PotlatchDeltic : Presentation(Link opens in a new window)

Q4 2022 EARNINGS

January 31, 2023

FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES

FORWARD-LOOKING STATEMENTS

This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company's revenues, costs and expenses; expected liquidity; the U.S. economic condition; the success of the company's business strategies; synergies resulting from the merger with CatchMark Timber Trust, Inc.; the company's capital allocation strategies, including share repurchases and dividend expectations; maintaining the company's investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; Q1 and FY 2023 outlook; favorable housing fundamentals, including the housing market, repair and remodel market, and housing starts; lumber supply, demand and pricing; lumber shipment volumes; the effects of changes in lumber prices on annual EBITDDA; the ability of the new large log line at the Ola, Arkansas sawmill to achieve expected decreased cash processing costs and increased production volumes; expected implementation of our Waldo, Arkansas sawmill modernization project on schedule, and corresponding increase in production capacity with reduction in cash processing costs; expected timber harvest volumes, sawlog and pulpwood mix, and pricing; rural real estate and development real estate demand and sales; land basis and average price per acre and per developed lot; potential for real estate solar energy deals to close; potential carbon credit and carbon capture projects; planned capital expenditures; number of seedlings planted; amount of greenhouse gas emitted; amount of CO2e sequestered; benefits to society from the company's sustainable management of its timberlands; ability to achieve our greenhouse gas reduction goals; business conditions; and similar matters. Words such as "anticipate," "assumes," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "may," "on track," "plan," "potential," "predicting," "project," "schedule," "seek," "should," "target," "will," and similar expressions are intended to identify such forward-looking statements.

You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other "forward-looking" information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic's control, including the impact of pandemic disease on our business, suppliers, customers and employees; changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company's lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates, credit availability, and homebuyers' ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in foreign demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation shortages and disruptions; share price; the successful execution of the company's strategic plans; the company's ability and its contractors' ability to implement the modernization plan for the Waldo sawmill; the company's ability to meet expectations for the Ola sawmill's new large log line; and the other factors described in PotlatchDeltic's Annual Report on Form 10-K and in the company's other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.

NON-GAAP MEASURES

This presentation includes non-GAAP financial information. A reconciliation of those numbers to U.S. GAAP is included in this presentation, which is available on the company's website at www.PotlatchDeltic.com.

2

KEY HIGHLIGHTS 2022

STRATEGY

Leverage to lumber prices

• Mills & indexed Idaho logs
• Strategy aligned with fundamentals
• Provides discretionary capital

Timberlands provide stability

• >80% of gross asset value
• Sustainable management benefits society
• Supports sustainable, growing dividend

Real Estate captures incremental value

• Opportunistic rural land sales
• Chenal master-planned community

PERFORMANCE

Total Adjusted EBITDDA1

• $574.1MM
• 43.1% margin

Segment Adjusted EBITDDA

• Timberlands - $249.4MM
• 6.5MM tons harvested
• Wood Products - $290.9MM
• 1.0BBF lumber shipped
• Real Estate - $73.2MM
• Sold:
• • 20.5K rural acres
  • 181 residential lots
  • 46 commercial acres

Cash Available for Distribution (CAD)2

• $307.1MM

CAPITAL ALLOCATION

Return of cash

• $208MM in regular and special dividends
• $55MM in share repurchases
• Increased quarterly dividend 2.3% in Q4 2022

Growth

• CatchMark merger
• $101MM of timberland bolt-ons
• Waldo, AR sawmill expansion decision

Capital expenditures3

• $83MM spent 2022
• $135MM-$145MMplanned 2023
• Includes $74MM in 2023 for Waldo sawmill

Strong liquidity position

• Investment grade rated
• $643MM of liquidity
• Net debt to enterprise value4 is 16%

OUR ESG COMMITMENT: ENVIRONMENTAL RESPONSIBILITY, SOCIAL RESPONSIBILITY & RESPONSIBLE GOVERNANCE

1 | Total Adjusted EBITDDA is a non-GAAP measure; see appendix for definition and reconciliation. Total Adjusted EBITDDA margin is Total Adjusted EBITDDA divided by revenues. 2 | Cash Available for Distribution (CAD) is a non-GAAP measure; see appendix for definition and reconciliation.

3 | Includes property, plant and equipment, Timberlands reforestation and roads, Real Estate development; excludes acquisition of timber and timberlands.

4 | Net debt to enterprise value is a non-GAAP measure; see appendix for definition. Based on closing stock price of $43.99 on December 30, 2022.

3

CATCHMARK MERGER CAD SYNERGIES

We expect to achieve CAD synergies of $21 million versus the $16 million target we communicated May 31, 2022.

$21.0

	TARGET
SYNERGY ($ MILLIONS)	INITIAL	CURRENT	ACHIEVED COMPLETION

Insource Timberland	$ 3.0	$ 3.0	$ 3.0	Done
Management

Reduce SG&A

$ 9.5

$ 9.5

$ 7.5

Q2 2023

Reduce Interest Expense

$ 3.5

$ 8.5

$ 8.5

Done

TARGET	PROGRESS

TOTAL

$ 16.0

$

21.0

$ 19.0

4

CONSOLIDATED RESULTS

Q4 Total Adjusted EBITDDA of $52 million reflects declines in lumber and indexed sawlog prices, along with seasonally lower harvest volumes.

Total Adjusted EBITDDA - Q3 to Q4 2022 Variance

Key Consolidated Highlights:

Total Adjusted EBITDDA decreased $48.8 million from Q3 2022

Timberlands Adjusted EBITDDA decreased primarily due to lower indexed sawlog prices and seasonally lower harvest volumes Wood Products Adjusted EBITDDA decreased primarily due to lower lumber prices

Real Estate Adjusted EBITDDA declined primarily on lower rural and commercial land sales

Note: Total Adjusted EBITDDA is a non-GAAP measure. See appendix for definition and reconciliation.	5