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

07/30 02:05 CDT

Weyerhaeuser reports record second quarter results- Achieved net earnings of $1.0 billion, or $1.37 per diluted share- Highest quarterly Adjusted EBITDA on record at $1.6 billion- Generated record cash flow from operations of over $1.3 billion SEATTLE, July 30, 2021

SEATTLE, July 30, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $1.0 billion, or $1.37 per diluted share, on net sales of $3.1 billion. This compares with net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion for the same period last year and net earnings of $681 million for the first quarter of 2021. There were no special items in second quarter or first quarter 2021. Net earnings before special items was $77 million for the same period last year, or 11 cents per diluted share.

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

Adjusted EBITDA for the second quarter of 2021 was $1.6 billion compared with $386 million for the same period last year and $1.1 billion for the first quarter of 2021.

"In the second quarter, our teams again delivered the company's strongest quarterly results on record, surpassing last quarter's Adjusted EBITDA record by over 40 percent," said Devin W. Stockfish, president and chief executive officer. "Year-to-date, our Adjusted EBITDA is almost $2 billion higher than this time last year and exceeds our full year results for each of the last 14 years. We also generated record operating cash flow in the quarter and reduced long-term debt by another $225 million. Looking forward, our outlook remains favorable for continued strength in residential construction, our financial position is exceptionally strong, and with year-to-date Adjusted Funds Available for Distribution of almost $1.9 billion, we are excited for the opportunity to return significant cash to shareholders through the variable supplemental component of our new dividend framework."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2021 2021 2020

(millions, except per share data) Q1 Q2 Q2

Net sales $2,506 $3,144 $1,631

Net earnings $681 $1,028 $72

Net earnings per diluted share $0.91 $1.37 $0.10

Weighted average shares outstanding, diluted 750 752 747

Net earnings before special items^(1)(2) $681 $1,028 $77

Net earnings per diluted share before special items^(1) $0.91 $1.37 $0.11

Adjusted EBITDA^(1) $1,101 $1,573 $386

Net cash from operations $698 $1,308 $391

Adjusted FAD^(3) $645 $1,236 $317

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.

Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and(3) significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q1 Q2 Change

Net sales $513 $541 $28

Net contribution to pretax earnings $108 $113 $5

Adjusted EBITDA $172 $180 $8

Q2 2021 Performance -In the West, export sales realizations increased significantly from the first quarter and export sales volumes were modestly higher as the company shifted additional volume to the export market to serve higher demand, particularly from China. Fee harvest volumes were comparable as the company continued salvage operations. Domestic sales realizations were slightly lower as salvage activity continued to yield a greater mix of smaller diameter logs. In the South, fee harvest volumes increased significantly and sales realizations for sawlogs and fiber logs were slightly higher. In both regions, forestry and road expenses increased seasonally.

Q3 2021 Outlook - Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. In the West, the company anticipates slightly lower fee harvest volumes, seasonally higher forestry and road expenses, and higher per unit log and haul costs. The company expects moderately higher export sales realizations and slightly lower domestic sales realizations. In the South, the company expects significantly higher fee harvest volumes, slightly higher per unit log and haul costs, and seasonally higher forestry and road expenses. Sales realizations are expected to be slightly lower due to mix.

In July 2021, the company completed the previously announced sale of 145,000 acres of timberlands in the North Cascades region of Washington. Third quarter will include a gain of approximately $30 million on this transaction, which will be reported as a special item.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q1 Q2 Change

Net sales $106 $110 $4

Net contribution to pretax earnings $66 $63 ($3)

Adjusted EBITDA $96 $91 ($5)

Q2 2021 Performance -The number of real estate acres sold and the average price per acre decreased compared with the first quarter due to the timing of real estate sales and mix of properties sold. Energy & Natural Resources earnings and Adjusted EBITDA increased, primarily due to higher production of construction materials.

Q3 2021 Outlook -Weyerhaeuser anticipates third quarter earnings will be significantly higher than third quarter 2020 due to a lower average basis resulting from the mix of properties sold. The company expects Adjusted EBITDA will be comparable to third quarter 2020. The company now expects full year 2021 Adjusted EBITDA for the segment will be approximately $290 million, an increase from the $255 million previously expected.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q1 Q2 Change

Net sales $2,021 $2,629 $608

Net contribution to pretax earnings $840 $1,338 $498

Adjusted EBITDA $889 $1,386 $497

Q2 2021 Performance -Sales realizations for lumber and oriented strand board increased 25 percent and 48 percent, respectively, compared with first quarter averages. Sales volumes for lumber increased moderately. Oriented strand board production and sales volumes were modestly lower, and unit manufacturing costs increased, due to planned maintenance outages. Production and sales volumes for solid section and I-joist products increased and sales realizations improved as the company continued to benefit from previously announced price increases. Raw material costs for Wood Products increased, primarily for Canadian logs, oriented strand board webstock, resin and veneer.

Q3 2021 Outlook - Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly lower than the second quarter average. The company expects higher sales volumes and improved unit manufacturing costs for lumber and oriented strand board, as well as higher raw material costs.

UNALLOCATED

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q1 Q2 Change

Net charge to pretax earnings ($65) ($84) ($19)

Adjusted EBITDA ($56) ($84) ($28)

Q2 2021 Performance -Second quarter results include an increase in variable compensation expense due to a year-to-date adjustment for performance-based incentive compensation, as well as an increase in the noncash charge from elimination of intersegment profit in inventory and LIFO, primarily due to higher costing within our lumber and log inventories.

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 July 30, 2021 to discuss second quarter results.

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

To join the conference call from within North America, dial 877-407-0792 (access code: 13714048) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714048). Replays will be available for two weeks at 844-512-2921 (access code: 13714048) from within North America, and at 412-317-6671 (access code: 13714048) 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; log sales realizations; forestry and road expenses; log and haul costs; fee harvest volumes; expected gain on the sale of timberlands; 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 oriented strand board products 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.

For more information contact: Analysts - Beth Baum, beth.baum@weyerhaeuser.com , (206) 539-3907

Media - Nancy Thompson, nancy.thompson@weyerhaeuser.com, (919) 861-0342

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 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 June 30, 2021:

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

Adjusted EBITDAby Segment:

Net earnings $ 1,028

Interest expense,net of 78capitalizedinterest

Income taxes 324

Net contribution(charge) to $ 113 $ 63 $ 1,338 $ (84) $ 1,430earnings

Non-operatingpension and other - - - 1 1post-employmentbenefit costs

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

Operating income 113 63 1,338 (85) 1,429(loss)

Depreciation,depletion and 67 4 48 1 120amortization

Basis of real - 24 - - 24estate sold

Adjusted EBITDA $ 180 $ 91 $ 1,386 $ (84) $ 1,573

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

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

Adjusted EBITDA bySegment:

Net earnings $ 72

Interest expense,net of capitalized 103interest^(1)

Income taxes 60

Net contribution(charge) to $ 75 $ 19 $ 159 $ (18) $ 235earnings

Non-operatingpension and other - - - 10 10post-employmentbenefit costs

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

Operating income 75 19 159 (10) 243(loss)

Depreciation,depletion and 65 4 47 1 117amortization

Basis of real - 34 - - 34estate sold

Special itemsincluded in - - (8) - (8)operating income(loss)^(2)

Adjusted EBITDA $ 140 $ 57 $ 198 $ (9) $ 386

Interest expense, net of capitalized interest includes a pretax special(1) item consisting of an $11 million net charge related to the early extinguishment of debt.

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

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:

2021 2021 2020

(millions) Q1 Q2 Q2

Net earnings $681 $1,028 $72

Early extinguishment of debt charge - - 11

Product remediation recovery - - (6)

Net earnings before special items $681 $1,028 $77

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

2021 2021 2020

Q1 Q2 Q2

Net earnings per diluted share $0.91 $1.37 $0.10

Early extinguishment of debt charge - - 0.02

Product remediation recovery - - (0.01)

Net earnings per diluted share before special items $0.91 $1.37 $0.11

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:

2021 2021 2020 2021

(millions) Q1 Q2 Q2 Q2 YTD

Net cash from operations $698 $1,308 $391 $2,006

Capital expenditures (53) (72) (66) (125)

Adjustments to FAD^(1) - - (8) -

Adjusted FAD $645 $1,236 $317 $1,881

(1) Adjustments to FAD include an $8 million product remediation insurance recovery received in second quarter 2020.

Weyerhaeuser Company Exhibit 99.2

Q2.2021 Analyst PackagePreliminary results (unaudited)

Consolidated Statement of Operations

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2021 2021 2020 2021 2020

Net sales $ 2,506 $ 3,144 $ 1,631 $ 5,650 $ 3,359

Costs of sales 1,430 1,583 1,283 3,013 2,665

Gross margin 1,076 1,561 348 2,637 694

Selling expenses 20 24 18 44 40

General and 90 95 84 185 158administrative expenses

Other operating costs, 10 13 3 23 13net

Operating income 956 1,429 243 2,385 483

Non-operating pensionand other (8) (1) (10) (9) (19)post-employment benefitcosts

Interest income and 1 2 2 3 3other

Interest expense, net (79) (78) (103) (157) (188)of capitalized interest

Earnings before income 870 1,352 132 2,222 279taxes

Income taxes (189) (324) (60) (513) (57)

Net earnings $ 681 $ 1,028 $ 72 $ 1,709 $ 222

Per Share Information

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,

2021 2021 2020 2021 2020

Earnings per share, $ 0.91 $ 1.37 $ 0.10 $ 2.28 $ 0.30basic and diluted

Dividends paid per $ 0.17 $ 0.17 $ - $ 0.34 $ 0.34common share

Weighted averageshares outstanding(in thousands):

Basic 748,718 750,127 746,896 749,429 746,715

Diluted 750,024 751,508 746,984 750,773 747,070

Common sharesoutstanding at end 748,751 749,782 746,251 749,782 746,251of period (inthousands)

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

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2021 2021 2020 2021 2020

Net earnings $ 681 $ 1,028 $ 72 $ 1,709 $ 222

Non-operating pensionand other 8 1 10 9 19post-employment benefitcosts

Interest income and (1) (2) (2) (3) (3)other

Interest expense, net 79 78 103 157 188of capitalized interest

Income taxes 189 324 60 513 57

Operating income 956 1,429 243 2,385 483

Depreciation, depletion 118 120 117 238 240and amortization

Basis of real estate 27 24 34 51 96sold

Special items included - - (8) - (20)in operating income

Adjusted EBITDA^(1) $ 1,101 $ 1,573 $ 386 $ 2,674 $ 799

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.

Weyerhaeuser Company Total Company Statistics

Q2.2021 Analyst PackagePreliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2021 2021 2020 2021 2020

Net earnings $ 681 $ 1,028 $ 72 $ 1,709 $ 222

Early extinguishment of - - 11 - 11debt charge^(1)

Legal benefit - - - - (12)

Product remediation - - (6) - (6)recovery

Net earnings before $ 681 $ 1,028 $ 77 $ 1,709 $ 215special items^(2)

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,

2021 2021 2020 2021 2020

Net earnings per diluted $ 0.91 $ 1.37 $ 0.10 $ 2.28 $ 0.30share

Early extinguishment of - - 0.02 - 0.02debt charge^(1)

Legal benefit - - - - (0.02)

Product remediation - - (0.01) - (0.01)recovery

Net earnings per dilutedshare before special $ 0.91 $ 1.37 $ 0.11 $ 2.28 $ 0.29items^(2)

We recorded a pretax charge of $11 million ($11 million after-tax) related(1) to the early extinguishment of debt in second quarter 2020. This charge was 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 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2021 2021 2020 2021 2020

Pension andpost-employment costs:

Pension andpost-employment service $ 11 $ 10 $ 8 $ 21 $ 18costs

Non-operating pensionand other 8 1 10 9 19post-employment benefitcosts

Total company pensionand post-employment $ 19 $ 11 $ 18 $ 30 $ 37costs

Weyerhaeuser CompanyQ2.2021 Analyst PackagePreliminary results (unaudited)

Consolidated Balance Sheet

March June 30, Decemberin millions 31, 31, 2021 2021 2020

ASSETS

Current assets:

Cash and cash equivalents $ 1,016 $ 1,777 $ 495

Receivables, net 589 702 450

Receivables for taxes 7 7 82

Inventories 505 499 443

Assets held for sale - 229 -

Prepaid expenses and other current assets 141 141 139

Total current assets 2,258 3,355 1,609

Property and equipment, net 1,971 1,965 2,013

Construction in progress 91 102 73

Timber and timberlands at cost, less 11,776 11,643 11,827depletion

Minerals and mineral rights, less depletion 265 262 268

Deferred tax assets 106 71 120

Other assets 407 432 401

Total assets $ 16,874 $ 17,830 $ 16,311

LIABILITIES AND EQUITY

Current liabilities:

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

Accounts payable 236 253 204

Accrued liabilities 549 775 596

Total current liabilities 935 1,178 950

Long-term debt, net 5,325 5,100 5,325

Deferred tax liabilities 26 42 24

Deferred pension and other post-employment 893 747 911benefits

Other liabilities 367 363 370

Total liabilities 7,546 7,430 7,580

Total equity 9,328 10,400 8,731

Total liabilities and equity $ 16,874 $ 17,830 $ 16,311

Weyerhaeuser CompanyQ2.2021 Analyst PackagePreliminary results (unaudited)

Consolidated Statement of Cash Flows

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2021 2021 2020 2021 2020

Cash flows fromoperations:

Net earnings $ 681 $ 1,028 $ 72 $ 1,709 $ 222

Noncash charges(credits) to earnings:

Depreciation, depletion 118 120 117 238 240and amortization

Basis of real estate 27 24 34 51 96sold

Deferred income taxes, 8 11 80 19 (2)net

Pension and other 19 11 18 30 37post-employment benefits

Share-based compensation 7 8 8 15 15expense

Change in:

Receivables, net (139) (113) (30) (252) (112)

Receivables and payables 120 116 (18) 236 61for taxes

Inventories (60) 9 74 (51) 2

Prepaid expenses and (2) 1 7 (1) 5other current assets

Accounts payable and (60) 125 30 65 (61)accrued liabilities

Pension andpost-employment benefit (8) (25) (6) (33) (16)contributions andpayments

Other (13) (7) 5 (20) (10)

Net cash from operations $ 698 $ 1,308 $ 391 $ 2,006 $ 477

Cash flows frominvesting activities:

Capital expenditures for $ (31) $ (62) $ (55) $ (93) $ (102)property and equipment

Capital expenditures fortimberlands (22) (10) (11) (32) (32)reforestation

Acquisition of Alabama - (149) - (149) -timberlands

Proceeds from notereceivable held by - - - - 362variable interestentities

Proceeds from sale of - - - - 145Montana timberlands

Other - 1 1 1 3

Net cash from investing $ (53) $ (220) $ (65) $ (273) $ 376activities

Cash flows fromfinancing activities:

Cash dividends on common $ (127) $ (128) $ - $ (255) $ (254)shares

Net proceeds fromissuance of long-term - - - - 732debt

Payments on long-term - (225) (588) (225) (588)debt

Proceeds from borrowings - - - - 550on line of credit

Payments on line of - - (550) - (780)credit

Proceeds from exercise 17 28 - 45 6of stock options

Other (14) (2) (3) (16) (15)

Net cash from financing $ (124) $ (327) $ (1,141) $ (451) $ (349)activities

Net change in cash and $ 521 $ 761 $ (815) $ 1,282 $ 504cash equivalents

Cash and cashequivalents at beginning 495 1,016 1,458 495 139of period

Cash and cashequivalents at end of $ 1,016 $ 1,777 $ 643 $ 1,777 $ 643period

Cash paid (received)during the period for:

Interest, net of amounts $ 75 $ 79 $ 70 $ 154 $ 178capitalized

Income taxes, net of $ 66 $ 197 $ 1 $ 263 $ 1refunds

Weyerhaeuser Company Timberlands Segment

Q2.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Sales to unaffiliated $ 379 $ 405 $ 359 $ 784 $ 740customers

Intersegment sales 134 136 121 270 243

Total net sales 513 541 480 1,054 983

Costs of sales 383 407 383 790 758

Gross margin 130 134 97 264 225

Selling expenses - - 1 - 1

General and administrative 23 23 22 46 46expenses

Other operating income, net (1) (2) (1) (3) (2)

Operating income and Net $ 108 $ 113 $ 75 $ 221 $ 180contribution to earnings

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

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Operating income $ 108 $ 113 $ 75 $ 221 $ 180

Depreciation, depletion and 64 67 65 131 133amortization

Adjusted EBITDA^(1) $ 172 $ 180 $ 140 $ 352 $ 313

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

Selected Segment Items

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Total decrease (increase) $ (13) $ 2 $ (2) $ (11) $ (5)in working capital^(2)

Cash spent for capital $ (28) $ (21) $ (21) $ (49) $ (51)expenditures^(3)

^(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)

Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Third Party Delivered logs:

Net Sales West $ 201 $ 222 $ 179 $ 423 $ 356

(millions) South 131 145 145 276 295

North 16 9 7 25 24

Total delivered 348 376 331 724 675 logs

Stumpage and pay-as-cut 6 7 5 13 10 timber

Recreational and other 16 16 16 32 31 lease revenue

Other 9 6 7 15 24 revenue

Total $ 379 $ 405 $ 359 $ 784 $ 740

Delivered West $ 130.69 $ 137.80 $ 104.90 $ 134.32 $ 104.91Logs

Third Party South $ 34.50 $ 35.11 $ 33.68 $ 34.82 $ 33.97Sales

Realizations North $ 62.83 $ 74.88 $ 59.82 $ 66.51 $ 60.31(per ton)

Delivered West 1,539 1,608 1,714 3,147 3,398Logs

Third Party South 3,782 4,150 4,307 7,932 8,672Sales

Volumes(tons, North 261 115 113 376 397thousands)

Fee Harvest West 2,101 2,099 2,236 4,200 4,546Volumes

(tons, South 5,376 5,856 5,914 11,232 12,044thousands)

North 337 199 194 536 580

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

Weyerhaeuser Company Real Estate, Energy & Natural Resources Segment

Q2.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Net sales $ 106 $ 110 $ 65 $ 216 $ 177

Costs of sales 34 41 40 75 110

Gross margin 72 69 25 141 67

General andadministrative 6 6 6 12 12expenses

Operatingincome and Net $ 66 $ 63 $ 19 $ 129 $ 55contributionto earnings

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

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Operating $ 66 $ 63 $ 19 $ 129 $ 55income

Depreciation,depletion and 3 4 4 7 7amortization

Basis of real 27 24 34 51 96estate sold

Adjusted $ 96 $ 91 $ 57 $ 187 $ 158EBITDA^(1)

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

Selected Segment Items

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Cash spent forcapital $ - $ - $ - $ - $ -expenditures

Segment Statistics

Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Net Sales Real $ 84 $ 83 $ 48 $ 167 $ 143 Estate

Energy(millions) and 22 27 17 49 34 Natural Resources

Total $ 106 $ 110 $ 65 $ 216 $ 177

Acres Sold Real 19,455 18,415 31,337 37,870 76,310 Estate

Price per Real $ 3,803 $ 3,227 $ 1,501 $ 3,523 $ 1,790Acre Estate

Basis as aPercent of Real 32 % 29 % 71 % 31 % 67 %Real EstateEstate NetSales

Weyerhaeuser Company Wood Products Segment

Q2.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Net sales $ 2,021 $ 2,629 $ 1,207 $ 4,650 $ 2,442

Costs of sales 1,124 1,229 997 2,353 2,037

Gross margin 897 1,400 210 2,297 405

Selling expenses 19 21 18 40 39

General and administrative 35 35 33 70 69expenses

Other operating costs, net 3 6 - 9 4

Operating income and Net $ 840 $ 1,338 $ 159 $ 2,178 $ 293contribution to earnings

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

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Operating income $ 840 $ 1,338 $ 159 $ 2,178 $ 293

Depreciation, depletion and 49 48 47 97 97amortization

Special items - - (8) - (8)

Adjusted EBITDA^(1) $ 889 $ 1,386 $ 198 $ 2,275 $ 382

^(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 Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Product remediation $ - $ - $ 8 $ - $ 8recovery

Selected Segment Items

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Total decrease (increase) $ (212) $ (49) $ 56 $ (261) $ (130)in working capital^(2)

Cash spent for capital $ (25) $ (51) $ (45) $ (76) $ (83)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 Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020party sales realizations

Structural Lumber Third party $ 990 $ 1,349 $ 538 $ 2,339 $ 1,046 net sales

(volumes Third partypresented sales $ 864 $ 1,077 $ 438 $ 975 $ 427 realizations

Third partyin board feet) sales volumes^ 1,145 1,252 1,225 2,397 2,447 (3)

Production 1,211 1,234 1,108 2,445 2,317 volumes

Oriented Strand Third party $ 438 $ 605 $ 179 $ 1,043 $ 369 net sales

Third partyBoard sales $ 614 $ 911 $ 240 $ 757 $ 243 realizations

(volumes Third partypresented sales volumes^ 714 663 747 1,377 1,517 (3)

in square feet 3/ Production 742 683 742 1,425 1,5198") volumes

Engineered Solid Third party $ 142 $ 166 $ 111 $ 308 $ 238 net sales

Third partySection sales $ 2,285 $ 2,533 $ 2,151 $ 2,412 $ 2,150 realizations

(volumes Third partypresented sales volumes^ 6.2 6.6 5.2 12.8 11.1 (3)

in cubic feet) Production 6.0 6.2 5.3 12.2 11.4 volumes

Engineered Third party $ 83 $ 104 $ 70 $ 187 $ 148 net sales

Third partyI-joists sales $ 1,773 $ 1,980 $ 1,645 $ 1,882 $ 1,656 realizations

(volumes Third partypresented sales volumes^ 47 53 42 100 89 (3)

in lineal feet) Production 44 51 38 95 85 volumes

Softwood Plywood Third party $ 56 $ 69 $ 34 $ 125 $ 73 net sales

(volumes Third partypresented sales $ 594 $ 902 $ 356 $ 733 $ 352 realizations

in square feet 3/ Third party8") sales volumes^ 94 77 95 171 208 (3)

Production 80 62 76 142 173 volumes

Medium Density Third party $ 48 $ 43 $ 33 $ 91 $ 77 net sales

Third partyFiberboard sales $ 842 $ 869 $ 825 $ 855 $ 834 realizations

(volumes Third partypresented sales volumes^ 57 50 40 107 92 (3)

in square feet 3/ Production 56 52 35 108 914") volumes

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

Weyerhaeuser Company Unallocated Items

Q2.2021 Analyst PackagePreliminary 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 Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Unallocated corporatefunction and variable $ (25) $ (36) $ (23) $ (61) $ (42)compensation expense

Liability classified (1) - (4) (1) 6share-based compensation

Foreign exchange gain (2) (1) 3 (3) (5)(loss)

Elimination of intersegmentprofit in inventory and (17) (28) 18 (45) 5LIFO

Other, net (13) (20) (4) (33) (9)

Operating loss (58) (85) (10) (143) (45)

Non-operating pension andother post-employment (8) (1) (10) (9) (19)benefit costs

Interest income and other 1 2 2 3 3

Net charge to earnings $ (65) $ (84) $ (18) $ (149) $ (61)

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

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Operating loss $ (58) $ (85) $ (10) $ (143) $ (45)

Depreciation, depletion and 2 1 1 3 3amortization

Special items - - - - (12)

Adjusted EBITDA^(1) $ (56) $ (84) $ (9) $ (140) $ (54)

^(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 Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Legal benefit $ - $ - $ - $ - $ 12

Special items included inoperating loss and net $ - $ - $ - $ - $ 12charge to earnings

Unallocated Selected Items

in millions Q1.2021 Q2.2021 Q2.2020 YTD.2021 YTD.2020

Cash spent for capital $ - $ - $ - $ - $ -expenditures

View original content to download multimedia: https://www.prnewswire.com/news-releases/weyerhaeuser-reports-record-second-quarter-results-301344939.html

SOURCE Weyerhaeuser Company