International Paper Company · NYSE:IP
International Paper — International Paper Co /New/ — Corporate Update (September 2004)
11 slides from International Paper's corporate update, Sep 21, 2004
Slide 1: Strong Leverage to Improving Prices
Strong Leverage to Improving Prices Price sensitivity of U.S. businesses* Uncoated Paper Corr. Boxes Container- board Bleached Board Coated Paper Lumber Plywood 0.27 0.20 0.17 0.13 0.13 0.08 *Price sensitivities may not translate to improvement in EPS shown due to higher costs, operating problems, l
Slide 2: Average IP Price Realizations 3Q'04 estimates
Average IP Price Realizations 3Q’04 estimates $/ton Change vs. 2Q04 +30 +30 +40 +40 -10 -70 Uncoated Paper Coated Paper Container- board Corr. Boxes Lumber Plywood -100 -75 -50 -25
Slide 3: Current Events: Weldwood divestiture
Current Events Weldwood divestiture Weldwood of Canada Expect close in Fall 2004 IP’s 3Q’04 earnings from continuing operations will exclude Weldwood’s earnings and prior periods will be restated EPS from continuing operations before special items as previously stated Adjustments to restate Weldwood
Slide 4: Current Events: Hurricane Ivan
Current Events Hurricane Ivan Impact of Hurricane Ivan on IP operations Operations in Pensacola, Fla. and Southern Ala. were closed down completely Region remained without power throughout the weekend Facilities impacted include: Paper Mills Pensacola, Fla. Riverdale, Ala. Prattville, Ala. Arizona C
Slide 5: Targeting $1.5 billion of Non Price Improvement
Lower Costs & Create Efficiencies Improve Mix Grow Volumes Targeting $1.5 billion of Non Price Improvement Targeted Segments Market Recovery Segmenting Solutions New Product Manufacturing Excellence Supply Chain Lower S&A/Other $1.6 B $0.7 B ($0.8) B Input Costs $1.5 B Net Non-Price Improvement Targ
Slide 6: Targeting $1.5 billion of Non Price Improvement progress
Targeting $1.5 billion of Non Price Improvement Lower Costs & Create Efficiencies Improve Mix Grow Volumes Targeted Segments Market Recovery Segmenting Solutions New Product Manufacturing Excellence Supply Chain Lower S&A/Other Input Costs …………………………………….. -- -- -- -- On Track -- Modest Progress Beh
Slide 7: Global Growth Strategy: Eastern Europe
Global Growth Strategy Eastern Europe Svetogorsk, Russia Kwidzyn, Poland Turkey Revenue EBITDA $600MM $250MM Paper mills (4) W. Europe Paper mills (3) Packaging plants (4) E. Europe Packaging plants (22)
Slide 8: Global Growth Strategy: Latin America
Global Growth Strategy Latin America Packaging plants (5) San Salvador, El Salvador Bogota, Columbia Santiago, Chile Guacara, Venezuela Santiago, D.R. Paper mills (2) Mogi Guacu, Brazil Inpacel, Brazil Plantations Amapa, Brazil Tres Lagoas, Brazil Wood products plants (2) Revenue EBITDA $640MM $210M
Slide 9: Global Growth Strategy: Asia
Global Growth Strategy Asia Bangkok, Thailand Chengdu, PRC Taipei, Taiwan Tianjin, PRC Packaging plants (10) Wood products plant (2) Guangzhou, PRC Shanghai, PRC Dalian, PRC Fukusaki, Japan Seoul, S. Korea Leshan, PRC Shishou, PRC Revenue EBITDA $290MM $40MM
Slide 10: Making Portfolio Choices: Update on Box USA acquisition
Making Portfolio Choices Update on Box USA acquisition Improves profitability & ROI of industrial packaging Increases integration level - 60+% to 70+% Implementing plan to improve EBITDA from $27 million in 2003 to $80 million on fully integrated basis, including merger benefits Elimination of dupli
Slide 11: Making Portfolio Choices: Update on Box USA acquisition
Making Portfolio Choices Update on Box USA acquisition Activities during first two months of IP ownership Closing Box USA’s headquarters in Northbrook IL in 4Q04. Will capture majority of overhead savings Shutting Box USA’s Memphis corrugated box plant. More to come in 2005 IP will supply Box USA wi
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