Slide 1: Weyerhaeuser Earnings Results 1st Quarter 2018
WEYERHAEUSER EARNINGS RESULTS 1ST QUARTER 2018 | April 27, 2018
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 future earnings, cash flow, adjusted EBITD
Slide 3: 2018 Q1 Consolidated Results
Chart 1 2018 Q1 CONSOLIDATED RESULTS $ Millions 2017 2018 $ Millions EXCEPT EPS 2017 2018 Adjusted EBITDA Q4 Q1 Change Consolidated Statement of Operations Before Q4 Q1 Special Items Timberlands $ 252 $ 268 $ 16 Net sales $ 1,823 $ 1,865 Real Estate, Energy & Natural Resources 87 41 (46) Cost of pro
Slide 4: Earnings Before Special Items
Chart 2 EARNINGS BEFORE SPECIAL ITEMS $ Millions EXCEPT EPS 2017 Q4 2018 Q1 Pre-Tax After-Tax Diluted Pre-Tax After-Tax Diluted Earnings Earnings EPS Earnings Earnings EPS Earnings Before Special Items $ 288 $ 234 $ 0.31 $ 307 $ 275 $ 0.36 Special Items: Plum Creek merger and integration-related cos
Slide 5: Adjusted EBITDA
Chart 3 ADJUSTED EBITDA1 2 Adjusted EBITDA Adjusted EBITDA (millions) (millions) Real Estate $ 29 $ 20 $ 58 $ 71 $ 27 ENR $ 14 $ 17 $ 16 $ 16 $ 14 Adjusted EBITDA Adjusted EBITDA (millions) (millions) Lumber $ 99 $ 127 $ 117 $ 116 $ 140 West $ 133 $ 124 $ 111 $ 140 $ 165 OSB $ 66 $ 87 $ 102 $ 104 $
Slide 6: Timberlands Segment
Chart 4 TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions)1 2017 2018 TIMBERLANDS ($ Millions)1 2017 2018 Adjusted EBITDA by Region Q4 Q1 Segment Statement of Operations Q4 Q1 West $ 140 $ 165 Third party sales $ 483 $ 490 South 101 98 Intersegment sales 140 142 North 9 6 Total Sales 623 632 Other 2 (1) C
Slide 7: Sales Volumes, Realizations and Export Sales
SALES VOLUMES, Chart 5 REALIZATIONS AND EXPORT SALES 1 Volumes (Thousands of tons) Volumes (Thousands of tons) Volumes (Thousands of tons) Japan 70% 65% 62% 68% 72% 1. Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. China 24% 26% 29%
Slide 8: Fee Harvest Volumes and Intersegment Sales Volumes
FEE HARVEST VOLUMES Chart 6 AND INTERSEGMENT SALES VOLUMES South West North 8 April 27, 2018
Slide 9: Real Estate, Energy & Natural Resources (ENR) Segment
REAL ESTATE, ENERGY & Chart 7 NATURAL RESOURCES (ENR) SEGMENT Real Estate & ENR ($ Millions) 2017 2018 Real Estate & ENR ($ Millions) 2017 2018 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Real Estate $ 71 $ 27 Total sales $ 100 $ 51 Energy & Natural Resources 16 14 Cost o
Slide 10: Real Estate, Energy & Natural Resources (ENR) Segment
REAL ESTATE, ENERGY & Chart 8 NATURAL RESOURCES (ENR) SEGMENT Price per acre 10 April 27, 2018
Slide 11: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 9 WOOD PRODUCTS ($ Millions) 2017 2018 WOOD PRODUCTS ($ Millions) 2017 2018 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Lumber $ 116 $ 140 Total sales $1,228 $ 1,309 OSB 104 92 Cost of products sold 947 1,005 Engineered Wood Products 34 45 Gros
Slide 12: 3rd-Party Sales Volumes and Realizations
3RD-PARTY SALES VOLUMES Chart 10 AND REALIZATIONS1 1. Sales volumes include sales of internally produced products and products purchased for resale primarily through our Distribution business. 12 April 27, 2018
Slide 13: Unallocated Items
UNALLOCATED ITEMS Chart 11 UNALLOCATED ITEMS ($ Millions)1 2017 2018 UNALLOCATED ITEMS ($ Millions) 2017 2018 Q4 Q1 By Natural Expense Q4 Q1 Unallocated corporate function expenses and variable compensation expense $ (18) $ (18) Cost of products sold2 (17) (29) Liability classified share-based compe
Slide 14: Financial Items
FINANCIAL ITEMS Chart 12 KEY FINANCIAL METRICS 2017 2018 ($ Millions) Q4 Q1 Ending Cash Balance $ 824 $ 598 Long-Term Debt1 $ 5,992 $ 5,928 Net Debt to Adjusted EBITDA (LTM)2 2.5 2.5 Net Debt to Enterprise Value3 16% 17% Scheduled Debt Maturities as of March 31, 2018 ($ Millions) 2018 2019 2020 2021
Slide 15: Outlook: 2018 Q2 vs. 2018 Q1
OUTLOOK: 2018 Q2 vs. 2018 Q1 Chart 13 SEGMENT COMMENTS TIMBERLANDS ● Slightly higher Western log sales realizations ● Comparable Southern log sales realizations ● Seasonally higher unit logging costs and increased road and forestry costs ● Expect earnings and Adjusted EBITDA will be significantly hi
Slide 16: Earnings Summary
EARNINGS SUMMARY Chart 14 $ Millions EXCEPT EPS 2017 2018 Adjusted EBITDA by Segment Q1 Q2 Q3 Q4 Q1 Timberlands $ 242 $ 222 $ 220 $ 252 $ 268 Real Estate, Energy & Natural Resources 43 37 74 87 41 Wood Products 207 274 278 258 286 Unallocated Items (38) (27) (3) (46) (51) Total Adjusted EBITDA1 $ 45
Slide 17: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 15 $ Millions EXCEPT EPS 2017 2018 Q1 Q2 Q3 Q4 Q1 Diluted EPS Before Special Items $ 0.22 $ 0.28 $ 0.34 $ 0.31 $ 0.36 Special Items: Plum Creek merger and integration-related costs (0.01) — — (0.02) — Restructurings, impairments, and other charges — (0.20) (0.
Slide 18: Adjusted EBITDA Reconciliation by Segment
ADJUSTED EBITDA RECONCILIATION Chart 16 BY SEGMENT $ Millions 2017 2018 Q1 Q2 Q3 Q4 Q1 Timberlands $ 242 $ 222 $ 220 $ 252 $ 268 Real Estate & ENR 43 37 74 87 41 Wood Products 207 274 278 258 286 Unallocated Items (38) (27) (3) (46) (51) Adjusted EBITDA1 $ 454 $ 506 $ 569 $ 551 $ 544 Depletion, depr
Slide 19: Adjusted EBITDA Reconciliation: Timberlands
ADJUSTED EBITDA RECONCILIATION: Chart 17 TIMBERLANDS $ Millions 2017 2018 Q1 Q2 Q3 Q4 Q1 West $ 133 $ 124 $ 111 $ 140 $ 165 South 96 91 95 101 98 North 8 2 4 9 6 Other 5 5 10 2 (1) Total Timberlands Adjusted EBITDA1 $ 242 $ 222 $ 220 $ 252 $ 268 West (31) (29) (26) (28) (29) South (45) (43) (49) (51
Slide 20: Adjusted EBITDA Reconciliation: Real Estate, Energy and Natural Resources
ADJUSTED EBITDA RECONCILIATION: Chart 18 REAL ESTATE, ENERGY AND NATURAL RESOURCES $ Millions 2017 2018 Q1 Q2 Q3 Q4 Q1 Real Estate $ 29 $ 20 $ 58 $ 71 $ 27 Energy & Natural Resources 14 17 16 16 14 Total Real Estate, Energy & Natural Resources Adjusted EBITDA1 $ 43 $ 37 $ 74 $ 87 $ 41 Depletion, dep
Slide 21: Adjusted EBITDA Reconciliation: Wood Products
ADJUSTED EBITDA RECONCILIATION: Chart 19 WOOD PRODUCTS $ Millions 2017 2018 Q1 Q2 Q3 Q4 Q1 Lumber1 $ 99 $ 127 $ 117 $ 116 $ 140 OSB 66 87 102 104 92 EWP 37 52 50 34 45 Distribution 8 13 12 5 15 Other (3) (5) (3) (1) (6) Total Wood Products Adjusted EBITDA2,3 $ 207 $ 274 $ 278 $ 258 $ 286 Lumber (15)
Slide 22: Adjusted EBITDA Reconciliation: Unallocated
ADJUSTED EBITDA RECONCILIATION: Chart 20 UNALLOCATED $ Millions 2017 2018 Q1 Q2 Q3 Q4 Q1 Total Unallocated Adjusted EBITDA1 $ (38) $ (27) $ (3) $ (46) $ (51) Total depletion, depreciation, and amortization (1) (2) (2) — (1) Unallocated pension service costs (2) — (1) (1) — Special items (12) (2) (6)
Slide 23: Net Debt to Adjusted EBITDA Reconciliation
NET DEBT TO ADJUSTED EBITDA Chart 21 RECONCILIATION $ MILLIONS 2017 2018 Q4 Q1 Net Debt to Adjusted EBITDA (LTM)1,2 2.5 2.5 Long-Term Debt $ 5,992 $ 5,928 Less: Cash and Cash Equivalents 824 598 Net Debt $ 5,168 $ 5,330 Adjusted EBITDA (LTM)2 $ 2,080 $ 2,170 Depletion, depreciation & amortization (5