Packaging Corporation Of America · NYSE:PKG
Packaging Corporation Of America — Packaging Corp of America — Vertical Research Partners 2013 Global Paper & Packaging Conference
14 slides from Packaging Corporation Of America's conference presentation, Nov 21, 2013
Slide 1: Packaging Corporation of America
Packaging Corporation of America Vertical Research Partners 2013 Global Paper & Packaging Conference November 2013 Paul T. Stecko Executive Chairman
Slide 2: Forward-Looking Statements
Packaging Corporation of America PCA Certain in this p ion are forward-looking statements. Forward-looking include about our future financial condition, our industry and our business strategy. Statements that contain words such as “anticipate”, “believe”, “expect”, “intend”, “estimate”, “hope” or si
Slide 3: Boise Acquisition
Boise Acquisition Agreed to Acquire Boise for $12.55 per share 9/16/13 Completed Financing - $2.0 billion 10/15/13 $700MM 10-yr notes: 4.5% Fixed $650MM 7-yr bank debt: LIBOR + 1.625% $650MM 5-yr bank debt: LIBOR + 1.375% Closed Transaction for $1.94 billion in cash 10/25/13 Integration Leadership M
Slide 4: Strategic Value of Boise Acquisition
Strategic Value of Boise Acquisition PGA e. PCA sales to pproxi $5.6 billion with EBITDA of about $1 billion e Provides low cost, lightweight containerboard capacity for continued growth ls 1.1MM tons of capacity including DeRidder conversion and production synergies Low cost DeRidder mill in good w
Slide 5: PCA & Boise Combined Footprint
PCA & Boise Combined Footprint PCA
Slide 6: Corrugated Products Growth
Corrugated Products Growth 2013 % Change Sept. YTD") Oct. 2013 % Change () Per 50 5 Workday Total PCA 6.7% 6.1% Industry 0.5% 0.0% Cumulative % Change Per 2012 Workday Total 3.0% 3.0% 2.4% 2.4% 1997 1998 1999 2000 2001 2002 2003 2004 — PCA (1) Excludes Boise’s packaging operations 2005 2006 ©2007 20
Slide 7: Containerboard Segment EBITDA Margins
Containerboard Segment EBITDA Margins“) (Three Largest Publicly Traded Producers) PCA 25.0% 20.0% Comp A Comp B 15.0% 10.0% 5.0% 0.0% 2005 «2006 «92007 «2008 )9=2009 Ss 2010 2011S 2012 113 2013 3Q13 ) ‘See Appendix A
Slide 8: White Paper Business
White Paper Business PCA * Third-largest producer of uncoated 2012 freesheet in North America(’) Production _ Key Products (000) Tons _— Facilities * Two of the newer UFS paper machines Communication Papers 535 . Int'l. Falls in North America at International Falls, (75) ° Shutdown 2013 MN, and Jack
Slide 9: White Paper Business Actions and Strategy
White Paper Business Actions and Strategy PCA * Complete 2013 system reconfiguration and realize the business efficiencies and savings * Accelerate cost and quality improvement initiatives which will be enhanced by the integration into PCA * Expand capabilities and product performance for pressure s
Slide 10: Pro Forma Capitalization
Pro Forma Capitalization ($ Millions) PCA PF 9/30/13 Cash and Equivalents (1) $ 195 Existing PCA Debt $ 659 New Debt Issued (Bank & Bonds) $ 2,000 Total Debt $ 2,659 Net Debt $ 2,464 Credit Statistics Investment Grade Credit Rating (S&P: BBB; Moodys: Baa3) Debt/ Adjusted LTM EBITDA®) 2.8x Net Debt/
Slide 11: Strategy
Strategy Operational Excellence Effective Capital Management - Corrugated Products Growth (Internal & Acquisitions) - Cost Reduction (Mills & Box Plants) - DeRidder Conversion Strategic Flexibility - Strong balance sheet - Excellent credit metrics Return Value To Shareholders - Common Stock Dividend
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Slide 13: Appendix A
Appendix A PCA (Sin thousands) "A EBITDA ‘Asset disposaliclosure costs? ‘Medical benefits reserve adjustment ® iment ‘Transaction costs Adjusted Income trom Operations D&A Adjusted EBITDA EBITDA Return % PCA Containerboard Seqment EBITDA Return’ Net Sales oss: Solid Wood Net Sales les ‘Agjusted Inco
Slide 14: Appendix B
PCA Appendix B ‘Twelve Months Ended Sept 30, 2013 As of September 30, 2013 (Sin thousands) PCA Boise Total_ EBIT $451 $104 $555 Cash $397 $107 $504 Depreciation, amortization and depletion 173 174 344 ‘Add: Debt proceeds 2,000 So — Less: Repay Boise debt (e48)” EBITDA $624 $275 $899 Repay PCA term l