FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES
This presentation contains statements and depictions that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including without limitation with respect to the following: our future goals and prospects, including 2025 goals and targets relating to our timberlands investments, operational excellence and sustainable margin improvements, growth and annual Adjusted EBITDA performance of our Natural Climate Solutions business, increase in annual lumber production, reductions of greenhouse gas emissions, and achievement of external ESG recognitions; business strategies; factors affecting market supply of lumber; key initiatives; expected levels of demand and market drivers for our products, including expected growth projections in U.S. housing demand, repair and remodel activity and adoption of wood-based building; market dynamics for housing; replenishment of HBU acres through timberland acquisitions; expected growth in export markets; our cash dividend framework, base dividend sustainability and target annual growth, and our target percentage return to shareholders of Adjusted Funds Available for Distribution (Adjusted FAD), including expected supplemental cash dividends and future share repurchases; capital structure, credit ratings, debt maturities, liability management, and revolving line of credit capacity; our outlook for capital expenditures across the company for 2023, 2024 and 2025; our sustainability ambitions and goals, including our 2030 greenhouse gas emissions reduction targets and our 2040 net-zero emissions goal; and expected growth in cash flows from our natural climate solutions business resulting from forecasted growth in markets and demand for renewable energy, mitigation and conservation, carbon off-sets and carbon sequestration. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may be identified by our use of certain words in such statements, including without limitation words such as "committed," "expect," "emerging," "growing," "maintain," "outlook," "sustainable," "target," "will," and similar words or phrases using such words, as well as references to future dates. Depictions or illustrations that constitute forward-looking statements may be identified by graphs, charts or other illustrations indicating expected or predicted occurrences of events, trends, conditions, performance or achievements at a future date or during future time periods. We may refer to assumptions, goals, targets, or expected performance through, or events to occur by or at, a future date, and such references may also constitute forward-looking statements. Forward-looking statements are based on our current expectations and assumptions. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that are difficult to predict and often are beyond the company's control. These risks, uncertainties and other factors could cause one or more of our expectations to be unmet, one or more of our assumptions to be materially inaccurate or actual results to differ materially from those expressed or implied in our forward-looking statements, or all of the foregoing. Such risks, uncertainties and other factors include without limitation: the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar; the effects of viral or disease outbreaks, including without limitation any related regulatory restrictions or requirements and their potential impacts on our business, results of operations, cash flows, financial condition and future prospects; market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions; changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen; restrictions on international trade and tariffs imposed on imports or exports; the availability and cost of shipping and transportation; economic activity in Asia, especially Japan and China; performance of our manufacturing operations, including maintenance and capital requirements; potential disruptions in our manufacturing operations; the level of competition from domestic and foreign producers; the success of our operational excellence initiatives; the successful and timely execution of our strategic acquisitions strategy, including the successful integration of our acquisitions and our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which could be subject to a number of risks and conditions beyond our control including without limitation timing, required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination event under the terms of the governing transaction agreements; raw material availability and prices; the effect of weather; changes in global or regional climate conditions and governmental response to any such changes; the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; energy prices; availability and costs for transportation and labor; federal tax policies; the effect of forestry, land-use, environmental and other governmental regulations; legal proceedings; the performance of pension fund investments and related derivatives; the effect of timing of employee retirements as it relates to the cost of pension benefits and changes in the market price of our common stock on charges for share-based compensation; the accuracy of our estimates of costs and expenses related to contingent liabilities and charges related to casualty losses; changes in accounting principles; and other risks and uncertainties identified in our 2023 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements and reports, including reports, registration statements, prospectuses, information statements and other filings with the SEC, as well as other factors not described herein because they are not currently known to us or we currently judge them to be immaterial. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements. Nothing on our website is intended to be included or incorporated by reference into, or made a part of, this presentation. Also included in this presentation are certain non-GAAP financial measures that management believes complement the financial information presented in accordance with U.S. GAAP and therefore may be useful to investors. Our non-GAAP financial measures may not be comparable to similarly named or captioned non-GAAP financial measures of other companies. Except for certain forward-looking non-GAAP measures, a reconciliation of each presented non-GAAP measure to its most directly comparable GAAP measure is provided in the appendices to this presentation.
WEYERHAEUSER INVESTMENT THESIS
CONTINUED STRONG PERFORMANCE
Making Progress Against Our Multi-Year Targets
WHO WE ARE
Largest Timber REIT with Unmatched & Complementary Industry-Leading Businesses
TIMBERLANDS
We are the largest private owner of timberlands in North America
Unrivaled portfolio that cannot be replicated
Leader in sustainable forestry practices
10.5 million acres held in the U.S. and 14 million acres licensed in Canada
REAL ESTATE, ENERGY & NATURAL RESOURCES
We capture the highest value from every acre
Expertise and technology platform enables end-to-end portfolio value creation
Emerging Natural Climate Solutions business will serve the rising demand for net-zero solutions
WOOD PRODUCTS
We are one of North America's largest, low-cost wood products manufacturers
Industry-leading scale, brand and reputation
Diversified mix of high-quality products
35 manufacturing facilities across North America
CARBON PLATFORM
We are an unrivaled carbon investment opportunity
Our forests and wood products sequester millions of tons of CO2 annually, and we are significantly carbon negative
Emerging carbon markets will drive long-term portfolio value creation
WHAT WE DO
Create and Capture Superior Value at Every Step
PROPRIETARY | CUSTOMIZED | TARGETED | HEALTHY | HARVEST | DELIVERED | OPTIMAL RAW | LOW-COST | DIVERSE |
SEEDLINGS | PLANTING | SILVICULTURE | FORESTS | AND HAUL | LOG MODEL | MATERIALS | PRODUCER | CUSTOMER MIX |
yield superior | deploys the best | generates | that are diverse, | efficiency and | captures maximum | to maximize mill | that achieves top | that fully values |
growth, wood | genetic material for | superior volume | productive and | logistics capabilities | value from each | margins through | margin for lumber, | our quality, scale, |
quality and survival | each acre on our | and value in each | grown sustainably | for low-cost and | tree using data- | cost-effective fiber | panels and | reliability and |
characteristics | land base | geography | to financial maturity | reliable operations | driven optimization | procurement | engineered wood | sustainable practices |
PREMIUM LAND SALES maximizing value from each acre via higher-and-better-use parcelsNATURAL CLIMATE SOLUTIONS maximizing value through wind, solar, carbon, mitigation & conservationSTEADY ROYALTY & LEASE INCOME maximizing value from surface & subsurface assets
WEYERHAEUSER TIMBERLANDS EXPORT MARKETS
Unrivaled Market Position and Supply Chain Expertise
UNIQUE JAPAN EXPORT BUSINESS
Multi-decade relationships supplying
post & beam housing market
OTHER WY EXPORT MARKETS
Western timberlands ownership provides
premium logs at unrivaled scale
Largest log export facility in North America creates
substantial supply chain advantage and efficiencies
Direct-to-customer strategy facilitates consistent demand
Flexibility to quickly respond to shifts in global wood demand
Southern exports positioned to grow
Targeting new geographies and growing demand for wood fiber, biomass and pellets
(1) Percentages based on 2023 full year Timberlands export log sales. Less than 0.5% of export log revenue associated with sales to other markets. Southern exports to China are currently paused due to ongoing phytosanitary rules imposed by Chinese regulators.
Scale + Consistent Product Quality + Supply Chain Reliability = Export Competitive Advantage
TIMBERLANDS GROWTH STRATEGY UPDATE
Disciplined Approach to Growing the Value of Our Timberlands
(1) As of December 31, 2023. Includes several smaller bolt-on acquisitions, not separately announced.
(2) Timberlands acquired in 2023 Q4 in the Carolinas and Mississippi were associated with a purchase and sale agreement, structured as a tax-efficient like-kind exchange.
(3) Reflects final purchase price after closing adjustments.
Acquired Property
Approximate Location
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Disclaimer
Weyerhaeuser Company published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 14:37:06 UTC.