JAMES (MIKE) M.BRANSON
Senior Vice President, Timberlands

SITUATION SNAPSHOT

• Wood fiber markets in Latin America, China, Japan and other Asian countries are growing rapidly.
• While currently affected by the housing cycle, long-term demand for softwood fiber in the United States remains strong.
• Offshore structural lumber producers face cost disadvantages when shipping to the United States.
• Natural events — such as hurricanes, wind storms, pest outbreaks and wildfires — are affecting North American forest conditions and timber supplies.
• Increasing interest in nontimber use of forestlands, such as mineral exploration and energy production, is creating new opportunities.
• Current federal tax policies result in higher tax rates for C corporations such as Weyerhaeuser than for other timberlands ownership structures.

OPERATING STRATEGY

• Lead the industry in safety, environmental performance and value generation.
• Improve how we sustainably manage forests to meet customer and public expectations.
• Reduce the time it takes to realize returns by practicing precision forest management and participating aggressively in the most advantageous markets.
• Grow minerals, gas, biofuels and environmental credits programs.
• Build long-term relationships with customers who rely on a consistent supply of high-quality raw material.
• Work closely with Weyerhaeuser businesses to efficiently deliver fiber into internal supply chains at market prices.
• Continuously review our portfolio to improve productivity, lower risk and create more value.