Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q1 2017 Earnings Presentation
24 slides from Weyerhaeuser's earnings presentation, Apr 28, 2017
Slide 1: Weyerhaeuser Earnings Results 1st Quarter 2017
WEYERHAEUSER EARNINGS RESULTS 1 1ST QUARTER 2017 | April 28, 2017 4/28/2017
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This slide 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, Section 27A of the Securities Act of 1933, and Section 21E of
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES ▪ During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is included in this presentation which is available on the company’s website at www.weyerhaeuser.com
Slide 4: 2017 Q1 Consolidated Results
2017 Q1 CONSOLIDATED RESULTS Chart 1 $ Millions 2016 2017 $ Millions EXCEPT EPS 2016 2017 Adjusted EBITDA Q4 Q1 Change Consolidated Statement of Operations Before Q4 Q1 Special Items Timberlands $ 223 $ 242 $ 19 Net sales $ 1,596 $ 1,693 Real Estate, Energy & Natural Resources 90 43 (47) Cost of pro
Slide 5: Earnings Before Special Items
EARNINGS BEFORE SPECIAL ITEMS Chart 2 $ Millions EXCEPT EPS 2016 Q4 2017 Q1 Pre-Tax After-Tax Diluted Pre-Tax After-Tax Diluted Earnings Earnings EPS Earnings Earnings EPS Earnings From Continuing Operations Before Special Items $ 115 $ 106 $ 0.14 $ 193 $ 167 $ 0.22 Special Items: Plum Creek merger-
Slide 6: Timberlands Segment
TIMBERLANDS SEGMENT1 Chart 3 TIMBERLANDS ($ Millions) 2016 2017 TIMBERLANDS ($ Millions) 2016 2017 Adjusted EBITDA by Region Q4 Q1 Segment Statement of Operations Q4 Q1 West $ 101 $ 133 Third party sales $ 455 $ 469 South 112 96 Intersegment sales2 144 131 North 7 8 Total Sales 599 600 Other 3 5 Cos
Slide 7: Sales Volumes and Realizations
SALES VOLUMES AND REALIZATIONS Chart 4 1 1 Volumes (Thousands of tons) Volumes (Thousands of tons) Volumes (Thousands of tons) 1. Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. 7 4/28/2017
Slide 8: Export Sales, Fee Harvest Volumes, and Intersegment Sales Volumes
EXPORT SALES, FEE HARVEST VOLUMES, Chart 5 AND INTERSEGMENT SALES VOLUMES 1, 2 3 South West North 2017 Q1 Japan China Korea 1. For Northern timberlands, intersegment log sales volumes were 14 thousand tons in first quarter 2016, 92 thousand tons in the second quarter 2016, 107 thousand tons in third
Slide 9: Real Estate, Energy & Natural Resources (ENR) Segment
REAL ESTATE, ENERGY & Chart 6 NATURAL RESOURCES (ENR) SEGMENT1 Real Estate & ENR ($ Millions) 2016 2017 Real Estate & ENR ($ Millions) 2016 2017 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Real Estate $ 75 $ 29 Third party sales $ 101 $ 53 Energy & Natural Resources 15 14
Slide 10: Real Estate, Energy & Natural Resources (ENR) Segment Adjusted EBITDA
REAL ESTATE, ENERGY & Chart 7 NATURAL RESOURCES (ENR) SEGMENT 1 Adjusted EBITDA (in millions) Real Estate $26 $17 $24 $75 $29 ENR $8 $11 $13 $15 $14 1. Our definition of Adjusted EBITDA and a reconciliation to GAAP are set forth on Chart 18. 10 4/28/2017
Slide 11: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 8 WOOD PRODUCTS ($ Millions) 2016 2017 WOOD PRODUCTS ($ Millions) 2016 2017 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Lumber $ 57 $ 99 Third party sales $ 1,032 $ 1,154 OSB 46 66 Intersegment sales 7 — Engineered Wood Products 26 37 Total sal
Slide 12: 3rd-Party Sales Volumes and Realizations
3RD-PARTY SALES VOLUMES AND Chart 9 REALIZATIONS1 1. Sales volumes include sales of internally produced products and products purchased for resale primarily through our Distribution business. 12 4/28/2017
Slide 13: Unallocated Items
UNALLOCATED ITEMS Chart 10 UNALLOCATED ITEMS ($ Millions)1 2016 2017 UNALLOCATED ITEMS ($ Millions) 2016 2017 Q4 Q1 By Natural Expense Q4 Q1 Unallocated corporate function expenses $ (25) $ (19) Cost of products sold3 $ (12) $ (11) Unallocated share-based compensation 2 (6) G&A expenses4 (25) (25) U
Slide 14: Key Financial Metrics and Debt Maturities
UNALLOCATED ITEMS Chart 11 Includes discontinued operations KEY FINANCIAL METRICS 2016 2017 ($ Millions) Q4 Q1 Ending Cash Balance $ 676 $ 455 Long-Term Debt1 $ 6,610 $ 6,606 Gross Debt to Adjusted EBITDA (LTM)2 4.2 3.9 Net Debt to Enterprise Value3 21% 19% Excluding $494 million of cash paid for in
Slide 15: Outlook: 2017 Q2
OUTLOOK: 2017 Q2 Chart 12 SEGMENT COMMENTS TIMBERLANDS Lower Western harvest volumes and higher logging, road and forestry costs, partially offset by slightly higher average log realizations Higher fee harvest volumes and seasonally higher silviculture and forestry costs in South Average log s
Slide 16: Appendix
APPENDIX 16 4/28/2017
Slide 17: Pension and Postretirement Expense
PENSION AND POSTRETIREMENT EXPENSE Chart 13 $ Millions 2016 2017 Net Pension and Postretirement Cost (Credit) Q1 Q2 Q3 Q4 Q1 Timberlands $ 2 $ 2 $ 2 $ 2 $ 2 Real Estate, Energy & Natural Resources — — — — — Wood Products 5 6 6 5 6 Unallocated pension service costs 2 — 2 1 2 Non-operating pension and
Slide 18: Earnings Summary
EARNINGS SUMMARY Chart 14 $ Millions 2016 2017 Adjusted EBITDA by Segment Q1 Q2 Q3 Q4 Q1 Timberlands $ 199 $ 220 $ 223 $ 223 $ 242 Real Estate, Energy & Natural Resources 34 28 37 90 43 Wood Products 117 189 203 132 207 Unallocated Items (14) (24) (29) (45) (38) Total Adjusted EBITDA1 $ 336 $ 413 $
Slide 19: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 15 $ Millions EXCEPT EPS 2016 2017 Q1 Q2 Q3 Q4 Q1 Weighted Average Shares Outstanding, Diluted 635 748 754 753 755 Diluted EPS from Continuing Operations Before Special Items $ 0.20 $ 0.17 $ 0.23 $ 0.14 $ 0.22 Special Items: Gain on sale of non-strategic asset
Slide 20: Adjusted EBITDA Reconciliation by Segment
ADJUSTED EBITDA RECONCILIATION Chart 16 BY SEGMENT $ MILLIONS 2016 Q4 2017 Q1 Real Real Estate & Wood Unallocated Estate & Wood Unallocated Timberlands ENR Products Items Total Timberlands ENR Products Items Total Adjusted EBITDA1 $ 223 $ 90 $ 132 $ (45) $ 400 $ 242 $ 43 $ 207 $ (38) $ 454 Depletion
Slide 21: Adjusted EBITDA Reconciliation: Timberlands
ADJUSTED EBITDA RECONCILIATION: Chart 17 TIMBERLANDS $ MILLIONS 2016 Q4 2017 Q1 West South North Other Total West South North Other Total Adjusted EBITDA1 $ 101 $ 112 $ 7 $ 3 $ 223 $ 133 $ 96 $ 8 $ 5 $ 242 Depreciation, depletion & amortization (28) (52) (5) (15) (100) (31) (45) (5) (13) (94) Specia
Slide 22: Adjusted EBITDA Reconciliation: Real Estate, Energy & Natural Resources
ADJUSTED EBITDA RECONCILIATION: Chart 18 REAL ESTATE, ENERGY & NATURAL RESOURCES $ Millions 2016 Q4 2017 Q1 Energy & Energy & Natural Natural Real Estate Resources Total Real Estate Resources Total Adjusted EBITDA1 $ 75 $ 15 $ 90 $ 29 $ 14 $ 43 Depletion, depreciation & amortization — (4) (4) — (3)
Slide 23: Adjusted EBITDA Reconciliation: Wood Products
ADJUSTED EBITDA RECONCILIATION: Chart 19 WOOD PRODUCTS $ Millions 2016 Q4 2017 Q1 Lumber OSB EWP Distribution Other Total Lumber OSB EWP Distribution Other Total Adjusted EBITDA1, 2 $ 57 $ 46 $ 26 $ 5 $ (2) $ 132 $ 99 $ 66 $ 37 $ 8 $ (3) $ 207 Depletion, depreciation & amortization (14) (8) (10) (1)
Slide 24: Gross Debt to Adjusted EBITDA Reconciliation
GROSS DEBT TO ADJUSTED EBITDA Chart 20 RECONCILIATION $ MILLIONS 2016 2017 Q4 Q1 Gross Debt to Adjusted EBITDA (LTM)1, 2 4.2 3.9 Long-Term Debt $ 6,610 $ 6,606 Adjusted EBITDA (LTM)2 $ 1,583 $ 1,701 Depletion, depreciation & amortization (512) (541) Basis of real estate sold (109) (106) Unallocated