PR Newswire | Jan 29, 2021 03:05AM EST

01/29 02:05 CST

Weyerhaeuser Reports Fourth Quarter, Full Year Results- Generated full year net earnings of $797 million, or $1.07 per diluted share- Increased full year Adjusted EBITDA by 72 percent to $2.2 billion- Highest full year Wood Products Operating Income and Adjusted EBITDA on record SEATTLE, Jan. 29, 2021

SEATTLE, Jan. 29, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $292 million, or 39 cents per diluted share, on net sales of $2.1 billion. This compares with a net loss of $14 million, or two cents per diluted share, on net sales of $1.5 billion for the same period last year and net earnings of $283 million for the third quarter of 2020.

View our earnings release and financial statements in a printer-friendly PDF.

Excluding net after-tax charges of $69 million for special items, the company reported fourth quarter net earnings of $361 million, or 48 cents per diluted share. This compares with net earnings before special items of $23 million for the same period last year and $386 million for the third quarter of 2020.

Adjusted EBITDA for the fourth quarter of 2020 was $657 million compared with $260 million for the same period last year and $745 million for the third quarter of 2020.

For the full year 2020, Weyerhaeuser reported net earnings of $797 million, or $1.07 per diluted share, on net sales of $7.5 billion. This compares with a net loss of $76 million on net sales of $6.6 billion for the full year 2019.

Full year 2020 includes net after-tax charges of $165 million for special items. Excluding these items, the company reported net earnings of $962 million, or $1.29 per diluted share. This compares with net earnings before special items of $285 million for the full year 2019.

Adjusted EBITDA for full year 2020 was $2.2 billion compared with $1.3 billion for full year 2019.

"In 2020 each of our businesses delivered remarkable results in the face of unprecedented operating and market challenges," said Devin W. Stockfish, president and chief executive officer. "Our teams delivered the highest Wood Products Adjusted EBITDA on record, achieved record low cost performance in lumber, and captured approximately $100 million of operational excellence improvements across our businesses, all while demonstrating an unwavering commitment to safety. In addition, we reduced gross debt by more than $900 million, implemented a new dividend framework, strategically upgraded our Oregon timberland holdings and launched a new sustainability strategy. As we embark on 2021, we are encouraged by the macroeconomic tailwinds that continue to bolster strong U.S. housing and repair and remodel markets, and we remain focused on creating value for shareholders through our unrivaled portfolio of assets, industry-leading operating performance and disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2020 2020 2019 2020 2019

(millions, except per share data) Q3 Q4 Q4 Full Full Year Year

Net sales $2,110 $2,063 $1,548 $7,532 $6,554

Net earnings (loss) $283 $292 ($14) $797 ($76)

Net earnings (loss) per diluted share $0.38 $0.39 ($0.02) $1.07 ($0.10)

Weighted average shares outstanding, 748 749 746 748 746diluted

Net earnings before special items^(1) $386 $361 $23 $962 $285(2)

Net earnings per diluted share before $0.52 $0.48 $0.03 $1.29 $0.39special items^(1)

Adjusted EBITDA^(1) $745 $657 $260 $2,201 $1,276

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted(1) EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.

Fourth quarter 2020 after-tax special items include a $193 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract, a $182 million gain(2) related to the previously announced sale of certain southern Oregon timberlands and a $58 million charge related to the early extinguishment of debt. Special items for other periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q3 Q4 Change

Net sales $452 $502 $50

Net contribution (charge) to pretax earnings ($11) $286 $297

Pretax charge (benefit) for special items $80 ($182) ($262)

Net contribution to pretax earnings before special items $69 $104 $35

Adjusted EBITDA $130 $167 $37

Q4 2020 Performance -In the West, average sales realizations for domestic and Japan export logs increased from the third quarter, and export log sales volumes were significantly higher. Fee harvest volumes increased 9 percent as harvest operations fully resumed following third quarter wildfire activity. In the South, average log sales realizations were comparable to the third quarter, as higher average sawlog realizations were largely offset by lower realizations for fiber logs. Unit logging and hauling costs decreased, and log sales volumes were slightly lower.

Fourth quarter special items include a $182 million gain on the previously announced sale of certain southern Oregon timberlands, which was completed in November.

Q1 2021 Outlook - Weyerhaeuser expects first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter. In the West, the company anticipates higher export log sales volumes, slightly lower average domestic log sales realizations, slightly higher unit logging and hauling costs, and seasonally lower road spending. In the South, the company expects higher fee harvest volumes and comparable average log sales realizations.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q3 Q4 Change

Net sales $69 $30 ($39)

Net contribution to pretax earnings $17 $14 ($3)

Adjusted EBITDA $60 $23 ($37)

Q4 2020 Performance -Earnings and Adjusted EBITDA decreased due to fewer real estate sales. Average land basis was significantly lower due to the mix of properties sold. The segment reported full year Adjusted EBITDA of $241 million.

Q1 2021 Outlook -Weyerhaeuser anticipates first quarter earnings will be slightly higher than first quarter 2020, and Adjusted EBITDA will be modestly lower than first quarter 2020 due to the timing and mix of real estate transactions. The company expects full year 2021 Adjusted EBITDA for the segment will be approximately $255 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q3 Q4 Change

Net sales $1,696 $1,652 ($44)

Net contribution to pretax earnings $566 $481 ($85)

Adjusted EBITDA $615 $530 ($85)

Q4 2020 Performance -Sales volumes declined slightly across most product lines from the third quarter. Raw material costs increased significantly, primarily for Western and Canadian logs and oriented strand board webstock. Per unit manufacturing costs increased for oriented strand board due to planned maintenance outages.

Average sales realizations for oriented strand board improved 27 percent compared with the third quarter, as benchmark pricing remained near record levels. This was largely offset by a 10 percent decrease in average lumber sales realizations.

Q1 2021 Outlook - Excluding the effect of changes in average sales realizations for lumber and oriented strand board, the company expects first quarter earnings and Adjusted EBITDA will be significantly higher than the fourth quarter. The company expects improved manufacturing costs across product lines and slightly higher sales volumes, primarily for lumber and engineered wood products. To date, first quarter benchmark pricing for lumber and oriented strand board is significantly higher than the fourth quarter average.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on January 29, 2021 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January 29, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714046) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714046). Replays will be available for two weeks at 844-512-2921 (access code: 13714046) from within North America, and at 412-317-6671 (access code: 13714046) from outside North America.

FORWARD-LOOKING STATEMENTS

This news release 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 the Securities Exchange Act of 1934, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log export sales volumes and domestic log sales realizations; forestry road expense and logging costs; fee harvest volumes; manufacturing costs for our wood products business and sales volumes for our lumber and engineered wood products lines. Forward-looking statements are generally identified by words such as "believe," "expect," "anticipate," "estimate," "future," "planned," "may," "will," "maintain," and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

* the effect of general economic conditions, including employment rates, interest rate levels, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar; * the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects; * market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions; * changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen; * restrictions on international trade and tariffs imposed on imports or exports; * the availability and cost of shipping and transportation; * economic activity in Asia, especially Japan and China; * performance of our manufacturing operations, including maintenance and capital requirements; * potential disruptions in our manufacturing operations; * the level of competition from domestic and foreign producers; * our operational excellence initiatives; * the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing, required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements; * raw material availability and prices; * the effect of weather; * changes in global or regional climate conditions and governmental response to such changes; * the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; * energy prices; * transportation and labor 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 employee retirements and changes in the market price of our common stock on charges for share-based compensation; * the accuracy of our estimates of costs and expenses related to contingent liabilities and charges related to casualty losses; * changes in accounting principles; and * other risks and uncertainties identified in our 2019 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA for the year ended December 31, 2020:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDAby Segment:

Net earnings $ 797

Interest expense,net of 443capitalizedinterest^(1)

Income taxes 185

Net contribution(charge) to $ 455 $ 86 $ 1,340 $ (456) $ 1,425earnings

Non-operatingpension and other - - - 290 290post-employmentbenefit costs^(2)

Interest income - - - (5) (5)and other

Operating income 455 86 1,340 (171) 1,710(loss)

Depreciation,depletion and 257 14 195 6 472amortization

Basis of real - 141 - - 141estate sold

Special itemsincluded in (102) - (8) (12) (122)operating income(loss)^(3)(4)(5)

Adjusted EBITDA $ 610 $ 241 $ 1,527 $ (177) $ 2,201

Interest expense, net of capitalized interest includes pretax special items(1) consisting of $92 million of charges related to the early extinguishment of debt.

Non-operating pension and other post-employment benefit costs includes a(2) pretax special item consisting of a $253 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

Operating income (loss) for Timberlands includes pretax special items(3) consisting of a $182 million gain on sale of certain southern Oregon timberlands and an $80 million timber casualty loss.

(4) Operating income (loss) for Wood Products includes a pretax special item consisting of an $8 million product remediation insurance recovery.

(5) Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $12 million noncash legal benefit.

The table below reconciles Adjusted EBITDA for the year ended December 31, 2019:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDAby Segment:

Net loss $ (76)

Interest expense,net of 378capitalizedinterest^(1)

Income taxes (137)

Net contribution(charge) to $ 347 $ 144 $ 353 $ (679) $ 165earnings

Non-operatingpension and other - - - 516 516post-employmentbenefit costs^(2)

Interest income - - - (30) (30)and other

Operating income 347 144 353 (193) 651(loss)

Depreciation,depletion and 301 14 191 4 510amortization

Basis of real - 116 - - 116estate sold

Special itemsincluded in 32 - (68) 35 (1)operating income(loss)^(3)(4)(5)

Adjusted EBITDA $ 680 $ 274 $ 476 $ (154) $ 1,276

Interest expense, net of capitalized interest includes a pretax special(1) item consisting of a $12 million charge related to the early extinguishment of debt.

Non-operating pension and other post-employment benefit costs includes(2) pretax special items consisting of $455 million of noncash settlement charges related to transfers of pension plan assets and liabilities to an insurance company through the purchase of group annuity contracts.

Operating income (loss) for Timberlands includes pretax special items(3) consisting of an $80 million noncash impairment charge related to the sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.

(4) Operating income (loss) for Wood Products includes a pretax special item consisting of a $68 million product remediation insurance recovery.

(5) Operating income (loss) for Unallocated Items includes pretax special items consisting of $35 million of legal charges.

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2020:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDAby Segment:

Net earnings $ 292

Interest expense,net of 144capitalizedinterest^(1)

Income taxes 19

Net contribution(charge) to $ 286 $ 14 $ 481 $ (326) $ 455earnings

Non-operatingpension and other - - - 262 262post-employmentbenefit costs^(2)

Interest income - - - - -and other

Operating income 286 14 481 (64) 717(loss)

Depreciation,depletion and 63 4 49 1 117amortization

Basis of real - 5 - - 5estate sold

Special itemsincluded in (182) - - - (182)operating income(loss)^(3)

Adjusted EBITDA $ 167 $ 23 $ 530 $ (63) $ 657

Interest expense, net of capitalized interest includes a pretax special(1) item consisting of a $58 million charge related to the early extinguishment of $500 million of 4.625 percent notes due September 2023.

Non-operating pension and other post-employment benefit costs includes a(2) pretax special item consisting of a $253 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

(3) Operating income (loss) includes a pretax special item consisting of a $182 million gain on sale of certain southern Oregon timberlands.

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2020:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDA bySegment:

Net earnings $ 283

Interest expense,net of capitalized 111interest^(1)

Income taxes 109

Net contribution(charge) to $ (11) $ 17 $ 566 $ (69) $ 503earnings

Non-operatingpension and other - - - 9 9post-employmentbenefit costs

Interest income and - - - (2) (2)other

Operating income (11) 17 566 (62) 510(loss)

Depreciation,depletion and 61 3 49 2 115amortization

Basis of real - 40 - - 40estate sold

Special itemsincluded in 80 - - - 80operating income(loss)^(2)

Adjusted EBITDA $ 130 $ 60 $ 615 $ (60) $ 745

Interest expense, net of capitalized interest includes a pretax special(1) item consisting of a $23 million charge related to the early extinguishment of $325 million of 3.25 percent notes due March 2023.

(2) Operating income (loss) includes a pretax special item consisting of an $80 million timber casualty loss.

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2019:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDA bySegment:

Net loss $ (14)

Interest expense,net of capitalized 89interest

Income taxes 1

Net contribution(charge) to $ 53 $ 22 $ 60 $ (59) $ 76earnings

Non-operatingpension and other - - - 21 21post-employmentbenefit costs^(1)

Interest income - - - (8) (8)and other

Operating income 53 22 60 (46) 89(loss)

Depreciation,depletion and 73 4 50 1 128amortization

Basis of real - 11 - - 11estate sold

Special itemsincluded in 32 - - - 32operating income(loss)^(2)

Adjusted EBITDA $ 158 $ 37 $ 110 $ (45) $ 260

Non-operating pension and other post-employment benefit costs include a(1) pretax special item consisting of a $6 million noncash settlement charge related to the transfer of Canadian pension assets and liabilities through purchases of group annuity contracts.

Operating income (loss) includes pretax special items consisting of an $80(2) million noncash impairment charge related to the sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS (LOSS)

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings (loss):

2020 2020 2019 2020 2019

(millions) Q3 Q4 Q4 Full Full Year Year

Net earnings (loss) $283 $292 ($14) $797 ($76)

Early extinguishment of debt charges 23 58 - 92 9

Gain on sale of timberlands - (182) (48) (182) (48)

Legal charges (benefits) - - - (12) 26

Pension settlement charges - 193 5 193 345

Product remediation recoveries - - - (6) (51)

Restructuring, impairments and other - - 80 - 80charges

Timber casualty loss 80 - - 80 -

Net earnings before special items $386 $361 $23 $962 $285

The table below reconciles net earnings per diluted share before special items to net earnings (loss) per diluted share:

2020 2020 2019 2020 2019

Q3 Q4 Q4 Full Full Year Year

Net earnings (loss) per diluted share $0.38 $0.39 ($0.02) $1.07 ($0.10)

Early extinguishment of debt charges 0.03 0.07 - 0.12 0.01

Gain on sale of timberlands - (0.24) (0.07) (0.24) (0.07)

Legal charges (benefits) - - - (0.02) 0.04

Pension settlement charges - 0.26 0.01 0.26 0.47

Product remediation recoveries - - - (0.01) (0.07)

Restructuring, impairments and other - - 0.11 - 0.11charges

Timber casualty loss 0.11 - - 0.11 -

Net earnings per diluted share before $0.52 $0.48 $0.03 $1.29 $0.39special items

Exhibit 99.2

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept Dec 31, Dec 31, Dec 31, Dec 31,in millions 30, 2020 2020 2020 2019 2020 2019 2020

Net sales $ 1,728 $ 1,631 $ 2,110 $ 2,063 $ 1,548 $ 7,532 $ 6,554

Costs of sales 1,382 1,283 1,390 1,392 1,301 5,447 5,412

Gross margin 346 348 720 671 247 2,085 1,142

Selling 22 18 22 21 22 83 84expenses

General andadministrative 74 84 96 93 94 347 348expenses

Gain on sale of - - - (182) (48) (182) (48)timberlands

Charges forintegration andrestructuring, 1 - - - 80 1 80closures andassetimpairments

Productremediation - (8) - - - (8) (68)recoveries

Other operating 9 11 92 22 10 134 95costs, net

Operating 240 243 510 717 89 1,710 651income

Non-operatingpension andother (9) (10) (9) (262) (21) (290) (516)post-employmentbenefit costs

Interest income 1 2 2 - 8 5 30and other

Interestexpense, net of (85) (103) (111) (144) (89) (443) (378)capitalizedinterest

Earnings (loss)before income 147 132 392 311 (13) 982 (213)taxes

Income taxes 3 (60) (109) (19) (1) (185) 137

Net earnings $ 150 $ 72 $ 283 $ 292 $ (14) $ 797 $ (76)(loss)

Per Share Information

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept 30, Dec 31, Dec 31, Dec 31, Dec 31,

2020 2020 2020 2020 2019 2020 2019

Earnings(loss) pershare, $ 0.20 $ 0.10 $ 0.38 $ 0.39 $ (0.02) $ 1.07 $ (0.10)basic anddiluted

Dividendspaid per $ 0.34 $ - $ - $ 0.17 $ 0.34 $ 0.51 $ 1.36commonshare

Weightedaveragesharesoutstanding(inthousands):

Basic 746,534 746,896 746,996 747,294 745,886 746,931 745,897

Diluted 747,155 746,984 748,450 749,004 745,886 747,899 745,897

Commonsharesoutstanding 746,206 746,251 746,398 747,385 745,300 747,385 745,300at end ofperiod (inthousands)

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization (Adjusted EBITDA)

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept Dec 31, Dec 31, Dec 31, Dec 31,in millions 30, 2020 2020 2020 2019 2020 2019 2020

Net earnings (loss) $ 150 $ 72 $ 283 $ 292 $ (14) $ 797 $ (76)

Non-operating pensionand other 9 10 9 262 21 290 516post-employmentbenefit costs

Interest income and (1) (2) (2) - (8) (5) (30)other

Interest expense, netof capitalized 85 103 111 144 89 443 378interest

Income taxes (3) 60 109 19 1 185 (137)

Operating income 240 243 510 717 89 1,710 651

Depreciation,depletion and 123 117 115 117 128 472 510amortization

Basis of real estate 62 34 40 5 11 141 116sold

Special itemsincluded in operating (12) (8) 80 (182) 32 (122) (1)income

Adjusted EBITDA^(1) $ 413 $ 386 $ 745 $ 657 $ 260 $ 2,201 $ 1,276

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(1) estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

Total Company Statistics

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept Dec 31, Dec 31, Dec 31, Dec 31,in millions 30, 2020 2020 2020 2019 2020 2019 2020

Net earnings $ 150 $ 72 $ 283 $ 292 $ (14) $ 797 $ (76)(loss)

Earlyextinguishment of - 11 23 58 - 92 9debt charges^(1)

Gain on sale of - - - (182) (48) (182) (48)timberlands

Legal charges (12) - - - - (12) 26(benefits)

Pensionsettlement - - - 193 5 193 345charges

Productremediation - (6) - - - (6) (51)recoveries

Restructuring,impairments and - - - - 80 - 80other charges

Timber casualty - - 80 - - 80 -loss

Net earningsbefore special $ 138 $ 77 $ 386 $ 361 $ 23 $ 962 $ 285items^(2)

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept Dec 31, Dec 31, Dec 31, Dec 31, 30, 2020 2020 2020 2019 2020 2019 2020

Net earnings(loss) per $ 0.20 $ 0.10 $ 0.38 $ 0.39 $ (0.02) $ 1.07 $ (0.10)diluted share

Earlyextinguishment - 0.02 0.03 0.07 - 0.12 0.01of debtcharges^(1)

Gain on sale - - - (0.24) (0.07) (0.24) (0.07)of timberlands

Legal charges (0.02) - - - - (0.02) 0.04(benefits)

Pensionsettlement - - - 0.26 0.01 0.26 0.47charges

Productremediation - (0.01) - - - (0.01) (0.07)recoveries

Restructuring,impairments - - - - 0.11 - 0.11and othercharges

Timber - - 0.11 - - 0.11 -casualty loss

Net earningsper dilutedshare before $ 0.18 $ 0.11 $ 0.52 $ 0.48 $ 0.03 $ 1.29 $ 0.39special items^(2)

We recorded pretax charges of $12 million ($9 million after-tax), $11 million ($11 million after-tax), $23 million ($23 million after-tax) and^ $58 million ($58 million after-tax) related to the early extinguishment of(1) debt in first quarter 2019, second quarter 2020, third quarter 2020 and fourth quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

Net earnings before special items is a non-GAAP measure that management^ believes provides helpful context in understanding the company's earnings(2) performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

Selected Total Company Items

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept 30, Dec 31, Dec 31, Dec 31, Dec 31,in millions 2020 2020 2020 2020 2019 2020 2019

Pension andpost-employmentcosts:

Pension andpost-employment $ 10 $ 8 $ 9 $ 9 $ 8 $ 36 $ 32service costs

Non-operatingpension andother 9 10 9 262 21 290 516post-employmentbenefit costs

Total companypension and $ 19 $ 18 $ 18 $ 271 $ 29 $ 326 $ 548post-employmentcosts

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

March June 30, September 30, December 31, December 31,in millions 31, 2020 2020 2020 2019 2020

ASSETS

Current assets:

Cash and cash $ 1,458 $ 643 $ 787 $ 495 $ 139equivalents

Receivables, net 390 420 500 450 309

Receivables for 24 48 48 82 98taxes

Inventories 480 409 411 443 416

Assets held for - - 199 - 140sale

Prepaid expensesand other current 141 131 101 139 147assets

Currentrestrictedfinancial - - - - 362investments heldby variableinterest entities

Total current 2,493 1,651 2,046 1,609 1,611assets

Property and 1,911 1,958 1,945 2,013 1,969equipment, net

Construction in 153 110 119 73 130progress

Timber andtimberlands at 11,847 11,780 11,465 11,827 11,929cost, lessdepletion

Minerals andmineral rights, 278 275 271 268 281less depletion

Deferred tax 147 65 44 120 72assets

Other assets 399 415 466 401 414

Total assets $ 17,228 $ 16,254 $ 16,356 $ 16,311 $ 16,406

LIABILITIES ANDEQUITY

Currentliabilities:

Currentmaturities of $ 577 $ - $ - $ 150 $ -long-term debt

Borrowings on 550 - - - 230line of credit

Accounts payable 241 199 215 204 246

Accrued 448 525 617 596 530liabilities

Total current 1,816 724 832 950 1,006liabilities

Long-term debt, 6,299 6,299 5,974 5,325 6,147net

Deferred tax 10 18 27 24 6liabilities

Deferred pensionand other 669 652 638 911 693post-employmentbenefits

Other liabilities 352 359 358 370 377

Total liabilities 9,146 8,052 7,829 7,580 8,229

Total equity 8,082 8,202 8,527 8,731 8,177

Total liabilities $ 17,228 $ 16,254 $ 16,356 $ 16,311 $ 16,406and equity

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

Q1 Q2 Q3 Q4 Year-to-Date

Mar 31, June 30, Sept Dec 31, Dec 31, Dec 31, Dec 31,in millions 30, 2020 2020 2020 2019 2020 2019 2020

Cash flows fromoperations:

Net earnings $ 150 $ 72 $ 283 $ 292 $ (14) $ 797 $ (76)(loss)

Noncash charges(credits) toearnings(loss):

Depreciation,depletion and 123 117 115 117 128 472 510amortization

Basis of real 62 34 40 5 11 141 116estate sold

Deferred income (82) 80 22 (76) (5) (56) (169)taxes, net

Pension andother 19 18 18 271 29 326 548post-employmentbenefits

Share-basedcompensation 7 8 7 8 7 30 30expense

Timber casualty - - 80 - - 80 -loss

Charges forimpairment of - - - - 80 - 80assets

Net gains onsale of - - - (182) (48) (182) (48)timberlands

Change in:

Receivables, (82) (30) (80) 51 60 (141) 13net

Receivables andpayables for 79 (18) 42 (38) 51 65 33taxes

Inventories (72) 74 - (27) (21) (25) (23)

Prepaidexpenses and (2) 7 - (9) 1 (4) 6other currentassets

Accountspayable and (91) 30 64 (20) 50 (17) 37accruedliabilities

Pension andpost-employmentbenefit (10) (6) (5) (9) (9) (30) (45)contributionsand payments

Other (15) 5 22 61 (28) 73 (46)

Net cash from $ 86 $ 391 $ 608 $ 444 $ 292 $ 1,529 $ 966operations

Cash flows frominvestingactivities:

Capitalexpenditures $ (47) $ (55) $ (56) $ (67) $ (128) $ (225) $ (327)for propertyand equipment

Capitalexpenditures (21) (11) (9) (15) (15) (56) (57)for timberlandsreforestation

Acquisition of - - - (425) - (425) -timberlands

Proceeds fromnote receivableheld by 362 - - - - 362 253variableinterestentities

Proceeds fromsale of 145 - - 381 297 526 297timberlands

Other 2 1 - - 1 3 21

Net cash frominvesting $ 441 $ (65) $ (65) $ (126) $ 155 $ 185 $ 187activities

Cash flows fromfinancingactivities:

Cash dividendson common $ (254) $ - $ - $ (127) $ (253) $ (381) $ (1,013)shares

Net proceedsfrom issuance 732 - - - - 732 739of long-termdebt

Payments on - (588) (348) (556) - (1,492) (512)long-term debt

Proceeds fromborrowings on 550 - - - 220 550 1,095line of credit

Payments on (230) (550) - - (430) (780) (1,290)line of credit

Payments ondebt held byvariable - - - - - - (302)interestentities

Proceeds fromexercise of 6 - 3 24 5 33 13stock options

Repurchases of - - - - - - (60)common shares

Other (12) (3) (1) (4) (3) (20) (18)

Net cash fromfinancing $ 792 $ (1,141) $ (346) $ (663) $ (461) $ (1,358) $ (1,348)activities

Net change incash and cash $ 1,319 $ (815) $ 197 $ (345) $ (14) $ 356 $ (195)equivalents

Cash and cashequivalents at 139 1,458 643 840 153 139 334beginning ofperiod

Cash and cashequivalents at $ 1,458 $ 643 $ 840 $ 495 $ 139 $ 495 $ 139end of period

Cash paid(received)during theperiod for:

Interest, netof amounts $ 108 $ 70 $ 100 $ 87 $ 60 $ 365 $ 370capitalized

Income taxes, $ - $ 1 $ 45 $ 130 $ (48) $ 176 $ (2)net of refunds

Timberlands Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Sales tounaffiliated $ 381 $ 359 $ 345 $ 381 $ 388 $ 1,466 $ 1,618customers

Intersegment 122 121 107 121 122 471 503sales

Total net sales 503 480 452 502 510 1,937 2,121

Costs of sales 375 383 358 375 402 1,491 1,649

Gross margin 128 97 94 127 108 446 472

Selling expenses - 1 - 1 - 2 1

General andadministrative 24 22 24 23 23 93 94expenses

Gain on sale of - - - (182) (48) (182) (48)timberlands

Charges forintegration andrestructuring, - - - - 80 - 80closures andassetimpairments

Other operatingcosts (income), (1) (1) 81 (1) - 78 (2)net

Operating income(loss) and Netcontribution $ 105 $ 75 $ (11) $ 286 $ 53 $ 455 $ 347(charge) toearnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Operating $ 105 $ 75 $ (11) $ 286 $ 53 $ 455 $ 347income (loss)

Depreciation,depletion and 68 65 61 63 73 257 301amortization

Special items - - 80 (182) 32 (102) 32

Adjusted $ 173 $ 140 $ 130 $ 167 $ 158 $ 610 $ 680EBITDA^(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution (Charge) to Earnings(Pretax)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Gain on sale $ - $ - $ - $ 182 $ 48 $ 182 $ 48of timberlands

Restructuring,impairments $ - $ - $ - $ - $ (80) $ - $ (80)and othercharges

Timber $ - $ - $ (80) $ - $ - $ (80) $ -casualty loss

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Totaldecrease(increase) $ (3) $ (2) $ 43 $ (47) $ (12) $ (9) $ 12in workingcapital^(2)

Cash spentfor capital $ (30) $ (21) $ (24) $ (29) $ (33) $ (104) $ (112)expenditures^(3)

^ Represents the change in prepaid assets, accounts receivable, accounts(2) payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

^ Does not include cash spent for the acquisition of timberlands.(3)

Segment Statistics^(4)

Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Third Party Delivered logs:

Net Sales West $ 177 $ 179 $ 163 $ 201 $ 169 $ 720 $ 740

(millions) South 150 145 141 137 157 573 640

North 17 7 13 15 22 52 92

Total delivered 344 331 317 353 348 1,345 1,472 logs

Stumpage and pay-as-cut 5 5 5 4 13 19 42 timber

Recreational and other 15 16 16 16 16 63 61 lease revenue

Other 17 7 7 8 11 39 43 revenue

Total $ 381 $ 359 $ 345 $ 381 $ 388 $ 1,466 $ 1,618

Delivered West $ 104.91 $ 104.90 $ 109.01 $ 124.37 $ 102.12 $ 110.69 $ 103.18Logs

Third Party South $ 34.27 $ 33.68 $ 33.68 $ 33.69 $ 34.71 $ 33.83 $ 35.13Sales

Realizations North $ 60.51 $ 59.82 $ 57.19 $ 58.96 $ 56.95 $ 59.10 $ 58.80(per ton)

Delivered West 1,684 1,714 1,489 1,619 1,660 6,506 7,173Logs

Third Party South 4,365 4,307 4,185 4,097 4,538 16,954 18,232Sales

Volumes(tons, North 284 113 234 241 372 872 1,558thousands)

Fee Harvest West 2,310 2,236 1,911 2,085 2,214 8,542 9,237Volumes

(tons, South 6,130 5,914 5,596 5,509 6,617 23,149 26,278thousands)

North 386 194 321 325 477 1,226 2,042

^(^ Western logs are primarily transacted in MBF but are converted to ton4) equivalents for external reporting purposes.

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Net sales $ 112 $ 65 $ 69 $ 30 $ 46 $ 276 $ 314

Costs of sales 70 40 46 9 18 165 145

Gross margin 42 25 23 21 28 111 169

General andadministrative 6 6 6 7 7 25 27expenses

Otheroperating - - - - (1) - (2)income, net

Operatingincome and Net $ 36 $ 19 $ 17 $ 14 $ 22 $ 86 $ 144contributionto earnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Operating $ 36 $ 19 $ 17 $ 14 $ 22 $ 86 $ 144income

Depreciation,depletion and 3 4 3 4 4 14 14amortization

Basis of real 62 34 40 5 11 141 116estate sold

Adjusted $ 101 $ 57 $ 60 $ 23 $ 37 $ 241 $ 274EBITDA^(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Cash spentfor capital $ - $ - $ - $ - $ - $ - $ -expenditures

Segment Statistics

Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Net Sales Real $ 95 $ 48 $ 49 $ 10 $ 25 $ 202 $ 225 Estate

Energy(millions) and 17 17 20 20 21 74 89 Natural Resources

Total $ 112 $ 65 $ 69 $ 30 $ 46 $ 276 $ 314

Acres Sold Real 44,974 31,337 34,917 670 9,393 111,898 113,315 Estate

Price per Acre Real $ 1,992 $ 1,501 $ 1,381 $ 6,316 $ 2,308 $ 1,690 $ 1,848 Estate

Basis as a Percent of Real Estate 65 % 71 % 82 % 50 % 44 % 70 % 52 %Real Estate Net Sales

Wood Products Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Net sales $ 1,235 $ 1,207 $ 1,696 $ 1,652 $ 1,115 $ 5,790 $ 4,623

Costs of sales 1,040 997 1,075 1,109 994 4,221 4,098

Gross margin 195 210 621 543 121 1,569 525

Selling 21 18 18 20 21 77 80expenses

General andadministrative 36 33 33 34 35 136 139expenses

Productremediation - (8) - - - (8) (68)recoveries

Charges forintegrationandrestructuring, 1 - - - - 1 -closures andassetimpairments

Otheroperating 3 8 4 8 5 23 21costs, net

Operatingincome and Net $ 134 $ 159 $ 566 $ 481 $ 60 $ 1,340 $ 353contributionto earnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Operating $ 134 $ 159 $ 566 $ 481 $ 60 $ 1,340 $ 353income

Depreciation,depletion and 50 47 49 49 50 195 191amortization

Special items - (8) - - - (8) (68)

Adjusted $ 184 $ 198 $ 615 $ 530 $ 110 $ 1,527 $ 476EBITDA^(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution to Earnings (Pretax)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Productremediation $ - $ 8 $ - $ - $ - $ 8 $ 68recoveries

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Total decrease (increase) in working capital^(2) $ (186) $ 56 $ (68) $ 16 $ 49 $ (182) $ 1

Cash spent for capital expenditures $ (38) $ (45) $ (41) $ (52) $ (109) $ (176) $ (257)

^ Represents the change in prepaid assets, accounts receivable, accounts(2) payable, accrued liabilities and inventory for the Wood Products segment.

Segment Statistics

in millions, except for third Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019party sales realizations

Structural Lumber Third party net $ 508 $ 538 $ 819 $ 737 $ 466 $ 2,602 $ 1,892 sales

(volumes Third partypresented sales $ 416 $ 438 $ 674 $ 609 $ 389 $ 534 $ 389 realizations

Third partyin board feet) sales volumes^ 1,222 1,225 1,216 1,210 1,197 4,873 4,857 (3)

Production 1,209 1,108 1,170 1,179 1,178 4,666 4,705 volumes

Oriented Strand Third party net $ 190 $ 179 $ 290 $ 354 $ 157 $ 1,013 $ 632 sales

Third partyBoard sales $ 246 $ 240 $ 395 $ 503 $ 216 $ 343 $ 217 realizations

(volumes Third partypresented sales volumes^ 770 747 736 703 726 2,956 2,916 (3)

in square feet 3/ Production 777 742 759 735 757 3,013 2,9698") volumes

Engineered Solid Third party net $ 127 $ 111 $ 135 $ 132 $ 122 $ 505 $ 510 sales

Third partySection sales $ 2,149 $ 2,151 $ 2,128 $ 2,221 $ 2,166 $ 2,162 $ 2,196 realizations

(volumes Third partypresented sales volumes^ 5.9 5.2 6.3 6.0 5.6 23.4 23.2 (3)

in cubic feet) Production 6.1 5.3 5.4 6.2 5.4 23.0 22.6 volumes

Engineered Third party net $ 78 $ 70 $ 83 $ 85 $ 77 $ 316 $ 323 sales

Third partyI-joists sales $ 1,667 $ 1,645 $ 1,638 $ 1,695 $ 1,678 $ 1,662 $ 1,677 realizations

(volumes Third partypresented sales volumes^ 47 42 51 50 45 190 192 (3)

in lineal feet) Production 47 38 43 47 43 175 182 volumes

Softwood Plywood Third party net $ 39 $ 34 $ 55 $ 43 $ 31 $ 171 $ 161 sales

(volumes Third partypresented sales $ 348 $ 356 $ 507 $ 433 $ 337 $ 411 $ 363 realizations

in square feet 3/ Third party8") sales volumes^ 113 95 107 99 94 414 445 (3)

Production 97 76 94 80 84 347 386 volumes

Medium Density Third party net $ 44 $ 33 $ 47 $ 47 $ 39 $ 171 $ 166 sales

Third partyFiberboard sales $ 841 $ 825 $ 864 $ 867 $ 826 $ 851 $ 834 realizations

(volumes Third partypresented sales volumes^ 52 40 55 54 48 201 200 (3)

in square feet 3/ Production 56 35 57 52 49 200 2024") volumes

^ Volumes include sales of internally produced products and products(3) purchased for resale primarily through our distribution business.

Unallocated Items

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Unallocated items are gains or charges not related to, or allocated to, anindividual operating segment. They include all or a portion of items such asshare-based compensation, pension and post-employment costs, elimination ofintersegment profit in inventory and LIFO, foreign exchange transaction gainsand losses, interest income and other as well as legacy obligations.

Net Charge to Earnings

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Unallocatedcorporatefunction and $ (19) $ (23) $ (36) $ (31) $ (30) $ (109) $ (80)variablecompensationexpense

Liabilityclassified 10 (4) (5) (3) (2) (2) (7)share-basedcompensation

Foreignexchange gain (8) 3 2 (4) - (7) (2)(loss)

Elimination ofintersegmentprofit in (13) 18 (9) (13) (1) (17) (5)inventory andLIFO

Other, net (5) (4) (14) (13) (13) (36) (99)

Operating loss (35) (10) (62) (64) (46) (171) (193)

Non-operatingpension andother (9) (10) (9) (262) (21) (290) (516)post-employmentbenefit costs

Interest income 1 2 2 - 8 5 30and other

Net charge to $ (43) $ (18) $ (69) $ (326) $ (59) $ (456) $ (679)earnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Operating $ (35) $ (10) $ (62) $ (64) $ (46) $ (171) $ (193)loss

Depreciation,depletion and 2 1 2 1 1 6 4amortization

Special items (12) - - - - (12) 35

Adjusted $ (45) $ (9) $ (60) $ (63) $ (45) $ (177) $ (154)EBITDA^(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Unallocated Special Items Included in Net Charge to Earnings (Pretax)

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Legalbenefits $ 12 $ - $ - $ - $ - $ 12 $ (35)(charges)

Specialitemsincluded in 12 - - - - 12 (35)operatingloss

Pensionsettlement - - - (253) (6) (253) (455)charges

Specialitemsincluded in $ 12 $ - $ - $ (253) $ (6) $ (241) $ (490)net chargeto earnings

Unallocated Selected Items

in millions Q1.2020 Q2.2020 Q3.2020 Q4.2020 Q4.2019 YTD.2020 YTD.2019

Cash spentfor capital $ - $ - $ - $ (1) $ (1) $ (1) $ (15)expenditures

For more information contact:Analysts -Beth Baum,206-539-3907Media - Nancy Thompson, 919-861-0342

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SOURCE Weyerhaeuser Company