WEYERHAEUSER FACT BOOK

Transcription

1 WEYERHAEUSER FACT BOOK

2 WELCOME TO THE 2009 WEYERHAEUSER FACT BOOK This publication is designed to provide information to security analysts, investors and others doing research on the long-term financial performance of our company. The information presented here is as of December 31, 2009, unless indicated otherwise, and is intended to be read in conjunction with our 2009 Annual Report/Form 10-K. TABLE OF CONTENTS COMPANY FINANCIAL HIGHLIGHTS Financial Highlights 02 Consolidated Statement of Operations 03 Consolidated Net Sales and Revenues by Source 04 Consolidated Balance Sheet 05 Financial Data by Business Segment 06 Consolidated Assets by Business Segment 06 Capital Expenditures by Business Segment (Excluding Acquisitions) TIMBERLANDS 07 Financial Data 07 Sales Volumes and Prices 07 Production Volumes 08 Products 08 Portfolio of Timberland Assets 08 Regional Inventory Information 10 Map of Mineral, Oil and Gas Managed Assets WOOD PRODUCTS 11 Financial Data 11 Sales Volumes and Prices 11 Production Volumes 12 Products 13 Mill Locations and Capacities 14 Permanently Closed and Sold Facilities CELLULOSE FIBERS 15 Financial Data 15 Sales Volumes and Prices 15 Production Volumes 16 Products 16 Mill Locations and Capacities 16 Liquid Packaging Board REAL ESTATE 17 Financial Data 17 Single-Family Unit Statistics 17 Other Units Sold 18 Real Estate Operations All data as of December 31, 2009

3 2009 FINANCIAL HIGHLIGHTS DOLLAR AMOUNTS IN MILLIONS EXCEPT PER-SHARE FIGURES CHANGE Net sales and revenues $ 5,528 $ 8, % Net loss attributable to Weyerhaeuser common shareholders $ (545) $ (1,176) 53.66% Basic and diluted net loss per share attributable to Weyerhaeuser common shareholders (includes discontinued operations) $ (2.58) $ (5.57) 53.68% Total assets $ 15,250 $ 16, % Capital expenditures, excluding acquisitions $ 221 $ % Weyerhaeuser shareholders interest $ 4,044 $ 4, % Number of common and exchangeable shares outstanding (in thousands) 211, , % Book value per share $ $ % Return on shareholders interest -12.3% -18.4% 33.15% Common stock price range $44.15 $19.36 $73.74 $28.94 FINANCIAL INFORMATION Common Share Earnings, Prices and Dividends by Quarter, QUARTER BASIC NET EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO WEYERHAEUSER COMMON SHAREHOLDERS MARKET PRICE HIGH MARKET PRICE LOW DIVIDENDS PAID PER SHARE th $ (0.83) $ $ $ rd nd (0.50) st (1.25) th (5.73) rd nd (0.45) st (0.70) th (0.30) rd nd st WEYERHAEUSER COMPANY 2009 FACT BOOK 1

4 Consolidated Statement of Operations FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES) Net sales and revenues: Forest Products $ 4,624 $ 6,692 $ 8,574 Real Estate 904 1,408 2,359 Total net sales and revenues 5,528 8,100 10,933 Costs and expenses: Forest Products: Cost of products sold 3,937 5,540 7,064 Alternative fuel mixture credits (344) Depreciation, depletion and amortization Selling expenses General and administrative expenses Research and development expenses Charges for restructuring and closures Impairment of goodwill and other assets 182 1, Other operating costs (income), net (269) 11 (30) Real Estate: 4,740 8,008 8,827 Costs and operating expenses 756 1,449 1,746 Depreciation and amortization Selling expenses General and administrative expenses Other operating costs (income), net 30 2 (4) Impairment of long-lived assets and other related charges ,235 2,693 2,199 Total costs and expenses 5,975 10,701 11,026 Operating loss (447) (2,601) (93) Interest expense and other: Forest Products: Interest expense incurred (436) (505) (527) Less: interest capitalized Gain (loss) on early extinguishment of debt (28) 32 (45) Interest income and other Gain on Uruguay restructuring 250 Equity in income (loss) of affiliates (5) 15 (5) Real Estate: Interest expense incurred (30) (45) (57) Less: interest capitalized Interest income and other Equity in income of unconsolidated entities Impairment of investments and other related charges (7) (160) (66) Loss from continuing operations before income taxes (842) (2,809) (478) Income tax benefit Loss from continuing operations (568) (1,909) (299) Discontinued operations, net of income taxes 667 1,038 Net earnings (loss) (568) (1,242) 739 Less: net loss attributable to noncontrolling interests Net earnings (loss) attributable to Weyerhaeuser common shareholders $ (545) $ (1,176) $ 790 Basic and diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders: Continuing operations $ (2.58) $ (8.72) $ (1.13) Discontinued operations Net earnings (loss) per share $ (2.58) $ (5.57) $ 3.60 Dividends paid per share $ 0.60 $ 2.40 $

5 Consolidated Net Sales and Revenues by Source FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) Forest Products: Logs $ 502 $ 682 $ 677 $ 805 $ 823 Pay as cut timber sales Timberlands sales and exchanges Higher and better use land sales Minerals, oil and gas Softwood lumber 885 1,565 2,433 3,145 3,778 Engineered lumber products ,142 1,553 1,644 Oriented strand board ,164 Plywood Hardwood lumber Pulp 1,148 1,357 1,478 1,657 1,482 Liquid packaging board Transportation Composite panels (2) Paper (3) 433 2,468 2,417 Coated groundwood (3) Containerboard (4) Packaging (4) 2,449 4,020 3,935 3,712 Kraft bags and sacks (4) Recycling (4) Other products ,238 1,389 1,423 4,624 9,993 14,512 18,915 19,968 Net sales and revenues from discontinued operations (3,301) (5,938) (8,651) (8,909) $ 4,624 $ 6,692 $ 8,574 $ 10,264 $ 11,059 Real Estate: Single-family housing 832 1,294 2,079 2,951 2,686 Land Other ,408 2,359 3,335 2,915 Total consolidated $ 5,528 $ 8,100 $ 10,933 $ 13,549 $ 13,974 Reflects the sale of our Australian operations in July (2) Reflects the divestitures of our French Composite panel operations in December 2005, Irish Composite panel operations in November 2006, and North American Composite panel operations in July (3) Reflects the Domtar Transaction in March (4) Reflects the sale of our Containerboard, Packaging and Recycling business in August WEYERHAEUSER COMPANY 2009 FACT BOOK 3

6 Consolidated Balance Sheet FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) ASSETS Forest Products Current assets: Cash and cash equivalents $ 1,862 $ 2,288 $ 79 Short-term investments Receivables, less allowances Receivables for taxes Receivables from pension trust Inventories Prepaid expenses Deferred tax assets Current assets of discontinued operations 1,182 Total current assets 3,667 4,090 2,984 Property and equipment, net 3,611 3,869 4,155 Construction in progress Timber and timberlands at cost, less depletion charged to disposals 4,010 4,205 3,769 Investments in and advances to equity affiliates Goodwill Deferred pension and other assets ,475 Restricted assets held by special purpose entities Non-current assets of discontinued operations 4,205 13,248 14,080 20,026 Real Estate Cash and cash equivalents Receivables, less discounts and allowances Inventory 1,515 1,860 2,887 Investments in unconsolidated entities Deferred tax assets Other assets Consolidated assets not owned ,002 2,615 3,736 Total assets $ 15,250 $ 16,695 $ 23,762 LIABILITIES AND EQUITY Forest Products Current liabilities: Notes payable and commercial paper $ 4 $ 1 $ 54 Current maturities of long-term debt Accounts payable Accrued liabilities Liabilities of discontinued operations 497 Total current liabilities 955 1,722 2,529 Long-term debt 5,281 5,153 6,059 Deferred income taxes 1,538 1,805 2,579 Deferred pension, other postretirement benefits and other liabilities 2,000 1,618 1,721 Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities Non-current liabilities of discontinued operations ,542 11,062 14,376 Real Estate Long-term debt Other liabilities Consolidated liabilities not owned ,215 Total liabilities 11,196 11,848 15,591 Weyerhaeuser shareholders interest 4,044 4,814 7,981 Noncontrolling interest Total liabilities and equity $ 15,250 $ 16,695 $ 23,762 4

7 Financial Data by Business Segment FOR THE YEAR ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS CORPORATE AND OTHER ELIMINATIONS TOTAL FOREST PRODUCTS REAL ESTATE TOTAL Trade sales and revenues $ 714 $ 2,234 $ 1,511 $ 165 $ $ 4,624 $ 904 $ 5,528 Intersegment sales (613) Net sales and revenues 1,251 2,298 1, (613) 4, ,528 Costs and expenses: Costs of products sold 932 2,317 1, (613) 3, ,693 Alternative fuel mixture credit (344) (344) (344) Depreciation, depletion and amortization Selling expenses General and administrative expenses Research and development expenses Charges for restructuring and closures Impairment of goodwill and other assets Real Estate impairments and other related charges Other operating costs (income), net (207) 27 (10) (79) (269) 30 (239) Total costs and expenses 922 3,033 1, (613) 4,740 1,235 5,975 Operating income (loss) 329 (735) 441 (151) (116) (331) (447) Interest income and other Equity in income (loss) of equity affiliates 2 (7) (5) Investment impairments and other related charges (7) (7) Loss attributable to noncontrolling interests Earnings (loss) before interest and income taxes $ 338 $ (733) $ 444 (107) (58) (299) (357) Interest expense, net of capitalized interest (430) (430) (4) (434) Loss on early extinguishment of debt (28) (28) (28) Loss before income taxes (565) (522) (303) (819) Income tax benefit Net loss attributable to Weyerhaeuser common shareholders $ (406) $ $ (357) $ (188) $ (545) Financial Data by Business Segment FOR THE YEAR ENDED DECEMBER 31, 2008 (DOLLAR AMOUNTS IN MILLIONS) CONTAINER- BOARD PACKAGING AND RECYCLING ELIMINATIONS / DISCONTINUED OPERATIONS TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS CORPORATE AND OTHER TOTAL FOREST PRODUCTS REAL ESTATE TOTAL Trade sales and revenues $ 899 $ 3,768 $ 1,765 $ 392 $ 3,169 $ (3,301) $ 6,692 $ 1,408 $ 8,100 Intersegment sales 1, (1,243) Net sales and revenues 1,933 3,934 1, ,171 (4,544) 6,692 1,408 8,100 Costs and expenses: Costs of products sold 1,354 3,920 1, ,649 (3,976) 5,540 1,449 6,989 Depreciation, depletion and amortization (63) Selling expenses (91) General and administrative expenses (93) Research and development expenses Charges for restructuring and closures (7) Impairment of goodwill and other assets (6) 1,019 1,019 Real Estate impairments and other related charges Other operating costs (income), net (27) 5 (12) (1,378) 18 1, Total costs and expenses (income) 1,553 5,478 1,643 (803) 2,968 (2,831) 8,008 2,693 10,701 Operating income (loss) 380 (1,544) 129 1, (1,713) (1,316) (1,285) (2,601) Interest income and other Equity in income (loss) of equity affiliates (2) (5) (5) Investment impairments and other related charges (160) (160) Loss attributable to noncontrolling interests Earnings (loss) before interest and income taxes $ 384 $ (1,547) $ 147 $ 204 1,558 (1,718) (972) (1,357) (2,329) Interest expense, net of capitalized interest (415) 1 (414) (414) Earnings (loss) before income taxes 1,143 (1,717) (1,386) (1,357) (2,743) Income tax benefit (provision) (660) 1, Earnings (loss) from continuing operations 483 (667) (996) (847) (1,843) Earnings from discontinued operations Net earnings (loss) attributable to Weyerhaeuser common shareholders $ 483 $ $ (329) $ (847) $ (1,176) WEYERHAEUSER COMPANY 2009 FACT BOOK 5

8 Consolidated Assets by Business Segment FOR THE THREE YEAR PERIOD DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS REAL ESTATE CORPORATE AND OTHER DISCONTINUED SEGMENTS AND INTERSEGMENT ELIMINATION TOTAL Current assets 2009 $ 141 $ 343 $ 360 $ 638 $ 2,823 $ $ 4, ,944 5, , ,182 4,339 Timber and timberlands at cost, less depletion charged to disposals 2009 $ 4,010 $ $ $ $ $ $ 4, , , , ,769 Property and equipment, net 2009 $ 336 $ 1,354 $ 1,696 $ 35 $ 277 $ $ 3, ,532 1, , ,867 1, ,815 7,281 Other 2009 $ 225 $ 27 $ 199 $ 1,329 $ 1,457 $ $ 3, ,578 1,373 3, ,359 3,185 1,390 8,373 Combined total 2009 $ 4,712 $ 1,724 $ 2,255 $ 2,002 $ 4,557 $ $ 15, ,917 2,104 2,363 2,615 4,696 16, ,471 3,573 2,624 3,736 3,971 5,387 23,762 Discontinued segments includes Fine Paper and Containerboard, Packaging and Recycling Capital Expenditures by Business Segment (Excluding Acquisitions) FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS REAL ESTATE CORPORATE AND OTHER DISCONTINUED SEGMENTS TOTAL Timberlands reforestation 2009 $ 36 $ $ $ $ $ $ Property and equipment 2009 $ 47 $ 57 $ 61 $ 6 $ 14 $ $ Combined total 2009 $ 83 $ 57 $ 61 $ 6 $ 14 $ $ Discontinued segments includes Fine Paper and Containerboard, Packaging and Recycling 6

9 TIMBERLANDS Financial Data FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) Trade sales and revenues $ 714 $ 899 $ 922 Intersegment sales 537 1,034 1,346 Net sales and revenues 1,251 1,933 2,268 Costs and expenses: Costs of products sold 932 1,354 1,461 Depreciation, depletion and amortization Selling expenses General and administrative expenses Research and development expenses Charges for restructuring and closures 7 1 Impairment of goodwill and other assets 20 1 Other operating income, net (207) (27) (34) Total costs and expenses 922 1,553 1,646 Operating income Interest income and other Equity in loss of equity affiliates (2) (2) Income attributable to noncontrolling interests Earnings before interest and income taxes $ 338 $ 384 $ 627 Sales Volumes and Prices FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 SALES VOLUMES (IN THOUSANDS) Logs cubic meters West 4,479 6,967 6,212 6,602 6,380 South 3,536 2,347 1,581 1,698 1,925 Canada ,425 1,745 International Total 8,729 10,172 8,718 9,780 10,081 SELECTED PRODUCT PRICES Export logs $/MBF: Coastal Hemlock $ 314 $ 389 $ 433 $ 442 $ 439 Coastal Douglas fir $ 686 $ 731 $ 767 $ 833 $ 780 Reflects the divestiture of our B.C. Coastal operations in May 2005 and the Domtar Transaction in March Production Volumes FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 (IN THOUSANDS) Fee depletion cubic meters West 6,359 10,626 10,403 10,666 10,630 South 8,996 12,363 12,645 13,246 13,219 Canada 856 International (2) 503 Total 15,858 22,989 23,048 23,912 24,705 Reflects the divestiture of our B.C. Coastal operations in May (2) International forestlands started commercial thinning in 2009 leading to production volumes. WEYERHAEUSER COMPANY 2009 FACT BOOK 7

10 Timberlands Products MAIN PRODUCTS Logs Timberlands Timber Minerals, oil and gas Other products HOW THEY RE USED Logs are made into lumber, other wood and building products and pulp and paper products Timberland tracts are exchanged to improve our timberland portfolio or are sold to third parties by our land development subsidiary within this segment Standing timber may be sold to third parties or converted into chips and other raw materials to be made into pulp and paper products Sold into construction and energy markets Includes seed and seedlings, poles, as well as plywood and hardwood lumber produced by our international operations, primarily in South America PORTFOLIO OF TIMBERLAND ASSETS U.S. Owned and Leased Timberlands ACRES IN THOUSANDS South Alabama 569 Arkansas 629 Louisiana 1,031 Mississippi 794 North Carolina 541 Oklahoma/Texas 550 West REGIONAL INVENTORY INFORMATION United States GEOGRAPHIC AREA TOTAL INVENTORY AT DECEMBER 31, 2009 MILLIONS OF CUBIC METERS U.S. West 160 South 140 Total U.S. 300 Canadian Licensed Timberlands GEOGRAPHIC AREA TOTAL INVENTORY AT DECEMBER 31, 2009 MILLIONS OF CUBIC METERS Canada Alberta 246 British Columbia 24 Ontario 33 Saskatchewan 80 Total Canada 383 International GEOGRAPHIC AREA TOTAL INVENTORY AT DECEMBER 31, 2009 MILLIONS OF CUBIC METERS International Uruguay 6 China Total International 6 Oregon 964 Washington 1,099 TOTAL 6.2 million acres Canadian Licensed Timberlands ACRES IN MILLIONS Alberta 5.4 British Columbia 2.2 Ontario 2.6 Saskatchewan 5.0 TOTAL 15.2 million acres International Owned and Leased Timberlands ACRES IN THOUSANDS Uruguay 341 China 45 TOTAL 386 thousand acres Includes Weyerhaeuser percentage ownership of timberlands owned and managed through joint ventures. 8

11 Western United States 2009 WESTERN U.S. INVENTORY BY SPECIES 2009 WESTERN U.S. INVENTORY BY AGE / CLASS MILLIONS OF CUBIC METERS DOUGLAS FIR / CEDAR WHITEWOOD OTHER CONIFER HARDWOOD 18% 1% DOUGLAS FIR / CEDAR WHITEWOOD OTHER CONIFER HARDWOOD 5% % AGE (in years) Note: inventory charted also includes areas set aside for conservation Southern United States 2009 SOUTHERN U.S. INVENTORY BY SPECIES 2009 SOUTHERN U.S. INVENTORY BY AGE / CLASS MILLIONS OF CUBIC METERS SOUTHERN YELLOW PINE HARDWOOD 24% SOUTHERN YELLOW PINE HARDWOOD 20 76% AGE (in years) Note: inventory charted also includes areas set aside for conservation International 2009 INTERNATIONAL INVENTORY BY SPECIES (URUGUAY) 2009 INTERNATIONAL INVENTORY BY AGE / CLASS (URUGUAY) MILLIONS OF CUBIC METERS CONIFER EUCALYPTUS CONIFER EUCALYPTUS 36% % AGE (in years) Note: inventory charted also includes areas set aside for conservation WEYERHAEUSER COMPANY 2009 FACT BOOK 9

12 WESTERN UNITED STATES Surface acres 2.1 million Net mineral acres 3.4 million Active mining leases 20 (5,997 acres) Geothermal agreements 5 Active oil & gas leases 9 (81,376 acres) Mineral, Oil and Gas MANAGED ASSETS 2009 SOUTHERN UNITED STATES 10 Surface acres 3.4 million Net mineral acres 3.7 million Active mining leases 13 (15,549 acres) Geothermal agreements Active oil & gas leases 578 (529,528 acres)

13 WOOD PRODUCTS Financial Data FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) Trade sales and revenues $ 2,234 $ 3,768 $ 5,699 Intersegment sales Net sales and revenues 2,298 3,934 5,929 Costs and expenses: Costs of products sold 2,317 3,920 5,656 Depreciation, depletion and amortization Selling expenses General and administrative expenses Research and development expenses Charges for restructuring and closures Impairment of goodwill and other assets Other operating costs, net Total costs and expenses 3,033 5,478 6,654 Operating loss (735) (1,544) (725) Interest income and other Equity in loss of equity affiliates (5) (6) Income attributable to noncontrolling interests (4) Loss before interest and income taxes $ (733) $ (1,547) $ (734) Sales Volumes and Prices FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 SALES VOLUMES (IN MILLIONS) Softwood lumber board feet 3,353 4,722 6,538 7,871 8,650 Engineered solid section cubic feet Engineered I-Joists lineal feet Oriented strand board square feet (³ 8") 1,432 2,438 3,466 4,096 3,948 Plywood square feet (³ 8") ,049 1,663 2,180 Veneer square feet (³ 8") Composite panels square feet (¾") ,229 Hardwood lumber board feet Logs cubic meters ,276 SELECTED PUBLISHED PRICES: Lumber (common) $/MBF 2x4 Douglas fir (kiln dried) $ 207 $ 246 $ 282 $ 351 $ 406 2x4 Douglas fir (green) x4 Southern yellow pine (kiln dried) x4 Spruce-pine-fir (kiln dried) Oriented strand board (7/16" 24 16" North Central) $/MSF Plywood (½" CDX) $/MSF West South Reflects the divestiture of our B.C. Coastal operations in May 2005 and the Domtar Transaction in March Production Volumes FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 (IN MILLIONS) Softwood lumber board feet 3,098 4,451 5,490 6,355 6,986 Engineered solid section cubic feet (2) Engineered I-Joists lineal feet (2) Oriented strand board square feet (³ 8") 1,448 2,468 3,428 4,166 4,078 Plywood square feet (³ 8") (3) ,155 Veneer square feet (³ 8") (3)(4) ,150 1,739 1,979 Composite panels square feet (¾") 666 1,080 Hardwood lumber board feet Reflects the divestitures of our B.C. Coastal operations in May 2005, North American composite panel operations in July 2006 and the Domtar Transaction in March (2) Weyerhaeuser engineered I-joist facilities also may produce engineered solid section. (3) All Weyerhaeuser plywood facilities also produce veneer. (4) Veneer production represents lathe production and includes volumes that are used to produce plywood and engineered lumber products by our mills. WEYERHAEUSER COMPANY 2009 FACT BOOK 11

14 PRODUCTS Softwood Lumber PRODUCTS DESCRIPTION APPLICATIONS Machine-stress-related lumber (MSR) Machine evaluated lumber (MEL) Premium / Prime Lumber Standard & Better / #2 & Better Lumber Lumber that is rigorously tested to meet precision requirements for strength and stiffness. Each piece is visually inspected for inconsistencies like wane and warp. Made from Douglas-fir, hem-fir, southern pine and SPF (spruce-pine-fir). Structural frame lumber with high stiffness and good appearance. Made from Douglas-fir, hem-fir, southern pine and SPF. Structural frame lumber with strength and appearance appropriate for general construction. Made from Douglas-fir, hem-fir, southern pine and SPF. #3 / Utility / #4 & Better Lumber Lumber for use in applications where strength and appearance are less important. Made from Douglas-fir, hem-fir, southern pine and SPF. Studs Boards Special purpose grade available in precut lengths common for ceiling heights so they require little or no trimming. Made from Douglas-fir, hem-fir, southern pine and SPF. Boards graded for appearance are 1 to 1 1/2 inches thick and 2 or more inches wide. Made from southern pine. Root and floor trusses, open-web floor joists, engineered floor systems Appearance construction framing and home projects Residential construction framing (walls, floors, etc.) Industrial applications, such as pallet manufacturing Specifically suited to wall framing Shelving, crating, fencing and remanufacturing Squares, Planks, Timbers Thick pieces of wood made from Douglas-fir, hem-fir and southern pine. Construction involving special beam, stringer or design requirement Engineered Wood Products PRODUCTS DESCRIPTION APPLICATIONS TJI Joists Microllam Laminated Veneer Lumber Parallam Parallel Strand Lumber TimberStrand Laminated Strand Lumber Panels TJ I-joists are manufactured with either Microllam laminated veneer lumber (LVL) or solid-sawn finger jointed lumber flanges and Performance Plus Panel webs. Engineered for dimensional stability, they are light weight, and come in long lengths that are faster and easier to install than traditional framing. Microllam laminated veneer lumber (LVL) is manufactured from thin sheets of veneer bonded together to make headers and beams that span long distances and support heavy loads. Beams and headers can be built-up on site to cut down on heavy lifting providing quick installation and reducing waste. Parallam parallel strand lumber (PSL) is made from long, thin strands of wood bonded together using a microwave process. The beams and columns are manufactured in large sections and long spans that can support heavy loads over long spans, allowing open floor plans. It s grain makes it appropriate for exposed interior beams and columns. Also available with preservative treatment for exterior applications. TimberStrand laminated strand lumber (LSL) is manufactured primarily from small-diameter trees to produce high-quality and versatile engineered lumber products. These products are designed to resist twisting, shrinking and bowing, thus helping prevent sheetrock cracks after installation. PRODUCTS DESCRIPTION APPLICATIONS Structurwood, Structurwood Edge Structurwood Edge Gold, SturdiStep Trus Joist Performance Plus Panel Plywood Structurwood oriented strand board uses wood strands that are oriented in a cross pattern and bonded together under heat and pressure using thermosetting adhesives to create a strong, stiff panel. Used primarily for residential construction. Weyerhaeuser plywood is manufactured from thin sheets of cross-laminated veneer bonded together with adhesives using heat and pressure. A variety of grades, finishes and thicknesses of plywood panels are available. TJI -I joists, floor joists, roof joists, custom applications and factory-built structures Beams and headers, I-joist flanges, concrete forming, scaffold planks, signposts and light poles, custom applications and factory-built structures Columns and posts, exposed applications, headers and beams, railroad ties and timbers, concrete forming, wood bridges, custom applications Beams and columns, factory-built structures (window, door and garage door headers), rim board, wall studs and plates, furniture and millwork, concrete forming, truss chords, custom applications. Structural wall and roof sheathing, subflooring, Performance Plus web, RV flooring and stair treads. Building and construction panels, appearance panels Hardwood PRODUCTS DESCRIPTION APPLICATIONS Hardwood lumber, appearance plywood, and pallet stock Manufacture and supply multiple species including alder, western hemlock, maple, oak, cherry and eucalyptus. Sold under the brands of Northwest Hardwoods, Lyptus, and Choicewood. Cabinets, mouldings, architectural millwork, panel furniture, pallet cants and ties, retail boards 12

15 MILL LOCATIONS AND CAPACITIES Softwood Lumber (SWL) Total capacity: 5.2 billion board feet Total facilities: 23 Western United States (SWL) BOARD FEET IN MILLIONS Cottage Grove, OR 360 Longview, WA 475 Raymond, WA 210 Santiam, OR 350 Warrenton, OR 200 Total capacity: 1.6 billion board feet. Total facilities: 5 Southern United States (SWL) BOARD FEET IN MILLIONS Bogalusa, LA (2) 150 Bruce, MS 230 Dierks, AR 300 Dodson, LA 180 Greenville, NC 260 Holden, LA 170 Idabel, OK 140 McComb, MS 240 Millport, AL 110 New Bern, NC 120 Philadelphia, MS 230 Pine Hill, AL (3) 180 Plymouth, NC 260 Silver Creek, MS (2) 160 Zwolle, LA 70 Total capacity: 2.8 billion board feet. Total facilities: 15 Canada (SWL) BOARD FEET IN MILLIONS Drayton Valley, AB 200 Grande Prairie, AB 340 Princeton, BC 275 Total capacity: 0.8 billion board feet Total facilities: 3 Oriented Strand Board SQUARE FEET 3/8" IN MILLIONS Arcadia, LA 425 Edson, AB 440 Elkin, NC 425 Grayling, MI 535 Hudson Bay, SK (3) 550 Sutton, WV 640 Wawa, ON (3) 470 Total capacity: 3.5 billion square feet Total facilities: 7 Engineered Solid Section CUBIC FEET IN MILLIONS Albany, OR 3 Buckhannon, WV 7 Colbert, GA (3) 3 Deerwood, MN (3) 6 Evergreen, AL (3) 6 Kenora, ON 12 Natchitoches, LA 4 Simsboro, LA (3) 3 Vancouver, BC 3 Total capacity: 47 million cubic feet Total facilities: 9 Hardwood Lumber BOARD FEET IN MILLIONS Arlington, WA 50 Centralia, WA 60 Dorchester, WI 20 Eugene, OR 60 Garibaldi, OR 40 Lewiston, MI 10 Longview, WA 60 Total capacity: 300 million board feet Total facilities: 7 Engineered I-Joists LINEAL FEET IN MILLIONS Eugene, OR 135 Evergreen, AL (3) 60 Natchitoches, LA 125 Total capacity: 320 million lineal feet Total facilities: 3 Veneer SQUARE FEET 3/8" IN MILLIONS Dodson, LA (3) 250 Emerson, AR 245 Foster, OR 220 Pine Hill, AL (3) 180 Zwolle, LA 250 Total capacity: 1.1 billion square feet 3/8" Total facilities: 5 Plywood SQUARE FEET 3/8" IN MILLIONS Emerson, AR 210 Zwolle, LA 250 Total capacity: 460 million square feet Total facilities: 2 Sold in 2010 (2) Contract mills (3) Indefinite closure announced WEYERHAEUSER COMPANY 2009 FACT BOOK 13

16 Facilities permanently closed or announced for sale in 2008 and 2009 TYPE OF FACILITY LOCATION DISPOSITION CAPACITY Trus Joist Commercial division Various Sold in 2009 Not Reported 7 U.S. Distribution Facilities Various Sold Not Reported 10 U.S. Distribution Facilities Various Closed or closure announced Not Reported Albany Trucking Albany, OR Sold in 2009 Not Reported Softwood lumber Warrenton, OR Sold in million board feet Coburg, OR Closed 350 million board feet Green Mountain, WA Closed 340 million board feet Carrot River, SK Sold in million board feet Aberdeen, WA Closed 200 million board feet Dallas, OR Closed 250 million board feet Wright City, OK Closed 240 million board feet Kamloops, BC Closed 210 million board feet Lebanon, OR Closed 350 million board feet Taylor, LA Closed 90 million board feet Veneer and plywood Aberdeen, WA Sold in million square feet (3/8") Hudson Bay, SK Sold in million square feet (3/8") Engineered wood products Valdosta, GA Closed 100 million lineal feet Hazard, KY Closed 8 million cubic feet Junction City, OR Sold in 2009 Not Reported Strand technology Miramichi, NB Closed 430 million square feet (3/8") Drayton Valley, AB Closed 415 million square feet (3/8") Hardwood Lumber Delta, BC Closed 50 million board feet 14

17 CELLULOSE FIBERS Financial Data FOR THE THREE YEAR PERIOD DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) Trade sales and revenues $ 1,511 $ 1,765 $ 1,832 Intersegment sales 7 40 Net sales and revenues 1,511 1,772 1,872 Costs and expenses: Costs of products sold 1,202 1,324 1,411 Alternative fuel mixture credit (344) Depreciation, depletion and amortization Selling expenses General and administrative expenses Research and development expenses Charges for restructuring and closures 1 2 Impairment of goodwill and other assets Other operating income, net (10) (12) (12) Total costs and expenses 1,070 1,643 1,641 Operating income Interest income and other Equity in income (loss) of equity affiliates 2 17 (3) Earnings before interest and income taxes $ 444 $ 147 $ 229 Sales Volumes and Prices FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 SALES VOLUMES (IN THOUSANDS) Pulp air-dry metric tons 1,697 1,704 2,070 2,621 2,502 Liquid packaging board tons SELECTED PUBLISHED PRICES (PER TON): Pulp NBKP air-dry metric U.S. $ 718 $ 857 $ 823 $ 721 $ 646 Reflects the Domtar Transaction in March Production Volumes FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, 2009 (IN THOUSANDS) Pulp air-dry metric tons 1,629 1,760 1,851 2,588 2,502 Liquid packaging board tons Reflects the Domtar Transaction in March WEYERHAEUSER COMPANY 2009 FACT BOOK 15

18 Cellulose Fibers Products PRODUCTS HOW THEY RE USED Percentage of 2009 Net Sales in Cellulose Fibers Fluff pulp (Southern softwood kraft fiber) Papergrade pulp (Southern and Northern softwood kraft fiber) Specialty chemical cellulose pulp Used in sanitary disposable products that require bulk, softness and absorbency Used in products that include printing and writing papers and tissue Used in textiles, absorbent products, specialty packaging, specialty applications and proprietary high-bulking fibers FLUFF PULP PAPERGRADE PULP LIQUID PACKAGING BOARD SPECIALTY CHEMICAL CELLULOSE PULP OTHER PRODUCTS 20% Liquid packaging board Converted into containers to hold liquid materials such as milk, juice and tea. 42% Other products Slush pulp Wet lap pulp Used in the manufacture of paper products 19% 14% Mill Locations and Capacities METRIC TONS IN THOUSANDS Columbus, MS 465 5% Flint River, GA 350 Grande Prairie, AB 370 New Bern, NC 330 Port Wentworth, GA 330 Total capacity: 1.8 million metric tons Total facilities: 5 LIQUID PACKAGING BOARD METRIC TONS IN THOUSANDS Longview, WA

19 REAL ESTATE Financial Data FOR THE THREE YEAR PERIOD ENDED DECEMBER 31, 2009 (DOLLAR AMOUNTS IN MILLIONS) Net sales and revenues $ 904 $ 1,408 $ 2,359 Costs and expenses: Costs and operating expenses 756 1,449 1,746 Depreciation and amortization Selling expenses General and administrative expenses Other operating costs (income), net 30 2 (4) Charge for impairment of long-lived assets and other related charges Total costs and expenses 1,235 2,693 2,199 Operating income (loss) (331) (1,285) 160 Interest income and other Equity in income of unconsolidated entities Investment impairment and other related charges (7) (160) (66) Loss attributable to noncontrolling interests Earnings (loss) before interest and income taxes (299) (1,357) 204 Interest expense, net of capitalized interest (4) Earnings (loss) before income taxes (303) (1,357) 204 Income tax benefit (expense) (75) Earnings (loss) attributable to Weyerhaeuser common shareholders $ (188) $ (847) $ 129 Single-Family Unit Statistics FOR THE FIVE YEAR PERIOD ENDED DECEMBER 31, Homes sold 2,269 2,522 4,152 4,541 5,685 Homes closed 2,177 3,188 4,427 5,836 5,647 Homes sold but not closed (backlog) ,224 1,499 2,410 Cancellation rate 23% 32% 26% 29% 16% Buyer traffic 65, , , , ,978 Average price of homes closed $ 382,000 $ 406,000 $ 470,000 $ 506,000 $ 476,000 Single-family gross margins excluding impairments (%) 17.5% 15.1% 21.5% 28.0% 32.9% Single-family gross margin equals revenue less cost of sales and period costs (other than impairments, deposit write-offs, and project abandonments). Other Units Sold OTHER UNITS CLOSED Residential lots 5,011 5, , Multi-family units WEYERHAEUSER COMPANY 2009 FACT BOOK 17

20 Real Estate Operations COMPANY PRINCIPAL MARKETS PRODUCT MIX PRODUCT PRICES Maracay Homes Phoenix and Tucson, Arizona Entry-level homes Range: $105,000 $220,000 Move-up homes Range: $156,000 $532,000 Luxury homes Range: $398,000 $950,000 Average price of homes closed in 2009: $242,000 Pardee Homes Los Angeles, Inland Empire and San Diego, California and Las Vegas, Nevada Entry-level homes Range: $130,000 $350,000 Move-up homes Range: $300,000 $650,000 Luxury homes Range: $600,000 $1,350,000 Average price of homes closed in 2009: $446,000 Quadrant Homes Puget Sound region of Washington State Entry-level homes Range: $170,000 $300,000 Move-up homes Range: $200,000 $475,000 Average price of homes closed in 2009: $271,000 Trendmaker Homes Houston, Texas Move-up homes Range: $234,000 $743,000 Average price of homes closed in 2009: $398,000 Winchester Homes Maryland and Virginia suburbs of Washington, DC Entry-level homes Range: $350,000 $595,000 Move-up homes Range: $450,000 $1,005,000 Luxury homes Range: $800,000 $1,800,000 Average price of homes closed in 2009: $644,000 Many of our communities contain a mixture of products including entry-level, move-up and luxury homes 18

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