International Paper Company · NYSE:IP
International Paper — International Paper Co /New/ — Merger or Acquisition (July 2004)
10 slides from International Paper's merger presentation, Jul 23, 2004
Slide 1: Sale of Weldwood
Sale of Weldwood John V. Faraci Chairman & CEO July 22, 2004
Slide 2: Forward Looking Statements
Forward Looking Statements S tatements on these slides or in this presentation that are not historical are forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including but not limited to, uncertainty as to whether the sale o
Slide 3: Weldwood divestiture
Weldwood divestiture Making Choices – Selling Weldwood IP signed agreement to sell Weldwood of Canada subsidiary to West Fraser Timber Sale price of C$ 1.26 billion (US$ 950 million) for the common equity, subject to certain adjustments Important step in focusing IP on selected segments of paper, pa
Slide 4: Business Profile
Business Profile Making Choices – Selling Weldwood Weldwood headquarters Vancouver, Canada. Operations in British Columbia and Alberta 2 pulp mills with 675,000 tons of market pulp (1 JV) 10 wood products facilities (3 JVs with West Fraser) 7 lumber mills with 1.3 million board feet 2 plywood mills
Slide 5: Deal Summary
Making Choices – Selling Weldwood Deal Summary* Transaction Value** >US$ 1 billion Total Cash from Transaction >US$ 950 million Est. 3Q04 After Tax Loss US$ 780 million Book Write-off US$ (425) Tax Impact US$ (355) Expected to be dilutive of 3Q04 forecast earnings by $0.05 – $0.10 per share Neutral
Slide 6: Weldwood EBITDA history (Indexed)
Making Choices – Selling Weldwood Weldwood EBITDA history (Indexed) 2004 YTD Annualized Trend-Line EBITDA at 100 Index Selling at attractive multiple of trendline earnings 2004 likely a peak year
Slide 7: IP strategy
Making Choices – Selling Weldwood IP strategy Build strong businesses Focus on three core businesses Grow outside North America Take advantage of cycle Improve financial flexibility
Slide 8: EBITDA Multiple Price Strengthening operations/improving portfolio
Making Choices – Selling Weldwood EBITDA Multiple Price Strengthening operations/improving portfolio Improving operations – net costs improved $50+ million YTD Increasing sales/employee - up 15% since 2001 Reducing energy - U.S. mill energy consumption/ton down 13% since 2001 Making current IP busin
Slide 9: International Paper
INTERNATIONAL (B) PAPER
Slide 10: International Paper
INTERNATIONAL (ZB) PAPER
International Paper Co /New/ — Merger or Acquisition (July 2004) on 6ix