Slide 1: Investor Presentation December 2024
WEYERHAEUSER Investor Presentation December 2024 ANDY TAYLOR Vice President, Investor Relations AMANDA LUPER Senior Manager, Investor Relations Contact Us: (206) 539-3907 Contact Us: (206) 539-3907 Contact Us: (206) 539-3907
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2
Slide 3: Table of contents
Table of contents Company Overview Unmatched Portfolio Industry-Leading Performance Strong ESG Foundation Disciplined Capital Allocation Investment Thesis | 2025 Targets & Progress | Who We Are | What We Do | Why We Matter Timberlands | Real Estate, Energy & Natural Resources | Wood Products Operati
Slide 4: Investment thesis
Weyerhaeuser Investment thesis Superior Shareholder Value Unmatched Portfolio Industry-Leading Performance Disciplined Capital Allocation 4 Strong ESG Foundation
Slide 5: 2025 Year-End Targets
2025 YEAR-END TARGETS Driving Growth and Shareholder Value Unmatched Portfolio Industry-Leading Performance Strong ESG Foundation Disciplined Capital Allocation TIMBERLANDS GROWTH MAKE DISCIPLINED INVESTMENTS OF $1 BILLION FROM 2022 TO 2025 NATURAL CLIMATE SOLUTIONS GROW ANNUAL EBITDA TO $100 MILLIO
Slide 6: Making Progress Against Our Multi-Year Targets
TIMBERLANDS GROWTH INVESTED ~$775 MILLION INCLUDING ACQUISITIONS IN WASHINGTON, CAROLINAS, MISSISSIPPI & ALABAMA NATURAL CLIMATE SOLUTIONS INCREASED EBITDA BY 114% SINCE 2020 1ST FOREST CARBON CREDITS MONETIZED ~70 SOLAR AGREEMENTS SIGNED THREE CCS AGREEMENTS IN PLACE OPERATIONAL EXCELLENCE CAPTURED
Slide 7: Who we are
Who we are Largest Timber REIT with Unmatched & Complementary Industry-Leading Businesses TIMBERLANDS We are the largest private owner of timberlands in North America REAL ESTATE, ENERGY & NATURAL RESOURCES We capture the highest value from every acre WOOD PRODUCTS We are one of North America’s larg
Slide 8: What we do
DIVERSE CUSTOMER MIX that fully values our quality, scale, reliability and sustainable practices PROPRIETARY SEEDLINGS yield superior growth, wood quality and survival characteristics CUSTOMIZED PLANTING deploys the best genetic material for each acre on our land base TARGETED SILVICULTURE generates
Slide 9: Why we matter
Why we matter Long-Standing Focus on Sustainability We manage the most sustainable, versatile resource on earth: forests We are experts at using trees to make products people need We do it the right way so our forests will last forever WE ARE SUSTAINABLE BY NATURE OUR PORTFOLIO IS CLIMATE-FRIENDLY W
Slide 10: Unmatched Portfolio
UNMATCHED PORTFOLIO Timberlands Real Estate, Energy & Natural Resources Wood Products Our Quality, Diversity and Scale Cannot Be Replicated 10
Slide 11: Timberlands portfolio
Highly productive planted pine forests Balanced mix of grade & fiber logs Scale operations in every major region U.S. SOUTH Premium Southern Yellow Pine 7 MILLION ACRES Premium land west of Cascade mountains Sawlogs are ~90% of harvest Unique Japan export presence U.S. WEST High-Value Douglas Fir 2.
Slide 12: Timberlands: highlights
Timberlands: highlights Unmatched Quality, Scale and Diversification Adjusted EBITDA(1,2) by Region (2021-2023) REVENUE by END MARKET (2023) Third-Party Domestic 55% WY Mills 26% Export 19% ~$710 MILLION Adjusted EBITDA(1) | 3-Year Average ENDURING VALUE ACROSS MARKET CYCLES 12 OUR COMPETITIVE ADVAN
Slide 13: Competitive position: We are the largest Timber REIT
COMPETITIVE POSITION We Are the Largest Timber REIT Our Scale Across All Major Woodbaskets Our Integrated Manufacturing Allows us to flex volume and maximize overall returns Our Delivered Log Business Model Enables us to capture higher margins Acres in millions TIMBER REIT OWNERSHIP Weyerhaeuser Ray
Slide 14: Timberlands export markets
Weyerhaeuser TIMBERLANDS EXPORT MARKETS Unrivaled Market Position and Supply Chain Expertise UNIQUE JAPAN EXPORT BUSINESS Multi-decade relationships supplying post & beam housing market Western timberlands ownership provides premium logs at unrivaled scale Largest log export facility in North Americ
Slide 15: Western timberlands
Western timberlands Unmatched Quality, Scale and Market Access Our Timber Inventory Is Primarily High-Value Species Sources: Forisk Ownership Database 2023, tax parcel data (as available), public presentations, WY reports We have premium timberlands west of the Cascade mountains We hold the #1 posit
Slide 16: Southern timberlands
Southern timberlands Peer-Leading Scale and Market Access NC/VA MS/AL AR/OK/TX/LA TIMBER REIT OWNERSHIP Weyerhaeuser Rayonier PotlatchDeltic Our Scale is Unmatched Across Southern Markets 16 (2) Atlantic Coast includes Florida, Georgia, North Carolina and South Carolina. WY PCH RYN Sources: Forisk O
Slide 17: Timberlands growth strategy update
Timberlands growth Strategy update Disciplined Approach to Growing the Value of Our Timberlands ANNOUNCED ACQUISITIONS Approximate Location of Transaction Activity (1) Includes approximately $30 million of smaller bolt-on acquisitions, not separately announced. (2) Timberlands acquired in Q4 2023 i
Slide 18: Timberlands sustainability
100% OF OUR TIMBERLANDS ARE REFORESTED AFTER HARVEST TIMBERLANDS SUSTAINABILITY We Balance Our Harvesting with a Strong Foundation of Environmental Stewardship WE HARVEST ONLY 2% OF OUR FORESTS ON AVERAGE EACH YEAR WE LEAVE TREE BUFFERS ALONG WATERWAYS TO PROTECT AQUATIC HABITAT WE CERTIFY 100% OF O
Slide 19: Real estate, energy & natural resources portfolio management
WESTERN REGION U.S. SOUTH REAL ESTATE, ENERGY & NATURAL RESOURCES Generating Value Through End-to-End Portfolio Management Wind Conservation Real Estate (HBU) Mineral Royalties Conservation Mineral Royalties Mitigation Banking SOUTHERN REGION Applying expertise and technology to enhance portfolio va
Slide 20: Real estate, energy & natural resources: highlights
Real estate, energy & natural resources: highlights Consistent, Reliable Cash Generation | Growing Natural Climate Solutions ~$315 MILLION Adjusted EBITDA(1) | 3-Year Average ENDURING VALUE ACROSS MARKET CYCLES Natural Climate Solutions Adjusted EBITDA(1) Real Estate 66% ENR 34% OUR COMPETITIVE ADVA
Slide 21: Real estate business: higher and better use
REAL ESTATE BUSINESS We Continually Evaluate Every Acre to Unlock Higher and Better Use (HBU) Value (2) Since inception, following the Plum Creek merger in 2016. HBU Acreage by Region(1) South 83% North 3% West 14% (1) As of December 31, 2023. PREMIUM LAND SALES Maximizing Value from Each Acre Via H
Slide 22: Natural climate solutions business
NATURAL CLIMATE SOLUTIONS BUSINESS Leveraging Scale and Growing EBITDA as Markets Develop 22 EXPANDING OUR BUSINESS MODEL GROWING OUR EXISTING BUSINESSES PARTICIPATING IN THE EMERGING CARBON CREDIT MARKET FOREST CARBON CO2 Monetized initial credits from Maine pilot project Anticipating approval of t
Slide 23: Wood products portfolio
WOOD PRODUCTS PORTFOLIO Industry-Leading Scale, Diversification and Quality LUMBER ORIENTED STRAND BOARD ENGINEERED WOOD PRODUCTS DISTRIBUTION 2nd Largest Producer in North America 19 Lumber Mills(1) (5.5 BBF) 4th Largest Producer in North America 6 Oriented Strand Board Mills (3.2 BSF) Located in t
Slide 24: Wood products: highlights
Wood products: highlights Peer-Leading Performance, Superior Reliability and Preferred Supplier Peer-leading performance OUR COMPETITIVE ADVANTAGE Diverse customer mix & market demand drivers Strategically located in prime woodbaskets Expertise in transportation & logistics Relentless focus on peer-
Slide 25: Expanding engineered wood products portfolio
Expanding engineered wood products portfolio Strategic Investment to Build New TimberStrand® Facility in Monticello, Arkansas 25 Innovative and versatile solid section beam product Proprietary technology – high barrier to entry for others Diversified and growing end markets with applications in resi
Slide 26: Strong demographic fundamentals and housing deficit
Generation Z and Millennials are the largest population cohorts and have entered peak homebuying years Current homebuilding pace will not fully address the deficit resulting from a decade of underbuilding Current demand supported by low inventories for existing homes and incentives for new home purc
Slide 27: Repair and remodel fundamentals
Signs of improving R&R demand in certain end-markets Housing stock continues to age, with median age greater than 40 years Increased consumer savings, home equity and lock-in effect with elevated mortgage rates U.S. RETAIL BUILDING MATERIALS SALES TOTAL SPENDING Source: U.S. Census Bureau 2021 Ameri
Slide 28: Increased adoption of wood-based building
MASS TIMBER CONSUMPTION projected to increase >100% by 2028 INCREASED ADOPTION OF WOOD-BASED BUILDING Global Growth and Sustainability Attributes Driving Rising Demand for Wood Products Sources: United Nations, FEA Global Cross-Laminated Timber (CLT) Consumption Growth, Churkina et al. (Buildings as
Slide 29: Wood products sustainability
Wood products sustainability Reducing Our Impact | Offering Climate-Friendly Products WE CERTIFY 100% OF OUR WOOD FIBER SUPPLY TO THE Sustainable Forestry Initiative® Fiber Sourcing or Certified Sourcing Standards WE MEET MORE THAN TWO-THIRDS OF OUR OWN ENERGY NEEDS USING RENEWABLE BIOMASS ON AVERAG
Slide 30: Industry-Leading Performance
INDUSTRY-LEADING PERFORMANCE Operational Excellence Relative Competitive Performance Significant, Sustainable Margin Improvement Accelerated by Innovation Innovation 30
Slide 31: Operational excellence
OPERATIONAL EXCELLENCE Delivering Sustainable Margin Improvement Through the Cycle SUSTAINABLE MARGIN IMPROVEMENT Targeting $175-250 Million from 2022-2025 EXPANDING OUR REACH WITH OPX 2.0 Finding Opportunity in Every Corner Future Value World Class Execution on Critical Activities That Generate Lon
Slide 32: Delivering superior relative performance: OpX scorecard
DELIVERING SUPERIOR RELATIVE PERFORMANCE Our OpX Scorecard Sources for competitor data: Public filings. Results include only North American operations. (1) See appendix for definition of Adjusted EBITDA and reconciliation to GAAP amounts. (2) Wood Products peers include BlueLinx, Boise Cascade, Canf
Slide 33: Innovation
innovation Driving Significant Improvements Through Accelerated Focus on Innovation Automation & Robotics Unmanned Autonomous Vehicles Artificial Intelligence & Machine Learning Energy-Efficient Equipment 33
Slide 34: Strong ESG Foundation
STRONG ESG FOUNDATION Sustainability Strategy ESG Performance Sustainability Is a Core Value Carbon Record 34
Slide 35: Sustainable to our core
Sustainable to our core Strong ESG Performance | Clear Business Alignment | Ambitious Positive Impact OUR SUSTAINABILITY STRATEGY Maintain ESG Foundation Improve Business Alignment Demonstrate Positive Impact Ten-year roadmap to review and adjust ESG-related focus areas and strategies Set and meet a
Slide 36: Our carbon record
OUR CARBON RECORD We Remove Nearly Four Times More Carbon Dioxide Than We Emit For more information on our carbon record methodology visit carbonrecord.weyerhaeuser.com We Are Members of The Climate Pledge and Are Committed to Net-Zero Emissions by 2040 36 Metric tons of carbon dioxide equivalent (m
Slide 37: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION 37 Shareholder Returns Capital Expenditures Long-Term Commitment to Balancing Three Key Priorities Capital Structure
Slide 38: Disciplined capital allocation
INVEST IN OUR BUSINESSES RETURN CASH TO SHAREHOLDERS MAINTAIN AN APPROPRIATE CAPITAL STRUCTURE CORE ALLOCATION Investment Grade Credit Rating Disciplined Capital Expenditures Sustainable Base Dividend OPPORTUNISTIC ALLOCATION Value-Enhancing Growth Opportunities Liability Management Supplemental Div
Slide 39: Returning cash to shareholders
(1) See appendix for definition of Adjusted FAD and reconciliation to GAAP amounts. (2) Normally declared and paid annually in the first quarter, based on prior year results. RETURNING CASH TO SHAREHOLDERS Allocation Framework and Cash Return Calculation TARGETED RETURN OF CASH TO SHAREHOLDERS Calcu
Slide 40: Cash return framework in action
CASH RETURN FRAMEWORK IN ACTION Returned $783 Million of Cash to Shareholders Based on 2023 Results Returned $0.90 per share of dividends based on 2023 results Returned $125 million through opportunistic share repurchase Required no balance sheet or portfolio actions to achieve return commitment (1)
Slide 41: Returning cash to shareholders: dividend yield and allocation
41 DIVIDEND YIELD Calendar Year(2) 2021 3.7% 2022 6.7% 2023 5.1% ALLOCATION OF CASH RETURNS BASED ON 2021-2023 RESULTS $1.6 Billion Base Dividends $2.2 Billion Supplemental Dividends(1) $775 Million Share Repurchase Annual Payout of Adjusted FAD 2021 = 79% 2022 = 75% 2023 = ~80% (1) Supplemental div
Slide 42: Targeting 5% annual base dividend growth
TARGETING 5% ANNUAL BASE DIVIDEND GROWTH Driven by Timberlands, Natural Climate Solutions & Performance Improvements (1) Assumes current quarterly base dividend of $0.20 per share. 42 +5.9% +5.6% +5.3% Future BASE dividend (1) BASE DIVIDEND GROWTH DRIVERS Timberlands Targeted acquisitions and busine
Slide 43: Capital expenditures
CAPITAL EXPENDITURES Organic Investments to Sustain and Enhance Our Operations CAPITAL EXPENDITURES(1) $ in millions Wood Products: $290 million in 2024 Maintenance capex is $150-200 million Projects to improve costs and reliability Strategic lumber mill modernization Timberlands: $115 million in 20
Slide 44: Maintain an appropriate capital structure
Maintain AN appropriate capital structure Operating from a Strong Financial Position with Significant Flexibility NET DEBT TO ADJUSTED EBITDA (LTM) (1) INVESTMENT GRADE CREDIT PROFILE Baa2 Moody’s AMPLE LIQUIDITY OPPORTUNISTIC LIABILITY MANAGEMENT STRONG ASSET COVERAGE OVER 80% of business assets ar
Slide 45: Key Market Drivers
45 Current Market Dynamics Long-Term Demand Fundamentals Carbon Platform KEY MARKET DRIVERS
Slide 46: Current market dynamics for our products
LUMBER ORIENTED STRAND BOARD WESTERN LOGS SOUTHERN LOGS Current market dynamics for our products Improving sawlog demand with new mill capacity coming into the region WY fiber log demand generally stable Log pricing showing notable gains across several geographic sub-areas Emerging log export opport
Slide 47: Fundamental drivers shaping our industry
Rising Global Demand for Wood Fiber Increased Adoption of Wood-Based Building Increased Demand for Natural Climate Solutions Growing Demand for U.S. Housing 2 3 4 FUNDAMENTAL DRIVERS SHAPING OUR INDUSTRY We Are Well Positioned to Capitalize on These Opportunities 1
Slide 48: Our carbon platform
Our carbon platform Driving Long-Term Portfolio Value as Carbon Markets Develop LAND & FOREST Forest Carbon Credits Renewable Energy Mitigation & Conservation SUBSURFACE Carbon Capture & Sequestration WOOD PRODUCTS Carbon Storage ENHANCING VALUE OVER TIME Underlying Timberlands Value Increased Deman
Slide 49: Investment thesis
Weyerhaeuser Investment thesis Superior Shareholder Value Unmatched Portfolio Industry-Leading Performance Disciplined Capital Allocation 49 Strong ESG Foundation
Slide 50: Appendix
APPENDIX Additional Materials 50
Slide 51: Wood products sales realizations: current vs. 2024 Q3
WOOD PRODUCTS SALES REALIZATIONS: CURRENT VS. 2024 Q3 (1) Changes in average realizations typically lag changes in industry benchmark pricing due to length of order files. (2) WY reports OSB realizations in MSF 3/8”. Changes in average realizations typically lag changes in industry benchmark pricing
Slide 52: Lumber demand fundamentals and pricing
LUMBER DEMAND FUNDAMENTALS AND PRICING LUMBER PRICING FRAMING LUMBER COMPOSITE NORTH AMERICAN LUMBER CONSUMPTION BY END USE, 2023 Source: FEA Source: Random Lengths Q4 QTD as of 12/13/2024 Signs of improving repair & remodel demand in certain end-markets Single-family construction activity remains r
Slide 53: B.C. mill closures replaced by U.S. South capacity
Log supply declining in British Columbia due to fires, pine beetle and lower allowable cut Canadian lumber exports to the U.S. remain subject to duties Canadian share of lumber market has decreased U.S. Southern lumber production gaining share NORTH AMERICAN CAPACITY(1) % SHARE BY REGION NORTH AMERI
Slide 54: OSB demand fundamentals and pricing
OSB DEMAND FUNDAMENTALS AND PRICING Single-family construction activity remains resilient Current pricing above historical pre-pandemic levels Supportive long-term housing fundamentals Source: FEA ORIENTED STRAND BOARD PRICING 7/16” NORTH CENTRAL NORTH AMERICAN OSB CONSUMPTION BY END USE, 2023 Sourc
Slide 55: Western logs: tensioned market
Largest driver of demand is U.S. housing activity Generally stable Japanese demand for WY premium logs China has favorable longer-term import needs and faces constraints from suppliers in Europe and Russia WY able to rapidly flex China volume in response to changing markets JAPAN HOUSING STARTS WOOD
Slide 56: Southern logs: sawmill capacity additions
SAWMILL CAPACITY ADDITIONS COMPLETED & ANNOUNCED BY STATE 2017-2024(2) Sawlog demand improving as capacity increases; WY’s timberlands are well positioned to benefit WY fiber log demand generally stable Log pricing showing notable gains across several geographic sub-regions Additional upside opportu
Slide 57: NCREIF Timberland Index
NCREIF Timberland INDEX INDEXED MARKET VALUE Per Acre, by Region Source: National Council of Real Estate Investment Fiduciaries (NCREIF) Timberland Index. Changes in index composition may affect average market values (e.g., NCREIF Northwest expanded to include Idaho in 2013). YTD as of September 202
Slide 58: Active timberlands portfolio management
ACTIVE TIMBERLANDS PORTFOLIO MANAGEMENT Increasing Cash Flows and Portfolio Value (1) Acquisitions include mid-coastal Oregon (2020), southwest Alabama (2021), North and South Carolina (2022, 2023), Mississippi (2023) and a small property in Coastal Washington (2021). Divestitures include Montana (2
Slide 59: Delivering superior relative performance: OpX scorecard
DELIVERING SUPERIOR RELATIVE PERFORMANCE Our OpX Scorecard TIMBERLANDS ADJUSTED EBITDA(1,2) PER ACRE WEST SOUTH Weyerhaeuser Timberlands & ENR vs Peers Weyerhaeuser Timberlands & ENR vs Peers Sources for competitor data: Public filings. Results include only North American operations. (1) See appendi
Slide 60: Recognized ESG leader
Recognized ESG Leader Sustained High Performance in Major Ratings and Rankings MSCI ESG Rating S&P Global ESG Best-in-class among North American companies and peers Committed to enhancing our performance and achieving full recognition for our strong practices Included in major ESG indices, including
Slide 61: Well-laddered debt profile
WELL-LADDERED DEBT PROFILE (1) Excludes $250 million of variable rate debt. (2) Revolving credit facility was undrawn as of March 31, 2024. This credit facility has a capacity of $1.5 billion and expires in March 2028. $5.1 billion of long-term debt outstanding 95% fixed rate Weighted average maturi
Slide 62: Our company vision
OUR COMPANY VISION @) U R Vi iS | @) N Working together to be the world’s premier 242 HOW WE WIN » 4 Safety Integrity Citizenship Sustainability Inclusion timber, land, and forest products company WHAT IT LOOKS LIKE 4 KEY WEYERHAEUSER BEHAVIORS A TRULY GREAT COMPANY Develop our people Act with urgen
Slide 63: Adjusted EBITDA reconciliation
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 64: Net debt to Adjusted EBITDA reconciliation
$ Millions 2017 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Debt to Adjusted EBITDA (LTM) (1,2,3) 3.6 3.3 2.9 2.5 2.5 2.2 2.5 3.0 3.3 3.9 4.7 4.9 4.5 4.1 2.9 2.3 1.5 0.9 0.7 0.8 0.9 0.8 0.8 1.0 1.7 2.2 2.2 2.3 2.
Slide 65: Adjusted EBITDA reconciliation by segment
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 66: Wood Products Adjusted EBITDA reconciliation
$ Millions 2011 2012 2013 2014 2015 2016(1) 2017 2018 2019 2020 2021 2022 2023 Lumber ($7) $130 $317 $319 $212 $289 $459 $459 $183 $799 $1,630 $1,103 $83 OSB (4) 143 247 46 41 183 359 329 59 466 1,292 879 250 EWP 6 17 45 79 114 145 173 177 207 188 285 585 455 Distribution (37) (29) (33) 2 10 25 38 3
Slide 67: Real Estate, Energy & Natural Resources Adjusted EBITDA reconciliation
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjuste
Slide 68: Natural Climate Solutions Adjusted EBITDA
(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Adjusted EBITDA should not be considered i
Slide 69: Adjusted Funds Available for Distribution reconciliation
ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION (FAD) RECONCILIATION $ Millions 2017 2018 2019 2020 2021 2022 2023 Net cash from operations $1,201 $1,112 $966 $1,529 $3,159 $2,832 $1,433 Capital expenditures (excluding discontinued operations) (419) (427) (384) (281) (441) (468) (447) Funds Available for