Plum Creek Timber Company. Inc
Plum Creek Timber — Merger or Acquisition (October 2013)
9 slides from Plum Creek Timber's merger presentation, Oct 28, 2013
Slide 1: Southern Timberland Acquisition
Southern Timberland Acquisition October 28, 2013 Exhibit 99.1
Slide 2: A Value Creating Addition to Our Existing Businesses
Timber: $869 Million • 501,000 acres of core timberlands in current Plum Creek markets • Highly stocked, mature age profile, productive sites • Embedded Higher and Better Use “HBU” opportunities Land: $152 million • Joint Venture investments in ~109,000 acres near Charleston, SC • Capture premium de
Slide 3: Timberlands Complement Existing Plum Creek Ownership
Plum Creek is purchasing MeadWestvaco’s timberlands; approximately 501,000 acres in five states Southern Yellow Pine (AL, GA, SC, VA) Mixed Hardwoods (WV) Purchase Price: $869 million Commingled with our current holdings Attractive, long-term markets SFI certified Timberlands Complement Existing Plu
Slide 4: Favorable Stocking and Age Profile Drive Timberland Value
High Stocking Levels High Component of Mature Forest Favorable Harvest Mix & Strong Cash Flow Favorable Stocking and Age Profile Drive Timberland Value Tons/Acre Pine Acres 21+ years 30% *excludes West Virginia
Slide 5: Acquisition Further Increases Harvest Volume and Value
Significant increase in harvest volume Mature age Valuable product mix Embedded HBU opportunities within acquired timberlands Acquisition Further Increases Harvest Volume and Value Adds nearly 3 million tons per year to current Plum Creek harvest over next decade Near-term harvest and cash flow Acqu
Slide 6: Real Estate Joint Venture Investments: 5% Joint Venture
Real Estate Joint Venture Investments 5% Joint Venture Lands $12.5 million investment 22,000 acres - Active residential and commercial development Profits only, no additional operating or capital contributions 109,000 acres near Charleston, South Carolina Plum Creek will participate in two Real Esta
Slide 7: Real Estate Joint Venture Investments: 50% Joint Venture
Real Estate Joint Venture Investments 2) 50% Joint Venture (JV2) $140 Million investment 87,000 acres - High value rural and development-quality lands Plum Creek manages timber Traditional Plum Creek approach Identify and sell at significant premium to underlying timber value Pursue base level entit
Slide 8: Non-Timber Resources Add to Existing Royalty Stream
Coal Assets Wind Assets Expected annual cash flow of $6 million provides Plum Creek with a 9%+ yield Non-Timber Resources Add to Existing Royalty Stream Expect production to grow over time Majority is metallurgical coal tied to global markets and steel production 101.5 MW operating wind project Pote
Slide 9: Committed to Maintaining Current Investment-Grade Profile
Sources (in millions) Uses (in millions) Committed to Maintaining Current Investment-Grade Profile Gross proceeds from equity $700 Cash to MWV $226 Installment note to MWV Installment note to MWV Total consideration to MWV $1,086 Pay down debt Fees and expenses Total Sources $1,560 Total Uses $1,560
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