Investor Meetings | September 2016 Working together to be the world’s premier timber, land, and forest products company 1
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, with respect to future prospects, business strategies, revenues, earnings, cash flow, taxes, funds available for distribution, pricing, production, supply, dividend levels, share repurchases, business priorities, performance, cost reductions, operational excellence initiatives, costs and operational synergies, demand drivers and levels, margins, growth, housing markets, capital structure, credit ratings, capital expenditures, cash position, debt levels, and harvests and export markets. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements may be identified by our use of certain words in such statements, including without limitation words such as “anticipate,” “believe,” “continue,” “continued,” “could,” “forecast,” “estimate,” “outlook,” “goal,” “will,” “plan,” “expect,” “target,” “would” and similar words and terms and phrases using such terms and words. We may refer to assumptions, goals or targets, or we may reference expected performance through, or events to occur by or at, a future date, and such references may also constitute forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions concerning future events and are inherently subject to uncertainties and factors relating to our operations and business environment that are difficult to predict and often beyond the company’s control. Many factors could cause, among other things, one or more of our expectations to be unmet, one or more of our assumptions to be materially inaccurate or actual results to differ materially from those expressed or implied in these forward-looking statements. Such factors include, without limitation: our ability to successfully integrate the Plum Creek merger; our ability to successfully execute our performance plans, including cost reductions and other operational excellence initiatives; the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and the strength of the U.S. dollar; market demand for our products, including demand for our timberland properties with higher and better uses, which in turn is related to the strength of various U.S. business segments and U.S. and international economic conditions; domestic and foreign competition; raw material prices; energy prices; the effect of weather; the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; transportation availability and costs; federal tax policies; the effect of forestry, land use, environmental and other governmental regulations; legal proceedings; performance of pension fund investments and related derivatives; the effect of timing of retirements and changes in market price of our common stock on charges for share-based compensation; changes in accounting principles; and the other risk factors described in filings we make from time to time with the Securities and Exchange Commission, including without limitation risk factors described in our annual report on Form 10-K for the year ended December 31, 2015. There is no guarantee that any of the anticipated events or results articulated in this presentation will occur or, if they occur, what effect they will have on the company’s results of operations or financial condition. The forward-looking statements contained herein apply only as of the date of this presentation and we do not undertake any obligation to update these forward-looking statements. Nothing on our website is intended to be included or incorporated by reference into, or made a part of, this presentation. Also included in this presentation are certain non-GAAP financial measures, which management believes complement the financial information presented in accordance with U.S. generally accepted accounting principles. Management believes such non-GAAP measures may be useful to investors. Our non-GAAP financial measures may not be comparable to similarly named or captioned non-GAAP financial measures of other companies due to potential inconsistencies in how such measures are calculated. A reconciliation of each presented non-GAAP measure to its most directly comparable GAAP measure is provided in the appendices to this presentation. 2
PROGRESS UPDATE COMMITMENT PROGRESS • On track to meet or exceed $100MM “run rate” cost MERGER synergy target by end of year one SYNERGIES • Operational synergies rolled into OpX targets • Sale of liquid packaging board business closed Aug 31 CELLULOSE • Sale of pulp mills to close in Q4 FIBERS • Collective proceeds of approx. $2.5B, or $1.8B after-tax DIVESTITURE • Printing papers JV: working with prospective buyers • Completed $2B accelerated stock buyback in less than CAPITAL 6 months STRUCTURE • Investment grade credit rating 3
WEYERHAEUSER’S TRANSFORMATION TODAY 2012 WOOD PRODUCTS CELLULOSE FIBERS TIMBERLANDS WOOD CELLULOSE PRODUCTS WOOD TIMBERLANDS FIBERS PRODUCTS ASSETS TIMBERLANDS ASSETS $17.7 $10.4 BILLION* WOOD BILLION* WRECO PRODUCTS WRECO • Acquired Longview Timber 6 • Divested WRECO 13 MILLION MILLION ACRES ACRES • Merged with Plum Creek • Divesting Cellulose Fibers *Book value of assets by business segment. Excludes Unallocated items. Timberlands includes Real Estate and Energy & Natural Resources assets. “Today” excludes assets of discontinued operations. 4 Source: WY 2016 Q2 10-Q and 2012 10-K.
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WEYERHAEUSER’S INVESTMENT THESIS CAPITAL SHAREHOLDER PORTFOLIO PERFORMANCE ALLOCATION VALUE • Premier timber, • Operational • Return cash to land, and wood excellence shareholders Superior products • Most value from • Invest in our relative total assets every acre businesses shareholder • Maintain return appropriate capital structure FOCUSED ON DRIVING VALUE FOR SHAREHOLDERS 6
THREE BUSINESS SEGMENTS REAL ESTATE, TIMBERLANDS ENERGY & WOOD PRODUCTS NATURAL RESOURCES LARGEST PRIVATE LEADING WOOD PRODUCTS LEADER IN MAXIMIZING TIMBERLAND OWNER VALUE FROM EVERY ACRE MANUFACTURER IN THE U.S. • Premium recreation and • Lumber, OSB, • 13 million acres conservation lands Engineered Wood, Distribution • Unparalleled scale • Valuable surface and • Highly productive subsurface resources • Low-cost • Sustainably certified 7
UNMATCHED TIMBERLAND PORTFOLIO 13 MILLION ACRES Western Region Northern Region Southern Region Note: 13 million acres includes 323,000 acres owned in Uruguay (not shown). 8 Source: WY 2015 10-K, PCL 2015 10-K
REAL ESTATE: Maximize value of each of our 13 million acres HIGHER AND BETTER USE (HBU) ENERGY & NATURAL RESOURCES • Capture premium values above • Capture value of all surface and timberland value subsurface assets – – Recreation Oil and natural gas – – Conservation Construction materials and minerals – – Development Wind resources 9
REAL ESTATE: Delivering the most value from each acre Determine Timber Net Present Value for Each Acre Identify Opportunities to Capture Premium Value ( Asset Value Optimization — AVO) ASSESS PROPERTY ATTRIBUTES ASSESS ECONOMIC ATTRIBUTES distance to cities and amenities, population growth, income levels, access to roads, water, percent uplands home values, absorption rates BEST Net Present Value WINS HBU Conservation SNS Growing & Harvesting Timber 10 10
LEADING WOOD PRODUCTS PORTFOLIO • Continued improvement through operational excellence • Well-positioned to benefit from improving housing markets 19 LUMBER MILLS 4.8 billion board feet capacity 6 OSB MILLS 3.0 billion square feet capacity 6 ENGINEERED WOOD MILLS 43 million cubic feet solid section capacity* 4 VENEER / PLYWOOD FACILITIES 610 million square feet plywood capacity 1 MEDIUM DENSITY FIBERBOARD MILL 265 million square feet capacity 17 DISTRIBUTION FACILITIES (not shown) * Capacity if mills produce exclusively solid section product. Three engineered wood products facilities also produce engineered I-Joists to meet market demand. 11 2015 production of I-Joists was 185 million lineal feet.
WEYERHAEUSER’S INVESTMENT THESIS CAPITAL SHAREHOLDER PORTFOLIO PERFORMANCE ALLOCATION VALUE • Premier timber, • Operational • Return cash to land, and wood excellence shareholders Superior products • Most value from • Invest in our relative total assets every acre businesses shareholder • Maintain return appropriate capital structure FOCUSED ON DRIVING VALUE FOR SHAREHOLDERS 12
GAINS FROM OPERATIONAL EXCELLENCE 2014 2015 RESULTS RESULTS Timberlands $25 MM $39 MM $330 Lumber $25 MM $21 MM MILLION OSB $10 MM $24 MM $35 MM $34 MM ELP EBITDA* EBITDA* OpX CAPTURED $8 MM $35 MM Distribution EBITDA* EBITDA* THROUGH 2015 Cellulose Fibers $28 MM $47 MM $174 MM $157 MM 13 *Adjusted EBITDA. See appendix for definition.
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