Slide 1: Shareholder Presentation 2009
KEWEENAW LAND ASSOCIATION, LIMITED SHAREHOLDER PRESENTATION‐2009 1
Slide 2: Keweenaw Continues to Perform Well in a Difficult Economy
Keweenaw Continues to Perform Well in a Difficult Economy • Excellent stock price performance over the last five years: – Total return on price appreciation of 18.8%, compounded annually 300 250 Keweenaw Land Association, Limited Index 12-31-03 = 100 200 150 S&P 500 Forest Products Index 100 50 S&P
Slide 3: Keweenaw Continued its Strong Financial Performance in 2008
Keweenaw Continued its Strong Financial Performance in 2008 2008 2007 2006 2005 2004 Receipts* $11,238 $9,063 $9,845 $10,718 $9,079 Net Income 1,363 243 861 1,430 924 after Tax* Earnings per $2.11 $0.38 $1.34 $2.23 $1.44 Share Return on 8.3% 1.5% 5.9% 11.1% 7.5% Capital * Values in rounded thousands
Slide 4: Key Accomplishments in 2008
Key Accomplishments in 2008 • Near record log production • Gross receipts in excess of $11.2 million • $1.4 million in net income, 461% over 2007 • Entered mining lease with Orvana Minerals Corp. for potential development of a copper mine in the Western Syncline minerals deposit. • Elected to treat
Slide 5: Key Long-Term Accomplishments of the Keweenaw Board
Key Long‐Term Accomplishments of the Keweenaw Board • Established a highly successful log marketing program to maximize profits by optimizing product mix and diversifying the customer base. • Created a real estate development division to maximize profit on properties with higher and better use than
Slide 6: Good Governance Practices
Good Governance Practices • Five of six Board members are independent‐not employed by the company. Unpaid except for board fees. • Beneficial ownership of Keweenaw shares by directors and officers is reported in the 2009 Proxy Statement. • All corporate officers, except the President, are employees,
Slide 7: Good Governance Practices (Cont)
Good Governance Practices (Cont) • Annual and quarterly shareholder reports give in‐depth financial and operations disclosure to shareholders, in print and on the company’s website, www.keweenaw.com. • Contact with shareholder Ronald S. Gutstein: – Opportunity given at the 2008 Annual Meeting for Mr
Slide 8: The Keweenaw Board Values Shareholders' Input
The Keweenaw Board Values Shareholders’ Input • In 1999 after a grossly undervalued takeover attempt, Keweenaw reacted to the shareholders desire for some minimum protections to increase their “bargaining power and leverage” in any merger or sale of assets. Article IX of the company’s bylaws and Art
Slide 9: Mr. Gutstein's Suggestions Considered
Mr. Gutstein’s Suggestions Considered • Wind Power Generation – None of the Company’s land surface ownership is located in areas that experience the prevailing winds necessary for consistent wind‐power generation. – Preliminary findings of the Michigan Wind Energy Resource Zone Board indicate Upper
Slide 10: Mr. Gutstein's Suggestions Considered (Cont.)
Mr. Gutstein’s Suggestions Considered(Cont.) • Register Company’s Shares under SEC – Given the Company’s size, it is uneconomical for it to register with SEC. Mr. Gutstein, himself, admits lack of any evidence indicating any benefits of such a move. • Initiate a Stock Buyback Policy and Raise Capita
Slide 11: Mr. Gutstein's Suggestions Undermine Shareholder Value
Mr. Gutstein’s Suggestions to Change Company’s Strategic Direction Undermine Shareholder Value • Dissidents seek to change the very character of what Keweenaw Land Association is all about, a timberland company, a significant diversifying investment objective of many Keweenaw shareholders. • Disside
Slide 12: Mr. Gutstein's Attempt to Take Credit for Board Accomplishments
Mr. Gutstein’s Attempt to Take Credit for Bona Fide Accomplishments of the Keweenaw Board are Disingenuous • Keweenaw’s first contact with the current Orvana V.P for Corporate Development occurred in February 2007, a full year before Mr. Gutstein’s 2008 proxy contest. • The Company’s first formal me
Slide 13: Essex Street Associates - Questions?
Essex Street Associates‐Questions? • Essex Street Associates is an assumed name of a services company, one of whose functions is to oversee a large number of trusts, including those of the many descendents of Mr. Frederick Ayer. It owns no Keweenaw stock outright and performs an administrative funct
Slide 14: Messrs. Gutstein & Frisoli Would Not Be Appropriate Board Members
Messrs. Gutstein & Frisoli Would Not Be Appropriate Board Members • Keweenaw is one of the few “pure timber” investment opportunities in America. Many shareholders own Keweenaw to diversify their portfolios in hard timberland assets, managed sustainably. – Mr. Gutstein does not share this vision. In
Slide 15: Keweenaw Directors for Re-election are Very Qualified
Keweenaw Directors for Re‐election are Very Qualified • Mr. James Totten has significant experience and technical skills in operations management, manufacturing systems, investment decision analysis, and organizational leadership. He has advanced degrees in Systems Management from the University of