSB / Plywood Panels
Other
WEYERHAEUSER WOOD PRODUCTS
•Primarily new residential
•Modest export
•Primarily new residential
•Modest repair & remodel
•Modest export
•New residential
•Repair & remodel
•Export
Leader in manufacture of wood products
•New residential |
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|
05/19/2011
Generate cash in 2011 in
today’s market
Continued focus on cost reduction
–
SG&A
down
additional
20%
(2011
Q1
vs.
2010
Q1
)
–
Operating
costs
10%
lower
(2011
Q1
vs.
2010
Q1
)
Rationalize and optimize capacity
2011
2009 Q1
2011 Q1
Capacity
Utilization Rate
Lumber
4,530 MMBF
58%
79%
OSB
3,015 MM3/8
38%
66%
TJI
380 MMLF*
16%
32%
Solid Section
39 MMCF**
16%
37%
* Includes 1 indefinitely curtailed facility
** Includes 3 indefinitely curtailed facilities
STRATEGIC IMPERATIVES: GENERATE
CASH AND IMPROVE MARGINS |
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|
05/19/2011
STRATEGIC IMPERATIVES: GENERATE
CASH AND IMPROVE MARGINS
Profitably grow revenue
–
Develop and diversify markets (domestic & international)
–
Improve pricing
–
Customer selection
–
Improve product mix |
 Grande Prairie
Drayton Valley
Princeton
Raymond
Longview
Santiam
Cottage Grove
SPF EXPORT
SPF
DOUG-FIR
GREEN
HEM-FIR
DOUG-FIR
KD
SO. PINE
WEST
SO. PINE
CENTRAL
SO. PINE
EAST
DOUG-FIR
GREEN
Idabel
Dierks
Zwolle
Dodson
Holden
McComb
Millport
Bruce
Philadelphia
Greenville
Plymouth
New Bern
LUMBER: MARKET DEMAND DRIVES
MILL AND LOG ALIGNMENT
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|
05/19/2011 |
 Hudson Bay
Grayling
Arcadia
Sutton
Elkin
Edson
EdgeGold Flooring
Markets
Web, Sheathing, Edge,
and RBS Markets
OSB: FOCUSED MARKET AND MILL
ALIGNMENT
32
|
05/19/2011 |
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|
05/19/2011
ENGINEERED: SUPERIOR BRAND
PERFORMANCE AND RECOGNITION
*Quality rated on scale of 1 to 7 with 7 being excellent
Source: 2011 Brand Use Study, Builder Magazine
5.96
5.58
5.55
TJI (WY)
GP
Boise
Brand Most Used by Builders
Highest Quality*
21%
12%
10%
TJI (WY)
GP
Boise |
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|
05/19/2011
ILLUSTRATION OF WEYERHAEUSER WOOD
PRODUCTS IN A HOME |
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|
05/19/2011
WEYERHAEUSER WOOD PRODUCTS USED
IN FLOORS
LUMBER
Solid Sawn Joists
OSB
OSB Floor Panels
Rim Board
ENGINEERED LUMBER
I-Joists
Stair Treads
Engineered Lumber
Beams |
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|
05/19/2011
WEYERHAEUSER WOOD PRODUCTS USED
IN WALLS
LUMBER
Framer Series
®
and Pro Series
™
Lumber
Studs
Treated Sill Plate
OSB
OSB Wall Sheathing
ENGINEERED LUMBER
Shear Brace
Engineered Headers
Engineered Wall Framing |
 37
|
05/19/2011
WEYERHAEUSER WOOD PRODUCTS USED
IN ROOFS
LUMBER
Framer Series
®
and Pro Series
™
Lumber
Solid Sawn Lumber
OSB
Radiant Barrier Sheathing
OSB Roof Sheathing
ENGINEERED LUMBER
Engineered Beams
Truss Chords
TJI
®
Joists
Timberstrand
®
Roof Framing |
 38
|
05/19/2011
SIGNIFICANT LONG-TERM OPPORTUNITY
IN WOOD PRODUCTS
Improving demand
–
U.S. housing returns to trend
–
Increasing Asian consumption of North American lumber
Lower Canadian lumber imports, due to pine beetle
and increased exports to Asia
Earnings upside from additional available capacity
Well-positioned to leverage scale
and product mix |
 39
|
05/19/2011
Peter Orser
WEYERHAEUSER REAL
ESTATE COMPANY
(WRECO)
President,
Weyerhaeuser Real Estate Company |
       40
|
05/19/2011
OVERVIEW
Top 20 builder of single-family homes
Operate in select markets with positive long-term trends
|
 41
|
05/19/2011
NEAR-TERM STRATEGIES
Control the controllables
Reposition product
Rebalance land portfolio
Focused on generating cash |
 42
|
05/19/2011
Sales Per Community Per Month
Source: SEC filings
TARGETED VALUE PROPOSITIONS SUSTAIN
COMPETITIVENESS
+14% |
 43
|
05/19/2011
CONTROLLING THE CONTROLLABLES:
COST OF PRODUCTION
Disciplined production
cost-control provides
margin support
–
Cost effective product
designs
–
National contract
leverage
–
Subcontractor selection
and supervision
–
Reduced cycle time
(1)
Single-family margins equal revenue less cost of sales
and period costs (other than impairments and deposit write-offs)
|
 44
|
05/19/2011
CONTROLLING THE CONTROLLABLES:
REDUCING EXPENSES
Took immediate steps
to substantially
reduce costs
Organization adjusting
to local market
conditions
Reduced marketing
expense through
increased usage
of digital media
$0
$50
$100
$150
$200
$250
$300
2008
2009
2010
SG&A |
 45
|
05/19/2011
CONTROLLING THE CONTROLLABLES:
INCREASED REFERRALS
Maintaining industry
leading customer-
satisfaction ratings
Leads to lower
marketing costs and
increased conversion
rates
Source:
Woodland-O’Brien
Industry Average 86-90% |
 46
|
05/19/2011
RE-POSITIONING INITIATIVES
Launched new townhome product line directed at
mid-to-upper price segment in north San Diego County
Sustained absorption of 5 units per month at average
sales price of $550,000 |
 47
|
05/19/2011
RE-POSITIONING INITIATIVES
“Living Smart”
product line offering sustainable
features became the best selling new home series in
the Inland Empire
Named Green Building Advocate of the Year for 2010
by NAHB
Features that
either reduce
consumption
or actually
generate energy.
The extensive
use of sustainable
materials that
help conserve natural
resources.
Low VOC paint
and other features
that promote
healthy living.
Landscaping
and fixtures that
help conserve
water usage. |
 RE-POSITIONING INITIATIVES
Re-branded from “More House. Less Money”
to “Built Your Way”
Expanded market reach to first-time move-up segment
New orders increased 5% year-over-year in first quarter
and average sales price increased 7% |
 49
|
05/19/2011
RE-POSITIONING INITIATIVES
Successfully introduced
Texas Casual Cottage
product line
Opened second location
in response to strong
market interest |
 RE-POSITIONING INITIATIVES
Re-designed townhome product line to seamlessly
integrate affordable dwelling units with market rate
homes
Continued expansion of Camberley Homes brand |
 51
|
05/19/2011
RE-POSITIONING INITIATIVES
Re-designed product
line to appeal more
broadly to move-up
market segment
and reduce costs
Improved point of sale
experience |
 52
|
05/19/2011
CONTROLLING THE CONTROLLABLES:
DISCIPLINED LAND SPENDING
Lot acquisition activity
linked to market
demand
Focused on “how”
we
buy, as well as “what”
we buy |
 STRATEGICALLY RE-POSITION LAND
PORTFOLIO
Align land value proposition with sub-market opportunity
Land Designated for Sale
Lots Owned as of 12/31/10 or Closest Reporting Period
53
|
05/19/2011 |
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|
05/19/2011
LONGER-TERM STRATEGIES
Control the controllables
Capitalize on opportunities in existing markets
Realign land portfolio |
 55
|
05/19/2011
Shaker Chandrasekaran
CELLULOSE FIBERS
Senior Vice President,
Cellulose Fibers |
 56
|
05/19/2011
Fluff market is tight
Despite additional capacity entering the market,
fluff demand expected to exceed supply in
next 3-4 years
Global inventories remain low
Favorable exchange rate
FAVORABLE MARKET CONDITIONS |
 57
|
05/19/2011
100% of 2010 Revenues from Fluff and
Value Added Grades
14%
20%
48%
18%
Absorbent Pulp (Fluff)
Specialty Pulp
Towel and Tissue
Liquid Packaging Board
FOCUSED ON VALUE ADDED GRADES |
 58
|
05/19/2011
FOCUSED ON VALUE ADDED GRADES
Global Softwood and
Dissolving Wood Pulp Market
Global Market Share
–
~26% of Fluff
–
~10% of Towel and Tissue
*Dissolving Wood Pulp is from both Hardwood & Softwood
$$$
$
Towel and
Tissue
4
13 |
 HOW OUR PRODUCTS ARE USED
Diapers and personal care products
Premium towel and tissue products
Textiles and nonwovens and industrial applications
Packaging for dairy, juice and premium beverage
containers |
 60
|
05/19/2011
GEOGRAPHICALLY DIVERSE BUT
STRATEGICALLY LOCATED
•
NBSK for Towel and Tissue
•
Pulp for Liquid
Packaging Board
•
NORPAC
•
Fluff Pulp for Absorbents
and Specialty Grades
COLUMBUS
LONGVIEW
Pulp Mills
Liquid Packaging Board
NORPAC Joint Venture
PORT WENTWORTH
NEW BERN
FLINT RIVER
GRANDE PRAIRIE |
 61
|
05/19/2011
EMERGING MARKETS LEADING GROWTH
Global Market Fluff Projected Demand
Growth Rates from 2010-2015*
* Source: RISI |
 62
|
05/19/2011
Weyerhaeuser’s CF 2010 Revenues
POSITIONED TO GROW IN EMERGING
MARKETS
62% of revenue from
international markets
Export to over 60
countries
Strategically located
multilingual global
sales team
Strategic
relationships with key
global market leaders
EMEA
7%
Europe
14%
Japan
16%
Asia
(Non-Japan)
22%
North
America
38%
S. America
3% |
 63
|
05/19/2011
OPERATIONAL EXCELLENCE
World class reliability
–
Maximize uptime
–
Maximize quality
Continue to reduce fiber, chemical and energy
costs
Decrease the frequency of planned shutdowns
from 12 months to 18 months (target: 2013-14)
–
Results in “incremental”
capacity
–
Reduces maintenance spending
Getting more from our existing assets –
building a “virtual mill” |
 64
|
05/19/2011
Leading innovation in cellulose fibers
–
Developed and launched dissolving wood pulp
extender, Pearl®
–
Introduced “next
generation”
Modified Fiber for global
customers
–
Improving proprietary fibers for specialty applications
–
Delivering innovative liquid packaging board solutions
INNOVATING FOR HIGHER MARGINS |
 65
|
05/19/2011
BUILDING ON OUR STRENGTHS
Continuing to focus on value added grades
Nurturing strategic partnerships with key global
customers
Operational excellence
Innovation |
 66
|
05/19/2011
Patty Bedient
FINANCIAL UPDATE
Executive Vice President,
and Chief Financial Officer |
 67
|
05/19/2011
2011 Q2 EARNINGS UPDATE
Segment
Comments
Timberlands
Improved selling prices for western logs and higher harvest
volumes, driven by strong export demand
Flat sales realizations in the South on slightly higher volumes
Higher fuel, road and silviculture expenses
Excluding the disposition of non-strategic timberlands, expect
2011 Q2 earnings to be slightly higher than 2011 Q1
Wood
Products
Decreased sales realizations in lumber and OSB
Higher log costs in the West
Anticipate slightly increased operating loss in 2011 Q2 vs.
2011 Q1
Expect positive cash flow from the segment in 2011 Q2
|
 68
|
05/19/2011
2011 Q2 EARNINGS UPDATE
Segment
Comments
Cellulose
Fibers
Higher selling prices and slightly higher sales volumes
Increase in the number of scheduled annual maintenance outages
will result in higher maintenance costs and lower productivity
Expect 2011 Q2 earnings to be higher than 2011 Q1
Real Estate
Anticipate seasonal increase in single-family home closings
Average closing price declines slightly due to mix
Expect breakeven results from single-family homebuilding
operations in 2011 Q2 |
 69
|
05/19/2011
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 basis
2011 dividend payout ratio will exceed 75% of FAD,
given current outlook
A sustainable dividend that
we expect to grow over time |
 70
|
05/19/2011
STRONG LIQUIDITY AND IMPROVING
CAPITAL STRUCTURE
Cash balance as of 3/31/2011: ~$1.5 billion
New 4-year credit facility expected by 6/30/2011
Exercised “make whole”
on $518 million of 6.75%
March 2012 bonds to be redeemed 6/2/2011
Strong capital structure
supports sustainability of dividend
2011
2012
2013
2014
2015-2016
Revised Maturities
551
199
409
15
0
Ending Debt Balances
$4,509
$4,310
$3,901
$3,886 |
 71
|
05/19/2011
CAPITAL SPENDING
Estimated 2011 capital spending: $250-270
million
Capital investment in projects that:
•
Meet customer demand
•
Lower costs
•
Enhance earnings capabilities |
 72
|
05/19/2011
STRATEGIC GROWTH PRIORITIES
Increase timberland holdings to grow cash flow
and earnings
Apply timberland management expertise
Leverage scale, infrastructure and market access
|
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Dan Fulton
President and Chief Executive Officer
CONCLUSIONS / Q&A |
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05/19/2011
Leader in adding and extracting value from
timberlands
All businesses have the ability to generate cash
and returns
Committed to a sustainable dividend that
we expect to grow over time
Target growth in timberland holdings
Take advantage of future opportunities to create
value for shareholders
CONCLUDING COMMENTS |
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THIRD PARTY VALIDATION |
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05/19/2011
BIOGRAPHIES |
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05/19/2011
DAN FULTON
Dan Fulton was elected chief executive officer and a member of the board of
directors in April 2008. He remains as president of Weyerhaeuser
Company, a position he assumed in January 2008. From May 2001 until
March 2008 he was president and chief executive officer of Weyerhaeuser
Real Estate Company, a wholly owned subsidiary
of
Weyerhaeuser
Company.
In
January
2004
he
was
named
to
Weyerhaeuser Company’s senior
management team. Fulton joined
Weyerhaeuser’s investment evaluation department in 1976. He
transferred
to
Weyerhaeuser
Real
Estate
Company
(WRECO)
in
1978.
In 1979 Dan
transferred to WRECO’s Weyerhaeuser
Venture Company where he held a series of investment management roles.
From 1987–1988 Dan served as the chief executive
officer of Cornerstone Columbia Development Company. In 1988 he returned to
Weyerhaeuser Venture Company and its affiliate Weyerhaeuser Realty
Investors. Dan served in various management and investment positions
before becoming president and
chief
executive
officer
of
Weyerhaeuser
Realty
Investors
and
Weyerhaeuser
Venture Company from 1998–2000.
Before
joining
Weyerhaeuser,
he
served
as
an
officer
in
the
U.S.
Navy Supply Corps.
Fulton graduated with a bachelor of arts degree in economics from Miami
University (Ohio) in 1970. He received a master of business
administration degree in finance from the University of Washington in
1976, and he completed the Stanford University Executive Program in
2001. Fulton currently serves on numerous national boards, including the
Business Roundtable
(BRT),
National
Alliance
of
Forest
Owners
(NAFO),
and
Sustainable
Forestry
Initiative
(SFI).
He
also
is
a
member
of
the
Washington
State Roundtable.
Fulton serves as chair of United Way of King County, and chair of the
Policy Advisory Board of the Joint Center of Housing at Harvard
University. |
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|
05/19/2011
PATTY BEDIENT
Patty Bedient was named Executive Vice President and Chief Financial Officer
in April 2007. She became senior vice president of Finance and
Strategic Planning in February 2006 and from February 2003 to 2006 she
served as vice president of Strategic Planning.
Prior
to
joining
the
company,
Patty
was
with
Arthur
Andersen
LLP
for
27 years, where
she served a number of clients in the forest products, manufacturing,
distribution and educational
service
industries.
She
began
her
career
with
Arthur
Andersen in
Portland, Oregon, becoming a partner in 1987. In 1993 she transferred to the
Boise, Idaho, office. From 1999-2002 she served as the managing
partner for the Seattle office and as the partner in charge of the
firm's forest products practice. Bedient attended Oregon State
University where she received a bachelor of science degree in Business
Administration, with a concentration in accounting and finance. Patty is
a certified public accountant and is a member of the American Institute of
CPAs and the Washington Society of CPAs.
She currently serves on the board of directors of Alaska Air Group, the Oregon
State University Foundation board of trustees, the advisory board for
the University of Washington School of Business, and the San Francisco
regional advisory board for FM Global.
She has served on the boards of the World Forestry Center, the Forest History
Society, and the Forest Research Lab advisory committee, Oregon State
University. She has also served as past president, City Club of
Portland; past chair, board of regents, St. Mary's Academy of Portland;
past vice chair, Boise Chamber of Commerce; and past treasurer
for
both
United
Way
of
Ada
County,
Idaho,
and
Alliance
for Education in
Seattle. |
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|
05/19/2011
TOM GIDEON
Tom Gideon was named executive vice president, Timberlands, in October 2010.
He had been executive vice president, Forest Products, since July 2008.
Gideon became senior vice president of Containerboard Packaging and
Recycling in March 2007. From 2005 to 2007 he held the position of
senior vice president, Timberlands. Gideon joined Weyerhaeuser in 1978, working at NORPAC as an employee
representative for the SW Washington region. He held several labor relations
and human resources positions, becoming the human resources, and then
sales manager, at the Elkin, N.C., Structurwood facility. He held
several human resources jobs in Wood Products before moving into
Western Timberlands in 1996. In 1998 Gideon assumed the role of
director of sales and marketing for Western Timberlands. From 2003 to
2005 he held the position of vice president for Western Timberlands where he
was responsible for managing approximately 2.2 million acres of
certified managed forests in Oregon and Washington.
Gideon graduated in 1974 with a bachelor of arts degree in business
administration from the University of Washington. In 1978 he received
an MBA in Labor Relations and a Juris Doctor, Law, also from the
University of Washington. He has served on several special assignments and projects, including the Labor
Principles team (1994-1995); the team leader for the Western
Timberlands Design and Implementation Team (1996); the Western Labor
Council Chairman (1996 through 2004); Western Wood Products and
Timberlands team leader for the Willamette integration; and as the team
lead for the Support Alignment Human Resources effort. He has been a
recipient of the President's Award (1994). Gideon is a member of the Washington State Bar Association and a former board
member of the Oregon Forest Industry Council. |
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05/19/2011
LARRY BURROWS
Larry Burrows was appointed senior vice president, Residential Wood Products,
in October
2010.
He
had
been
president
and
CEO
of
Weyerhaeuser
Real
Estate
Company
(WRECO) since March 2008. Previously he was president of Winchester Homes
Inc., Weyerhaeuser’s
homebuilding operation in the Washington, D.C. area. Prior to joining
Weyerhaeuser in 1989, Burrows was with Gladstone Associates from 1976–1980. From 1980–1982 he was a development manager for Mason Hirst;
1982–1986 he served as project manager
and vice president, Oliver T. Carr & Co.; and from 1986–1988 he was vice president and regional manager for Dickinson Heffner.
In 1989 he joined Winchester Homes Inc., where he served in several different
capacities, including development manager, director of development,
division vice president, construction services division vice president,
and executive vice president, before becoming president of Winchester
Homes in 2003. Larry graduated from Rutgers University (1974) with a
B.A. in Urban Studies, and received a
master’s degree in Urban Planning from the University of Pennsylvania
(1976). He attended the Wharton Business School Advanced Management Program
(2000), the Weyerhaeuser Leadership Institute (2003) and the WRECO
Leadership Institute (2004).
Burrows served on the Board of HomeAid of Northern Virginia and chaired the
Volume Builders Council for the Maryland National Capital Building
Industry Association. He was a co-founder of the Regional Quality
Council for the Maryland National Capital and the Northern Virginia
Building Industry Associations. |
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|
05/19/2011
PETER ORSER
Peter
Orser
was
appointed
president
and
CEO
of
Weyerhaeuser
Real
Estate
Company
(WRECO) in October 2010. He oversees five real estate companies and the
company’s builder financing
operation. Previously he was president of Quadrant Corporation,
Weyerhaeuser’s homebuilding operation
in the Puget Sound region of Washington. Orser joined Quadrant Homes in
1987, assuming leadership in 2003. He has been involved in every major
element of Quadrant’s diverse real estate businesses. Over the
last 10 years, Peter has led a reengineering of the Home Building operation,
bringing Quadrant to prominence as
Washington’s largest home builder.
Peter attended the University of Puget Sound where he earned a Bachelor of
Science degree in natural science. He earned his master’s degree from the University of
Washington in urban planning.
He is currently a commissioner and past Chairman of the King County Housing
Authority, a board member and treasurer for the Cascade Land
Conservancy, and a board member for the Seattle Chamber of Commerce. He
served as President of the King and Snohomish County Master Builders
Association in 2004. He also served five years as
the
Mercer
Island
planning
commissioner
and
was
elected
to
a
four-year
term
on the city council in 1994. |
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|
05/19/2011
SHAKER CHANDRASEKARAN
Shaker Chandrasekaran was appointed senior vice president, Cellulose Fibers
business in December 2006. He assumed additional responsibilities for
Liquid Packaging Board and Newsprint businesses in June 2007, and in
2009, Westwood Shipping
and
Weyerhaeuser
Engineering
Services
were
added
to
his
portfolio.
Previous to these roles, Shaker served as the mill manager and vice president
at Weyerhaeuser’s
Kingsport,
Tenn.,
paper
mill
and
the
Kamloops,
B.C.,
cellulose
fibers
mill and more recently vice president Manufacturing, Cellulose Fibers.
A 39-year veteran of the pulp and paper industry, Chandrasekaran started
his career in India, and then migrated to the U.S. in 1980. After
graduate education, he joined Container Corporation of America and then
worked for Mead, and later Willamette Industries, which was acquired by
Weyerhaeuser in 2002. Shaker received a bachelor of science in chemical
engineering from the University of Madras, India (1971), and a master
of science in paper science and engineering from Miami
University,
Oxford,
Ohio
(1982).
He
has
also
completed
the
Stanford
University
Executive
program
and
other
executive
management
programs
at
the
Wharton
Business School and the Darden School of Business at the University of
Virginia. Shaker currently serves on the board of trustees for Miami
University Paper Science & Engineering Foundation. He is also the
Chairman of the Board of NORPAC, a joint venture between Weyerhaeuser
Company and Nippon Paper Industries, Japan. Effective January 2010, he
was named Weyerhaeuser’s Corporate Safety Champion. |
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