Slide 1: Earnings Release – 4th Quarter 2011
WEYERHAEUSER Earnings Release – 4th Quarter 2011 02/03/2012 • 1
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This 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. These statements are based on various assumptions and may not be acc
Slide 3: Statements Relating to Non-GAAP Financial Measures
STATEMENTS RELATING TO 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 a
Slide 4: 2011 Q4 Consolidated Results
2011 Q4 CONSOLIDATED RESULTS Chart 1 2011 Q4 $ Millions except EPS 2011 2011 Revenues from Continuing Contribution to Pre-Tax Earnings $1,615 Q3 Q4 Operations ($ Millions) Before Special Items Net Earnings Timberlands $62 $70 $77 Before Special Items ($ Millions)1. Wood Products (43) (61) Diluted Ea
Slide 5: Diluted EPS Before Special Items
DILUTED EPS BEFORE SPECIAL ITEMS1 Chart 2 A reconciliation to GAAP EPS is available on Chart 14 and at www.weyerhaeuser.com $0.80 $0.60 $0.40 $0.25 $0.20 $0.20 $0.12 $0.14 $0.10 $0.06 $0.00 $0.00 -$0.07 -$0.20 -$0.40 -$0.60 -$0.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 1. Weyerhaeuser’s share count incre
Slide 6: Reconciliation to GAAP
RECONCILIATION TO GAAP Chart 3 $ Millions except EPS Diluted EPS Net Earnings 1 2011 2011 2011 2011 Q3 Q4 Q3 Q4 Diluted EPS / Net Earnings Before Special Items $0.12 $0.14 $66 $77 Income Tax Adjustments and Credits 0.15 83 Gain on Sale of Assets and Operations 0.06 32 Charges for Restructuring and I
Slide 7: Changes in Contribution to Earnings by Segment
CHANGES IN CONTRIBUTION Chart 4 TO EARNINGS BY SEGMENT Earnings Before Special Items, Interest Expense and Taxes ($ millions)1 $250 $200 8 162 8 31 $150 140 (6) (18) (1) $100 $50 $0 -$50 2011 Q3 Timberlands Wood Cellulose Real Estate Corp & Other Discontinued 2011 Q4 Products Fibers Operations 1. A
Slide 8: Timberlands Segment
TIMBERLANDS SEGMENT Chart 5 Timberlands ($ Millions) 2011 Q3 2011 Q4 4th Quarter Notes Earnings from disposition of non-strategic Third Party Revenues1. $248 $269 timberlands increased $17 million Inter-Segment Revenues1. $102 $102 Higher fee harvest volumes, primarily in the South Contribution
Slide 9: Fee Harvest and 3rd-Party Log Realizations: Western/Southern Timberlands
FEE HARVEST AND 3RD-PARTY LOG REALIZATIONS: WESTERN/SOUTHERN TIMBERLANDS Chart 6 Fee Harvest Volume Average 3rd-Party Realizations — Logs 3000 120 109 2668 110 104 100 100 2535 98 2600 100 95 91 2355 South (m3) 90 84 2140 2116 2180 West ($/m3) 2200 2060 80 (Thousands) ($/m3) 1881 70 1800 60 1747 50
Slide 10: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 7 Wood Products ($ Millions) 2011 Q3 2011 Q4 4th Quarter Notes Revenues from Continuing Operations $603 $542 Seasonally lower selling prices and volumes Contribution from Continuing Operations for most products ($43) ($61) Lower operating rates to match weaker Before
Slide 11: Average 3rd-Party Realizations: OSB and Lumber/Engineered Wood Products
AVERAGE 3RD-PARTY REALIZATIONS: Chart 8 OSB AND LUMBER/ENGINEERED WOOD PRODUCTS OSB and Lumber Engineered Wood Products 500 2400 450 2200 400 Solid Section ($/CCF) 2000 1905 348 Lumber ($/MBF) 1849 1854 1851 1865 350 317 1785 1783 315 ($/Thousand) 293 301 301 296 1800 1718 ($/Unit) 287 300 1600 250
Slide 12: Cellulose Fibers Segment
CELLULOSE FIBERS SEGMENT Chart 9 Cellulose Fibers ($ Millions) 2011 Q3 2011 Q4 4th Quarter Notes Higher sales volumes Revenues $503 $523 Average selling prices for pulp declined Contribution to Pre-Tax Earnings $135 $134 throughout the 4th quarter No annual maintenance outages in third or four
Slide 13: Real Estate Segment
REAL ESTATE SEGMENT Chart 10 4th Quarter Notes Real Estate ($ Millions) 2011 Q3 2011 Q4 Seasonal increase in home closings Revenues $211 $276 Margins on homes closed improved due to mix 4th quarter includes earnings of $19 million Contribution to Pre-Tax Earnings $10 $41 from sale of land and
Slide 14: 2012 Q1 Outlook
2012 Q1 OUTLOOK Chart 11 Segment Comments Increased fee harvest volumes in the West, and slightly improved average selling prices due to a higher percentage of export logs sold to Japan Flat fee harvest volumes and prices in the South Timberlands Higher fuel costs across all geographies, and h
Slide 15: Appendix
APPENDIX 02/03/2012 • 15
Slide 16: Pro Forma Earnings Per Share
PRO FORMA EARNINGS PER SHARE Chart 12 On Sept. 1, 2010, Weyerhaeuser paid a previously announced special dividend consisting of approximately 324 million shares of common stock and $560 million in cash. After payment of the special dividend, Weyerhaeuser had approximately 536 million basic share
Slide 17: Earnings Summary
EARNINGS SUMMARY Chart 13 $ Millions except EPS 2010 2011 Contribution to Pre-Tax Earnings Before Special Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Items Timberlands $81 $70 $75 $56 $89 $112 $62 $70 Wood Products (66) (19) (102) (81) (36) (53) (43) (61) Cellulose Fibers 19 74 181 138 86 80 135 134 Real Estate 31 27 2
Slide 18: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 14 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diluted EPS before Special Items ($0.07) $0.20 $0.25 $0.10 $0.00 $0.06 $0.12 $0.14 Income Tax Adjustments and Credits (0.15) 3.25 0.33 0.15 Net Gain on Divestiture of Assets and Operations 0.12 0.03 0.06 0.18 (0.01) 0.06 Cl