21 slides from Rayonier Inc. Reit's earnings presentation, Aug 1, 2023
Slide 1: Q2 2023 Earnings
Q2 2023 EARNINGS August 1, 2023 4\PotlatchDeltic.
Slide 2: Forward-Looking Statements & Non-GAAP Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenu
Slide 3: Key Highlights Q2 2023
KEY HIGHLIGHTS Q2 2023 STRATEGY 4, Leverage to lumber prices + Mills & indexed Idaho logs + Strategy aligned with fundamentals + Provides discretionary capital 4. Timberlands provide stability + >80% of gross asset value + Sustainable management benefits society + Supports sustainable, growing divid
Slide 4: Consolidated Results
CONSOLIDATED Q2 Total Adjusted EBITDDA of $45.5 million reflects higher lumber RESULTS prices offset by seasonal declines in harvest volumes and fewer tural acres sold. Total Adjusted EBITDDA - Q1 2023 to Q2 2023 Variance $57.7 $11.9 $0.1 $0.3 $45.5 $(7.3) $(47.2) $ MILLIONS Qt 2023 Timberlands Wood
Slide 5: Timberlands Results
Q2 2023 Timberlands Adjusted EBITDDA of $29.4 million reflects seasonally TIMBERLANDS RESULTS lower harvest volumes. Timberlands Adjusted EBITDDA - Q1 2023 to Q2 2023 Variance 46.6 ze a fn . 5 $(1.8) r $29.4 = (2.6) = = A Q1 2023 Harvest Volume Sales Price & Mix Forest Mgmt & Other Q2 2023 Key Timbe
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $300 500 $60 16 = 4g 250 3 $50 $46 ; ag “7 E 2 &§ s =n 300 2 e ii og &% $150 eS @ $30 8 2 g S159 2 & 6 © & $100 a & $20 Bs 5 a2 $60 100 3 $10 | 7 3 > off i i Qi Q2 Q3 Qs ai a2 Q3 a4 at a2 Q1 Q
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume 584 700 $35 _ 700 $50 $48600 @ $30 600 g 2 5 $25 500 8 “ . : - $20 400 z 5 $30 400 & s = 8 300 5 8 85 300 5 20 ie & & 200 % = $10 200 2 an $10 100 3 $5 100 ai a2 @3 a4 a a2 OG a am a Q a2 Q3 a
Slide 8: Wood Products Results
WOOD PRODUCTS Wood Products Adjusted EBITDDA in Q2 2023 increased primarily due to RESUS: higher lumber pricing. Wood Products Adjusted EBITDDA - Q1 2023 to Q2 2023 Variance $4.4 $0.2 $(0.2) $ MILLIONS Q1 2023 Manufacturing Cost Log Cost Volume Residuals, Panels & Other Q2 2023 Lumber Key Consolidat
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 $200 350 $1,000 _ 7 80 30 $150 g $800 250 = & $600 20 «Z $100 3 $476 o 2 $400 100 $200 ‘0 @ “ 50 I $11.9 oe ee = i B il — : Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Qt Q2 Q3 Q4 at Q2 Q3 a4 at Q2 2021 20
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA declined in Q2 2023 primarily due to fewer REAL ESTATE RESULTS rural land sales partially offset by more development land sales in Chenal Valley. Real Estate Adjusted EBITDDA — Q1 2023 to Q2 2023 Variance $19.5 na S = ' $0.3 $12.2 = C= A $(13.8) Qt 2023 Rural Sales Devel
Slide 11: Real Estate Results
REAL ESTATE RESULTS Rural Acres Sold and Average Price Residential Lots Sold and Average Price $5.250 een $140,000 im @ $4,500 12,500 oe EMD 80 ~ 5 s 2 = $3,750 10,000 5 $100,000 $107,126 e 3 P i $80,000 S ee 7,500 = x 3 @, $2,250 8 @ $60,000 0 § 8 S $1,500 5000 B $40.00 |: z * 9750 941 2,500 $20,00
Slide 12: Favorable Capital Structure
FAVORABLE CAPITAL Our strong balance sheet and $630 million of liquidity provide a solid platform to STRUCTURE continue to grow shareholder value over the long term. Debt Maturities $200 $176 $190 $185 a ‘$150 $139 = $100 $100 =a $100 = $40 $40 $40 we 2 $28 »_ = a 2023 2024 2025 2026 2027 2028 2029
Slide 13: Outlook
OUTLOOK We anticipate Q3 2023 Total Adjusted EBITDDA will be greater than Q2 2023 due primarily to higher lumber prices and a seasonal increase in harvest volumes. TIMBERLANDS Harvest Volume Geographic harvest Sawlog mix Sawlog pricing Q3 2023 1.9- 2.0 million tons ~82% of volume in South North: ~99
Slide 14: Appendix
APPENDIX Q2 2023
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts — unaudited 2022 2023 a OF al OS) cee re Re oN IO Operating income (loss): Timberlands $ 64.2 $ 464 §$ 475 $ 31.7 $ 189.8 $ 262 $ 134 $ 396 Wood Products 143.1 99.0 212 (8.4) 254.9 (11.1) 4.1 (10.0) Real Estate 19.0 14.4 ret 2a 426 8.7 Te: 1
Slide 16: Operating Segment Non-GAAP Reconciliation
OPERATING SEGMENT Non — GAAP Reconciliation ADJUSTED EBITDDA in millions — unaudited 2022 2023 pep ane Oe TOA pe eee OF TOT. Timberlands Northern Timberlands operating income $ 56.7 §$ 41.0 $ 42.3 § 274 $ 167.4 $ 17.2 $ 87 $ 25.9 Depreciation, depletion and amortization __ (rr 1 a Pie ee Pee BO. eee
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non — GAAP Reconciliation EBITDDA & CAD in millions — unaudited 2022 2023 a ar a ee, ee hd 2 a Total Adjusted EBITDDA Net Income (GAAP) $ 163.9 § 120.2 $ 46.0 $ 3.8 $ 333.9 $ 163 $ 223 $ 386 Interest expense, net 29 74 8.3 8.8 27.4 0.2 76 78 Income taxes a2 28.2 98 (4.7) 65.4 (3.5) 64
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2022 2023 Qi Q2 a3 a4 TOTAL a @2 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 385,290 276,347 459,128 455,993 1,576,758 470,790 319,173 789,963 Pulpwood 82581098887 goss 39.882 8.028 7.989 16,018 Total 393,549 287,730 470,325 465,036 1,616,640 478,819
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2022 2023 | @2... 3 TOTAL. ___ Qt @2___ TOTAL _ Wood Products Lumber shipments (MBF) 233,188 254,225 264,748 257,587 1,009,748 261,633 280,251 541,884 Lumber sales prices ($per MBF) $ 1,075 $ 865 $ 572 $ 473 $ 737 $ 435 $ 476 $ 456 Real Estate Rura
Slide 20: Definitions
DEFINITIONS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income adjusted for interest expense, net, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, pension settlement charge, en
Slide 21: Q2 2023 Earnings
Q2 2023 WAYNE WASECHEK EARNINGS Interim Vice President, Chief Financial Officer and Chief Accounting Officer August 1, 2023 & \ PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com. xe , : 4\PotlatchDeltic