PR Newswire | Apr 30, 2021 03:06AM EDT

04/30 02:05 CDT

Weyerhaeuser reports first quarter results- Achieved net earnings of $681 million, or $0.91 per diluted share- Highest quarterly Adjusted EBITDA on record at $1.1 billion- Increased Adjusted EBITDA by 68 percent compared with fourth quarter 2020 SEATTLE, April 30, 2021

SEATTLE, April 30, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $681 million, or 91 cents per diluted share, on net sales of $2.5 billion. This compares with net earnings of $150 million, or 20 cents per diluted share, on net sales of $1.7 billion for the same period last year and net earnings of $292 million for the fourth quarter of 2020. There were no special items in first quarter 2021. Net earnings before special items was $138 million for the same period last year and $361 million for the fourth quarter of 2020.

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

Adjusted EBITDA for the first quarter of 2021 was $1.1 billion compared with $413 million for the same period last year and $657 million for the fourth quarter of 2020.

"I am extremely pleased with our first quarter results, as our businesses delivered Weyerhaeuser's highest quarterly Adjusted EBITDA on record despite severe winter weather and supply chain disruptions," said Devin W. Stockfish, president and chief executive officer. "We also surpassed our previous record for Wood Products Adjusted EBITDA by more than 50 percent and announced a strategic acquisition to enhance our Alabama timberland holdings. As 2021 progresses, new residential construction activity is exhibiting remarkable momentum and repair and remodel demand remains very favorable. We remain committed to delivering operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2020 2021 2020

(millions, except per share data) Q4 Q1 Q1

Net sales $2,063 $2,506 $1,728

Net earnings $292 $681 $150

Net earnings per diluted share $0.39 $0.91 $0.20

Weighted average shares outstanding, diluted 749 750 747

Net earnings before special items^(1)(2) $361 $681 $138

Net earnings per diluted share before special items^(1) $0.48 $0.91 $0.18

Adjusted EBITDA^(1) $657 $1,101 $413

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.

(2) Special items for prior periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2020 2021

(millions) Q4 Q1 Change

Net sales $502 $513 $11

Net contribution to pretax earnings $286 $108 ($178)

Pretax benefit for special items ($182) $- $182

Net contribution to pretax earnings before special items $104 $108 $4

Adjusted EBITDA $167 $172 $5

Q1 2021 Performance -In the West, average export log sales realizations increased from the fourth quarter, and the company shifted volume to the export market to serve higher Japanese demand. Average domestic log sales realizations were slightly lower, as salvage operations resulted in a greater mix of smaller diameter logs. Log and haul costs were higher due to increased salvage activity, and forestry expenses were seasonally lower. In the South, average sales realizations for sawlogs and fiber logs improved from the fourth quarter, while fee harvest volumes were slightly lower due to severe winter weather. Forestry and road expenses decreased seasonally.

Q2 2021 Outlook - Weyerhaeuser expects second quarter earnings and Adjusted EBITDA will be comparable to the first quarter. In the West, the company anticipates significantly higher fee harvest volumes will be offset by seasonally higher forestry and road expenses. In the South, the company expects significantly higher fee harvest volumes and comparable average sales realizations, partially offset by seasonally higher forestry and road expenses. In the North, fee harvest volumes will decrease significantly due to spring break-up.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2020 2021

(millions) Q4 Q1 Change

Net sales $30 $106 $76

Net contribution to pretax earnings $14 $66 $52

Adjusted EBITDA $23 $96 $73

Q1 2021 Performance -Real estate sales increased compared with the fourth quarter due to a significantly higher number of acres sold. Average price per acre and average land basis decreased due to the mix of properties sold.

Q2 2021 Outlook -Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be moderately lower than first quarter 2021 due to the timing of real estate transactions. The company continues to expect full year 2021 Adjusted EBITDA for the segment will be approximately $255 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2020 2021

(millions) Q4 Q1 Change

Net sales $1,652 $2,021 $369

Net contribution to pretax earnings $481 $840 $359

Adjusted EBITDA $530 $889 $359

Q1 2021 Performance -Benchmark prices for lumber and oriented strand board reached new record levels in the first quarter, and average sales realizations for lumber and oriented strand board increased 42 percent and 22 percent, respectively, compared with fourth quarter averages. Average realizations for engineered wood products also improved as the company captured the benefit of previously announced price increases. These improvements were partially offset by higher raw material costs, primarily for Canadian logs and oriented strand board webstock. Operating rates in lumber and engineered wood products decreased slightly as a result of weather-related downtime in the U.S. South. Lumber sales volumes were modestly lower as customer takeaway and supply chains were temporarily disrupted following the severe winter weather.

Q2 2021 Outlook - Excluding the effect of changes in average sales realizations for lumber and oriented strand board, the company expects second quarter earnings and Adjusted EBITDA will be significantly higher than the first quarter. The company anticipates higher sales volumes for lumber and increased sales realizations for engineered wood products will be partially offset by higher raw material costs, primarily for oriented strand board webstock, and lower operating rates for oriented strand board due to planned maintenance outages. To date, second quarter benchmark pricing for lumber and oriented strand board is significantly higher than the first 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 April 30, 2021 to discuss first quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 30, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714047) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714047). Replays will be available for two weeks at 844-512-2921 (access code: 13714047) from within North America, and at 412-317-6671 (access code: 13714047) 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, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; operational excellence initiatives; log sales realizations; forestry and road expenses; fee harvest volumes; raw materials costs for our wood products business; operating rates for the manufacture of our oriented strand board products; and sales volumes for our lumber and sales realizations for our engineered wood products lines. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words such as "anticipate," "expect," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. 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; * the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction 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 and 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 the accuracy of our estimates of charges related to casualty losses; * changes in accounting principles; and * other risks and uncertainties identified in our 2020 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 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 March 31, 2021:

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

Adjusted EBITDAby Segment:

Net earnings $ 681

Interest expense,net of 79capitalizedinterest

Income taxes 189

Net contribution(charge) to $ 108 $ 66 $ 840 $ (65) $ 949earnings

Non-operatingpension and other - - - 8 8post-employmentbenefit costs

Interest income - - - (1) (1)and other

Operating income 108 66 840 (58) 956(loss)

Depreciation,depletion and 64 3 49 2 118amortization

Basis of real - 27 - - 27estate sold

Adjusted EBITDA $ 172 $ 96 $ 889 $ (56) $ 1,101

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

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

Adjusted EBITDA bySegment:

Net earnings $ 150

Interest expense,net of capitalized 85interest

Income taxes (3)

Net contribution(charge) to $ 105 $ 36 $ 134 $ (43) $ 232earnings

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

Interest income - - - (1) (1)and other

Operating income 105 36 134 (35) 240(loss)

Depreciation,depletion and 68 3 50 2 123amortization

Basis of real - 62 - - 62estate sold

Special itemsincluded in - - - (12) (12)operating income(loss)^(1)

Adjusted EBITDA $ 173 $ 101 $ 184 $ (45) $ 413

(1) Operating income (loss) includes a pretax special item consisting of a $12 million noncash legal benefit.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

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:

2020 2021 2020

(millions) Q4 Q1 Q1

Net earnings $292 $681 $150

Early extinguishment of debt charge 58 - -

Gain on sale of timberlands (182) - -

Legal benefit - - (12)

Pension settlement charge 193 - -

Net earnings before special items $361 $681 $138

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

2020 2021 2020

Q4 Q1 Q1

Net earnings per diluted share $0.39 $0.91 $0.20

Early extinguishment of debt charge 0.07 - -

Gain on sale of timberlands (0.24) - -

Legal benefit - - (0.02)

Pension settlement charge 0.26 - -

Net earnings per diluted share before special items $0.48 $0.91 $0.18

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

Exhibit 99.2

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

Q4 Q1

December 31, March 31, March 31,in millions 2020 2021 2020

Net sales $ 2,063 $ 2,506 $ 1,728

Costs of sales 1,392 1,430 1,382

Gross margin 671 1,076 346

Selling expenses 21 20 22

General and administrative expenses 93 90 74

Gain on sale of timberlands (182) - -

Other operating costs, net 22 10 10

Operating income 717 956 240

Non-operating pension and other (262) (8) (9)post-employment benefit costs

Interest income and other - 1 1

Interest expense, net of capitalized (144) (79) (85)interest

Earnings before income taxes 311 870 147

Income taxes (19) (189) 3

Net earnings $ 292 $ 681 $ 150

Per Share Information

Q4 Q1

December 31, March 31, March 31,

2020 2021 2020

Earnings per share, basic and diluted $ 0.39 $ 0.91 $ 0.20

Dividends paid per common share $ 0.17 $ 0.17 $ 0.34

Weighted average shares outstanding (inthousands):

Basic 747,294 748,718 746,534

Diluted 749,004 750,024 747,155

Common shares outstanding at end of 747,385 748,751 746,206period (in thousands)

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

Q4 Q1

December 31, March 31, March 31,in millions 2020 2021 2020

Net earnings $ 292 $ 681 $ 150

Non-operating pension and other 262 8 9post-employment benefit costs

Interest income and other - (1) (1)

Interest expense, net of capitalized 144 79 85interest

Income taxes 19 189 (3)

Operating income 717 956 240

Depreciation, depletion and amortization 117 118 123

Basis of real estate sold 5 27 62

Special items included in operating (182) - (12)income

Adjusted EBITDA^(1) $ 657 $ 1,101 $ 413

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

Q1.2021 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q4 Q1

December 31, March 31, March 31,in millions 2020 2021 2020

Net earnings $ 292 $ 681 $ 150

Early extinguishment of debt charge^(1) 58 - -

Gain on sale of timberlands (182) - -

Legal benefit - - (12)

Pension settlement charge 193 - -

Net earnings before special items^(2) $ 361 $ 681 $ 138

Q4 Q1

December 31, March 31, March 31,

2020 2021 2020

Net earnings per diluted share $ 0.39 $ 0.91 $ 0.20

Early extinguishment of debt charge^(1) 0.07 - -

Gain on sale of timberlands (0.24) - -

Legal benefit - - (0.02)

Pension settlement charge 0.26 - -

Net earnings per diluted share before $ 0.48 $ 0.91 $ 0.18special items^(2)

^(1) We recorded a pretax charge of $58 million ($58 million after-tax)related to the early extinguishment of debt in fourth quarter 2020. This chargewas included in Interest expense, net of capitalized interest in theConsolidated Statement of Operations.

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

Selected Total Company Items

Q4 Q1

December 31, March 31, March 31,in millions 2020 2021 2020

Pension and post-employment costs:

Pension and post-employment service $ 9 $ 11 $ 10costs

Non-operating pension and other 262 8 9post-employment benefit costs

Total company pension and $ 271 $ 19 $ 19post-employment costs

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

December March Marchin millions 31, 31, 31,

2020 2021 2020

ASSETS

Current assets:

Cash and cash equivalents $ 495 $ 1,016 $ 1,458

Receivables, net 450 589 390

Receivables for taxes 82 7 24

Inventories 443 505 480

Prepaid expenses and other current assets 139 141 141

Total current assets 1,609 2,258 2,493

Property and equipment, net 2,013 1,971 1,911

Construction in progress 73 91 153

Timber and timberlands at cost, less 11,827 11,776 11,847depletion

Minerals and mineral rights, less depletion 268 265 278

Deferred tax assets 120 106 147

Other assets 401 407 399

Total assets $ 16,311 $ 16,874 $ 17,228

LIABILITIES AND EQUITY

Current liabilities:

Current maturities of long-term debt $ 150 $ 150 $ 577

Borrowings on line of credit - - 550

Accounts payable 204 236 241

Accrued liabilities 596 549 448

Total current liabilities 950 935 1,816

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

Deferred tax liabilities 24 26 10

Deferred pension and other post-employment 911 893 669benefits

Other liabilities 370 367 352

Total liabilities 7,580 7,546 9,146

Total equity 8,731 9,328 8,082

Total liabilities and equity $ 16,311 $ 16,874 $ 17,228

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

Q4 Q1

December 31, March 31, March 31,in millions 2020 2021 2020

Cash flows from operations:

Net earnings $ 292 $ 681 $ 150

Noncash charges (credits) to earnings:

Depreciation, depletion and amortization 117 118 123

Basis of real estate sold 5 27 62

Deferred income taxes, net (76) 8 (82)

Pension and other post-employment 271 19 19benefits

Share-based compensation expense 8 7 7

Gain on sale of timberlands (182) - -

Change in:

Receivables, net 51 (139) (82)

Receivables and payables for taxes (38) 120 79

Inventories (27) (60) (72)

Prepaid expenses and other current (9) (2) (2)assets

Accounts payable and accrued liabilities (20) (60) (91)

Pension and post-employment benefit (9) (8) (10)contributions and payments

Other 61 (13) (15)

Net cash from operations $ 444 $ 698 $ 86

Cash flows from investing activities:

Capital expenditures for property and $ (67) $ (31) $ (47)equipment

Capital expenditures for timberlands (15) (22) (21)reforestation

Acquisition of timberlands (425) - -

Proceeds from note receivable held by - - 362variable interest entities

Proceeds from sale of timberlands 381 - 145

Other - - 2

Net cash from investing activities $ (126) $ (53) $ 441

Cash flows from financing activities:

Cash dividends on common shares $ (127) $ (127) $ (254)

Net proceeds from issuance of long-term - - 732debt

Payments on long-term debt (556) - -

Proceeds from borrowings on line of - - 550credit

Payments on line of credit - - (230)

Proceeds from exercise of stock options 24 17 6

Other (4) (14) (12)

Net cash from financing activities $ (663) $ (124) $ 792

Net change in cash and cash equivalents $ (345) $ 521 $ 1,319

Cash and cash equivalents at beginning 840 495 139of period

Cash and cash equivalents at end of $ 495 $ 1,016 $ 1,458period

Cash paid (received) during the periodfor:

Interest, net of amounts capitalized $ 87 $ 75 $ 108

Income taxes, net of refunds $ 130 $ 66 $ -

Timberlands Segment

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q4.2020 Q1.2021 Q1.2020

Sales to unaffiliated customers $ 381 $ 379 $ 381

Intersegment sales 121 134 122

Total net sales 502 513 503

Costs of sales 375 383 375

Gross margin 127 130 128

Selling expenses 1 - -

General and administrative expenses 23 23 24

Gain on sale of timberlands (182) - -

Other operating income, net (1) (1) (1)

Operating income and Net contribution to $ 286 $ 108 $ 105earnings

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

in millions Q4.2020 Q1.2021 Q1.2020

Operating income $ 286 $ 108 $ 105

Depreciation, depletion and amortization 63 64 68

Special items (182) - -

Adjusted EBITDA^(1) $ 167 $ 172 $ 173

^(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 Q4.2020 Q1.2021 Q1.2020

Gain on sale of timberlands $ 182 $ - $ -

Selected Segment Items

in millions Q4.2020 Q1.2021 Q1.2020

Total decrease (increase) in working capital^ $ (47) $ (13) $ (3)(2)

Cash spent for capital expenditures^(3) $ (29) $ (28) $ (30)

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

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

Segment Statistics^(4)

Q4.2020 Q1.2021 Q1.2020

Third Party Delivered logs:

Net Sales West $ 201 $ 201 $ 177

(millions) South 137 131 150

North 15 16 17

Total delivered logs 353 348 344

Stumpage and pay-as-cut 4 6 5 timber

Recreational and other 16 16 15 lease revenue

Other revenue 8 9 17

Total $ 381 $ 379 $ 381

Delivered Logs West $ 124.37 $ 130.69 $ 104.91

Third Party Sales South $ 33.69 $ 34.50 $ 34.27

Realizations (per North $ 58.96 $ 62.83 $ 60.51ton)

Delivered Logs West 1,619 1,539 1,684

Third Party Sales South 4,097 3,782 4,365

Volumes (tons, North 241 261 284thousands)

Fee Harvest West 2,085 2,101 2,310Volumes

(tons, thousands) South 5,509 5,376 6,130

North 325 337 386

^(^4) Western logs are primarily transacted in MBF but are converted to tonequivalents for external reporting purposes.

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q4.2020 Q1.2021 Q1.2020

Net sales $ 30 $ 106 $ 112

Costs of sales 9 34 70

Gross margin 21 72 42

General andadministrative 7 6 6expenses

Operating incomeand Net $ 14 $ 66 $ 36contribution toearnings

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

in millions Q4.2020 Q1.2021 Q1.2020

Operating income $ 14 $ 66 $ 36

Depreciation,depletion and 4 3 3amortization

Basis of real 5 27 62estate sold

Adjusted EBITDA^ $ 23 $ 96 $ 101(1)

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

Selected Segment Items

in millions Q4.2020 Q1.2021 Q1.2020

Cash spent forcapital $ - $ - $ -expenditures

Segment Statistics

Q4.2020 Q1.2021 Q1.2020

Net Sales Real $ 10 $ 84 $ 95 Estate

Energy and(millions) Natural 20 22 17 Resources

Total $ 30 $ 106 $ 112

Acres Sold Real 670 19,455 44,974 Estate

Price per Acre Real $ 6,316 $ 3,803 $ 1,992 Estate

Basis as a Percentof Real Estate 50 % 32 % 65 %Real Estate NetSales

Wood Products Segment

Weyerhaeuser Company

Q1.2021 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q4.2020 Q1.2021 Q1.2020

Net sales $ 1,652 $ 2,021 $ 1,235

Costs of sales 1,109 1,124 1,040

Gross margin 543 897 195

Selling expenses 20 19 21

General andadministrative 34 35 36expenses

Other operating 8 3 4costs, net

Operating income andNet contribution to $ 481 $ 840 $ 134earnings

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

in millions Q4.2020 Q1.2021 Q1.2020

Operating income $ 481 $ 840 $ 134

Depreciation,depletion and 49 49 50amortization

Adjusted EBITDA^(1) $ 530 $ 889 $ 184

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

Selected Segment Items

in millions Q4.2020 Q1.2021 Q1.2020

Total decrease(increase) in working $ 16 $ (212) $ (186)capital^(2)

Cash spent for $ (52) $ (25) $ (38)capital expenditures

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

Segment Statistics

in millions, except for third Q4.2020 Q1.2021 Q1.2020party sales realizations

Structural Lumber Third party $ 737 $ 990 $ 508 net sales

Third party(volumes presented sales $ 609 $ 864 $ 416 realizations

Third partyin board feet) sales 1,210 1,145 1,222 volumes^(3)

Production 1,179 1,211 1,209 volumes

Oriented Strand Third party $ 354 $ 438 $ 190 net sales

Third partyBoard sales $ 503 $ 614 $ 246 realizations

Third party(volumes presented sales 703 714 770 volumes^(3)

in square feet 3/8") Production 735 742 777 volumes

Engineered Solid Third party $ 132 $ 142 $ 127 net sales

Third partySection sales $ 2,221 $ 2,285 $ 2,149 realizations

Third party(volumes presented sales 6.0 6.2 5.9 volumes^(3)

in cubic feet) Production 6.2 6.0 6.1 volumes

Engineered Third party $ 85 $ 83 $ 78 net sales

Third partyI-joists sales $ 1,695 $ 1,773 $ 1,667 realizations

Third party(volumes presented sales 50 47 47 volumes^(3)

in lineal feet) Production 47 44 47 volumes

Softwood Plywood Third party $ 43 $ 56 $ 39 net sales

Third party(volumes presented sales $ 433 $ 594 $ 348 realizations

Third partyin square feet 3/8") sales 99 94 113 volumes^(3)

Production 80 80 97 volumes

Medium Density Third party $ 47 $ 48 $ 44 net sales

Third partyFiberboard sales $ 867 $ 842 $ 841 realizations

Third party(volumes presented sales 54 57 52 volumes^(3)

in square feet 3/4") Production 52 56 56 volumes

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

Unallocated Items

Weyerhaeuser Company

Q1.2021 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 Q4.2020 Q1.2021 Q1.2020

Unallocated corporate function and variable $ (31) $ (25) $ (19)compensation expense

Liability classified share-based compensation (3) (1) 10

Foreign exchange loss (4) (2) (8)

Elimination of intersegment profit in inventory (13) (17) (13)and LIFO

Other, net (13) (13) (5)

Operating loss (64) (58) (35)

Non-operating pension and other post-employment (262) (8) (9)benefit costs

Interest income and other - 1 1

Net charge to earnings $ (326) $ (65) $ (43)

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

in millions Q4.2020 Q1.2021 Q1.2020

Operating loss $ (64) $ (58) $ (35)

Depreciation, depletion and amortization 1 2 2

Special items - - (12)

Adjusted EBITDA^(1) $ (63) $ (56) $ (45)

^(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 Q4.2020 Q1.2021 Q1.2020

Legal benefit $ - $ - $ 12

Special items included in operating loss - - 12

Pension settlement charge (253) - -

Special items included in net charge to earnings $ (253) $ - $ 12

Unallocated Selected Items

in millions Q4.2020 Q1.2021 Q1.2020

Cash spent for capital expenditures $ (1) $ - $ -

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SOURCE Weyerhaeuser Company