john v. faracis1.q4cdn.com/597881801/files/doc_presentations/2005/ip_120105.pdf · 10th annual...

10th Annual Citigroup Global Paper and Forest Products Conference

December 1, 2005

10th Annual Citigroup Global Paper and Forest Products Conference

December 1, 2005

John V. FaraciChairman & CEOJohn V. FaraciChairman & CEO

22

These slides contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to (i) market and economic factors, including changes in the cost or availability of raw materials and energy, competition, demand and pricing for the Company's products, the level of housing starts, changes in international economic conditions, specifically in Brazil, Russia, Poland and China, changes in currency exchange rates, changes in credit ratings issued by nationally recognized statistical rating organizations, pension and healthcare costs and natural disasters, such as hurricanes, (ii) the Company's transformation plan, including the ability to accomplish the transformation plan, the impact of the plan on the Company's relationship with its employees, customers and vendors and the ability to realize anticipated profit improvement from the plan, and (iii) results of legal proceedings and compliance costs, including unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations and the uncertainty of the costs and other effects of pending litigation. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

Forward-Looking StatementsForward-Looking Statements

33

During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is available on the company’s website at www.internationalpaper.com under Investors.

Statements Relating toNon-GAAP Financial MeasuresStatements Relating toNon-GAAP Financial Measures

44

Significantly improve profitability

Strengthen the balance sheet

Return value to shareholders

Significantly improve profitability

Strengthen the balance sheet

Return value to shareholders

Focused Global Paper and Packaging CompanyFocused Global Paper and Packaging CompanyFocused Global Paper and Packaging Company

Transformation PlanTransformation Plan

55

ImproveKey PlatformBusinesses

DivestAssets

Use ofProceeds

TransformingPlan

FocusPortfolio onKey PlatformBusinesses


Key Components of PlanKey Components of PlanFocus portfolio on key platform businessesFocus portfolio on key platform businesses

Uncoated PapersPackagingUncoated PapersUncoated PapersPackagingPackaging

66

Uncoated PapersLeader in uncoated paper

Uncoated paper mill$5.8 B revenue14 paper mills

– 6.6 MM tpy

2004 Results*Brazil 1 mill

500,000 tpy

Brazil 1 mill

500,000 tpy

U.S. 8 mills

4.8 MM tpy

U.S. 8 mills

4.8 MM tpy

W. Europe3 mills

600,000 tpy

W. Europe3 mills

600,000 tpy

E. Europe2 mills

700,000 tpy

E. Europe2 mills

700,000 tpy

* Includes Market Pulp revenues ($660MM) but excludes Fine Papers ($165MM)

77

Uncoated Free Sheet

83%

Bristols17%

U.S. Uncoated PapersU.S. Uncoated PapersShipments by category – Sept. 2005YTDShipments by category – Sept. 2005YTD

Total Uncoated Papers Uncoated Free Sheet

3.1 million tons shipped 2.6 million tons shipped

Envelope21%

Offset16%

Forms14%Other7%

Imaging42%

88

0

0.5

1

1.5

2

2.5

3

Total UFS ImagingPapers

EnvelopePapers

Although U.S. demand for uncoated free sheet is projected to be relatively flat, opportunities exist for excelling in this business

– Imaging paper demand is forecasted to grow over 2% per annum

– Envelope paper demand should grow faster than the total uncoated free sheet category

Sources: RISI

U.S. Demand by Grade2003 – 2009 CAGR

U.S. Uncoated PapersU.S. Uncoated PapersMarket opportunitiesMarket opportunities

%

99

U.S. Uncoated PapersU.S. Uncoated Papers

VIP1 – High Whiteness Papers− Moves IP’s U.S. uncoated

papers to global standard & eliminates perceived quality advantage of imports

VIP2 – Enhanced Performance − More efficient way of making

paper & improves commercial printing performance

VIP3 – Improved Bulk − Direct mail applications

Product innovation – VIPProduct innovation – VIP

1010

U.S. Uncoated PapersU.S. Uncoated Papers

Fewer, bigger, better facilities – all low-cost– Investing in best performing assets

– Transforming the Pensacola, Fla. mill from a 3rd quartile uncoated free sheet mill to a 1st quartile lightweight linerboard mill

– Closing high-cost uncoated paper capacity

Asset optimizationAsset optimization

1111

Investing in Eastover, SC uncoated paper millInvesting in Eastover, SC uncoated paper millU.S. Uncoated PapersU.S. Uncoated Papers

The Eastover, SC mill is IP’s largest and most modern uncoated paper mill

The mill has a first quartile cost position

Rebuilding PM1 in 4Q’05 to improve sheet quality and reduce manufacturing costs ($125 million project)

Focusing the rebuilt machine on value-added grades such as envelope and cut-size papers

1212

Low-cost capacity in E. Europe and L. AmericaLow-cost capacity in E. Europe and L. AmericaGlobal Uncoated PapersGlobal Uncoated Papers

700,000 tpy of uncoated paper capacity at our Kwidzyn, Poland and Svetogorsk, Russia mills

Eastern Europe

Latin America500,000 tpy of uncoated paper capacity at our Mogi Guacu, Brazil mill

Svetogorsk Mill

Mogi Guacu Mill

1313

Uncoated PapersUncoated Papers

Uncoated papers is a key platform businessIP is the largest, best positioned uncoated papers global producer with – Superior return on sales in each region– Strong positions with global customers– Innovative, proprietary technology to differentiate

products– Low-cost positions in U.S., Eastern Europe and Brazil– Superior access to markets

SummarySummary

1414

Prattville, AL

U.S. Industrial Packaging U.S. Industrial Packaging Strong businesses with integrated modelStrong businesses with integrated model

Corrugated box plantContainerboard mill

Terra Haute, IN

Groveton, NH

Savannah, GA

Mansfield, LA

Pineville, LA

Vicksburg, MS

IP has a low-cost containerboard mill system and a growing integrated corrugated box business in the U.S.

IP has a lowIP has a low--cost containerboard mill system and a cost containerboard mill system and a growing integrated corrugated box business in the U.S.growing integrated corrugated box business in the U.S.

2004 Results*

$3.3 B revenue70 box plants7 board mills

– 4.5 MM tpy* Excludes Specialty Papers revenues ($680MM)

1515

U.S. Industrial PackagingU.S. Industrial Packaging

With no new containerboard capacity announced for North America and box shipments forecasted to grow at about 2% per annum through 2007, opportunities exist for excelling in this business– Reduce manufacturing and supply chain costs

– Increase integration level to maximize the profitability of our containerboard system

– Convert Pensacola, Fla. mill to lightweight linerboard, broadening our product offering

– Improve positioning in profitable corrugated box segments

Market opportunitiesMarket opportunities

Source: FBA

1616

Index (1997=100)% Non-Durables Box ShipmentsNon-Durables Industrial Production Index (Weighted %)

Non-Durable box shipments heavily driven byFood & Beverage and Paper & Distribution

NonNon--Durable box shipments heavily driven byDurable box shipments heavily driven byFood & Beverage and Paper & DistributionFood & Beverage and Paper & Distribution

Source: FBA, Federal Reserve, IP Analysis

% of Total Box Shipments

Durables

Other Non-Durables


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

18%

32%

51%

OtherNon-Durables

26%

41%

Plastics & Rubber

Chemical

Paper & Distribution

Food, Beverage & Tobacco

Apparel & Leather

Non-durable box shipmentsNon-durable box shipments

83%67%

TextilePetroleum

50%

1717

International ContainerInternational ContainerStrong business with non-integrated modelStrong business with non-integrated model

Corrugated box plantRecycled board mill

IP’s international box business has 36 plants outside N. America, mostly in W. Europe

IP’s international box business has 36 plants IP’s international box business has 36 plants outside N. America, mostly in W. Europe outside N. America, mostly in W. Europe

Etienne, France

Edirne, Turkey

Kenitra, Morocco

Latin America1 box plant

Latin America1 box plant

Europe / N. Africa29 box plants

3 recycled board mills

Europe / N. Africa29 box plants

3 recycled board mills

Asia6 box plants

Asia6 box plants

$920 MM revenue36 box plants3 recycled board mills

2004 Results

1818

International ContainerInternational ContainerAcquired CMCP in MoroccoAcquired CMCP in Morocco

Source: Eurostat, FAOSTAT, CMPE, Societe Generale

Fruit & Vegetable Value into Europe

Euro MM

MoroccoTurkey Israel Egypt Tunisia Other

1,000

750

500

250

0

Purchased for $120 MM– ($80 MM plus assumed

$40 MM debt)IP equity position of 65%4 box plants and 1 recycled board millStrengthens IP’s position in the fruit and vegetable segmentProjected ROI of 15-20%

1919

Consumer Packaging Consumer Packaging Global customers & differentiated products Global customers & differentiated products

Svetogorsk, Russia

Kwidzyn, Poland

Riegelwood, NC

Texarkana, TX

Augusta, GA

Converting plantCoated board mill

IP is the top global producer of coated board and positioned to serve packaging customers worldwide

IP is the top global producer of coated board and IP is the top global producer of coated board and positioned to serve packaging customers worldwide positioned to serve packaging customers worldwide

North America3 coated board

mills1.4 MM tpy

North America3 coated board

mills1.4 MM tpy

Eastern Europe**2 coated board

machines240,000 tpy

Eastern Europe**2 coated board

machines240,000 tpy

* Excludes Beverage Packaging plants and business revenues ($600MM). ** E. European coated board revenues included in Uncoated Papers segment.

2004 Results*

$1.7 B revenue27 converting plants5 mills producing coated board

– 1.6 MM tpy

2020

Consumer PackagingConsumer Packaging

World demand for coated board is forecasted to grow at 3% p.a. through 2010– Folding carton

– Coated bristols

– Aseptic packaging board

Targeting growth in home entertainment packaging in North America and Europe

Expanding tobacco packaging business globally

Market opportunities Market opportunities

Source: Jaakko Poyry

2121

PackagingPackaging

Industrial packaging has an integrated low-cost mill and corrugated box plant system in the U.S.– Growing corrugated box business outside North

America

Consumer packaging serves growing global customers with coated board and valued-added packaging

Both businesses can earn cost of capital returns over the cycle

Summary Summary

2222

xpedxxpedx

xpedx is the largest N. American merchant and integrated with IP’s paper and packaging businesses– 16% of IP’s uncoated paper sales are through xpedx– 25% of xpedx’s sales are IP products

North American merchant distributionNorth American merchant distribution

PrintingPapers60%

PrintingPapers60%

Packaging20%

Packaging20%

FacilitySupplies

15%

Graphics5%

2004 sales mix by category xpedx locations

2323



DivestAssets

Use ofProceeds

TransformingPlan


Key Components of PlanKey Components of PlanImprove key platform businessesImprove key platform businesses

2424

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

9M'04 Price VolumeCost/Mix RawMaterial

LandSales

RealEstate

Corp. Interest Tax Other 9M'05

$.02

EPS $ / Share

$.84

($.29) ($.57)$.70

$.96$.02

$.26

($.17)($.04)$.06

$.13

Wood Costs ($.21)Energy ($.20) Caustic Soda ($.11) Other ($.05)

Paper $.49 Packaging $.25 Other ($.04)

2004 Tax rate 30% 2005 Tax rate 28%

Downtime ($.28) Volume ($.01)

Pension ($.14) Supply Chain ($.07) Other $.04

EPS from cont. ops before special itemsEPS from cont. ops before special items9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results

2525

Lower costs to manufacture

50%

Streamliningthe organization

20%

Higher sales volumes/mix

30%

Targeting $400 million per year or $1.2 billion of cumulative profit improvement over three yearsTargeting $400 million per year or $1.2 billion of Targeting $400 million per year or $1.2 billion of cumulative profit improvement over three yearscumulative profit improvement over three years

Profit Improvement InitiativesProfit Improvement Initiatives

2626

Taking $200 million per year of costs out of a $20 billion cost base is achievable

Taking $200 million per year of costs out of a $20 billion cost base is achievable

$200 mm $200 mm

Annual Profit Improvement Target

Total Cost Base$20 billion

Costs to Manufacture

Costs to Manufacture

SupplyChain Interest

& D&A

Buy forResale Costs to

SupportCostReduction

Profit Improvement InitiativesProfit Improvement InitiativesLower costs to manufactureLower costs to manufacture

2727

Energy conservation and substitution remain key imperatives for the enterprise− Fuel cost reduction projects have >50% ROI− Targeting $50-75 million in spending on energy and chemical reduction projects for 2006− Natural gas consumption down 45% at U.S. mills since 2002

30

54

4540

$9.50

$3.45

$5.80 $6.47

0

20

40

60

80

2002 2003 2004 2005 Forecast0

2

4

6

8

10Trillion BTUs $/MMBTU

Natural Gas Consumed Natural Gas Cost per unit

Costs to ManufactureCosts to ManufactureReducing purchased energy costsReducing purchased energy costs

2828

70

75

80

85

2001 2002 2003 2004 2005 YTD WorldClass

77%78% 79%

81%82%

OEE %

* OEE = Acceptance x Availability x Speed Efficiency in U.S. primary mills

Costs to ManufactureCosts to ManufactureImproving overall equipment efficiencyImproving overall equipment efficiency

Improving overall equipment efficiency of U.S. primary mills each year since 2001− Each percentage point improvement in overall equipment efficiency equates to $50 million per year in cost reduction− Targeting world class benchmark for all IP mills

85%

2929

Logistics improvement initiativeLogistics improvement initiativeSupply ChainSupply Chain

IP’s containerboard mill system is using a centralized transportation effort to lower logistics costs– Tons shipped October 2005 YTD = October 2004 YTD– 10% or 4 million fewer miles shipped October 2005 YTD– Proactive railcar management reduced loaded railcars by 1,000

cars per week and demurrage costs by 50% since April 2005

0

25

50

75

100

Tons Shipped Miles Shipped Demurrage CostsLoaded Railcars

Oct. 2004 YTD Oct. 2005 YTD April 2005 November 2005

%

3030

Regional distribution center initiativeRegional distribution center initiativeSupply ChainSupply Chain

2003

Box PlantWarehouses

80Paper & BoardWarehouses

157

0

50

100

150

200

2003 2005 Target

157

102

60

Number of Paper & Board Warehouses

Regional distribution centers will reduce warehousing and transportation costs and improve customer service– Significantly reduce number of IP warehouses in the U.S.– Consolidate IP products in central locations

Warehouses by Business

3131

$120 mm

Adding $120 million per year from higher sales volumes and improved mix is achievable

Adding $120 million per year from higher Adding $120 million per year from higher sales volumes and improved mix is achievablesales volumes and improved mix is achievable

Volume assumptions:– U.S. uncoated paper flat– Eastern European and Latin

American uncoated paper growth

– Global packaging and coated board growth

– xpedx volume growth

Volume assumptions:– U.S. uncoated paper flat– Eastern European and Latin

American uncoated paper growth

– Global packaging and coated board growth

– xpedx volume growth

Profit Improvement InitiativesProfit Improvement InitiativesHigher sales volumes / mixHigher sales volumes / mix

3232

Taking $80 million per year of overhead costs out of a $3.1 billion cost base will happen

Taking $80 million per year of overhead costs Taking $80 million per year of overhead costs out of a $3.1 billion cost base will happenout of a $3.1 billion cost base will happen

$80 mm

OngoingBusiness

S&A

OngoingBusiness

S&A

Annual Profit Improvement Target

Total Overhead Costs$3.1 Billion

OngoingShared Costs

OngoingShared Costs

DivestedBusiness

S&A

S&AReduction

Profit Improvement InitiativesProfit Improvement InitiativesStreamlining the organizationStreamlining the organization

3333

Reduced overhead costs by $700 million 2000 - 2004Reduced overhead costs by $700 million 2000 Reduced overhead costs by $700 million 2000 -- 20042004

0

1

2

3

4

2000

3.8

3.1

$ Billions

2004

Streamlining the OrganizationStreamlining the OrganizationReducing overhead costsReducing overhead costs

S&A Manufacturing Administrative

3434


DivestAssetsDivestAssets

Use ofProceeds

TransformingPlan

Key Components of PlanKey Components of PlanDivest assetsDivest assets


3535

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2005 2006 2007

CHH

Arizona Chemical

Selected forestlands and related wood products business

Beverage Packaging (incl. Pine Bluff mill)

Kraft Papers (incl. Roanoke Rapids mill)

Coated & SC Papers (incl. Inpacel mill)

Expect to complete Expect to complete divestments in one year divestments in one year

except for forest products except for forest products assets which could take assets which could take

longer to completelonger to complete

Divestiture TimelineDivestiture Timeline

3636

Carter HoltHarvey

Coated & SC

Forestlands

Beverage Packaging

Wood Products

ArizonaChemical

Kraft Paper

Consider StrategicOptions

Distribute SalesBook

ReceiveBids

SalesAgreementAnnounced

Closeon

Sale

Divestiture Program Divestiture Program Status as of Dec. 1, 2005Status as of Dec. 1, 2005

- Phase completed

3737


DivestAssets

Use ofProceeds

Use ofProceeds

TransformingPlan

Key Components of PlanKey Components of PlanUse of proceedsUse of proceeds


3838

Use of ProceedsUse of Proceeds

Use of after-tax proceeds ($8-10 billion)– Debt repayment

– Return value to shareholders

– Selective reinvestment

3939

0

4

8

12

16

20

2000June

18

12

$ BillionsReduced gross debt by over $6 billion since June 2000

Reduced gross debt by over Reduced gross debt by over $6 billion since June 2000 $6 billion since June 2000

June 2000 includes Carter Holt Harvey debt on IP’s balance sheet

Debt RepaymentDebt Repayment

2005September

Solidify investment grade credit rating Solidify investment grade credit rating

4040

Return Value to ShareholdersReturn Value to Shareholders

Portion of after-tax proceeds will be used to return value to shareholders

Potential options include:• Share repurchases

• Increase regular dividend (if sustainable)

• Special dividend

4141

Selective Reinvestment Selective Reinvestment

Latin America– Build out low cost, good return uncoated papers / pulp

platform in Brazil

China– Coated board / packaging & paper opportunities

Eastern Europe / Russia– Further expansion at Svetogorsk– Paper and packaging options in Russia

Europe (East & Mediterranean) – Bolt-on corrugated opportunities

4242

Earnings Improvement Summary*Earnings Improvement Summary*

Base Case 2005

ImproveExisting

Businesses

Earnings fromDivested

Businesses

Earnings fromSelect

Reinvestment

Interest Savings

Value toShareholders

Future Case2008

EPS

* Component symbols used for illustrative purposes only, proportions not indicative of actual EPS impact.

Execution of the transformation strategywill improve IP’s earnings in four ways

Execution of the transformation strategyExecution of the transformation strategywill improve IP’s earnings in four wayswill improve IP’s earnings in four ways

4343

SummarySummary

Value was not created by the transformation announcement alone – value will be created

by successfully executing the strategy

Value was not created by the transformation Value was not created by the transformation announcement alone announcement alone –– value will be created value will be created

by successfully executing the strategyby successfully executing the strategy

The ultimate measure of the success of the transformation will be increased earnings power

and better returns for the entire company

The ultimate measure of the success of the The ultimate measure of the success of the transformation will be increased earnings power transformation will be increased earnings power

and better returns for the entire company and better returns for the entire company

Balancing the length of time required to divest assets with maximizing shareholder value

Balancing the length of time required to divest Balancing the length of time required to divest assets with maximizing shareholder value assets with maximizing shareholder value

This is not a bigger is better strategy – not driven to be a certain size company

This is not a bigger is better strategy This is not a bigger is better strategy –– not not driven to be a certain size companydriven to be a certain size company

4545

Appendix

4646

Transformation OverviewTransformation Overview

Focus on Key Platform Businesses

Uncoated Papers, Global Packaging, Global

Focus on Key Platform Businesses

Uncoated Papers, Global Packaging, Global

Improve ProfitabilityOngoing improvement initiativesReduce cost baseRealign U.S. mills

Improve ProfitabilityOngoing improvement initiativesReduce cost baseRealign U.S. mills

Evaluate/Divest Selected Assets50.5% stake in Carter Holt Harvey(Sold Sept. 2005)Coated PapersBeverage Pkg. Kraft PapersArizona Chemical U.S. Forestlands –(selected)Wood Products

Evaluate/Divest Selected Assets50.5% stake in Carter Holt Harvey(Sold Sept. 2005)Coated PapersBeverage Pkg. Kraft PapersArizona Chemical U.S. Forestlands –(selected)Wood Products

Use Divestment Proceeds and Free

Cash Flow to Improve Business

Improve balance sheet – repay debtReturn value to shareownersConsider selective investments in best assets / new opportunities

Use Divestment Proceeds and Free

Cash Flow to Improve Business

Improve balance sheet – repay debtReturn value to shareownersConsider selective investments in best assets / new opportunities

4747

9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results

15.115.111.611.6Gross Debt ($ billion)Gross Debt ($ billion)

(204)(204)1,1771,177Net Earnings (Loss) as Reported ($ million)Net Earnings (Loss) as Reported ($ million)

(0.42)(0.42)2.362.36Diluted EPS ($)Diluted EPS ($)

25.125.125.025.0Average Capital Employed ($ billion)Average Capital Employed ($ billion)

488.2488.2507.5507.5Average Shares Outstanding (million)Average Shares Outstanding (million)

0.840.840.960.96Diluted EPS From Continuing Operations and Diluted EPS From Continuing Operations and Before Special Items ($)Before Special Items ($)

413413466466Earnings From Continuing Operations and Before Earnings From Continuing Operations and Before Special Items ($ million)Special Items ($ million)

17.317.318.018.0Sales ($ billion)Sales ($ billion)

9 Months EndedSeptember 302005 2004

Selected financialsSelected financials

4848

9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results

(175)

(150)

(125)

(100)

(75)

(50)

(25)

0

(150)

(125)

(100)

(75)

(50)

(25)

0

CausticSoda

Energy Other

EBIT ($MM)

(130)

(146)

(40)

(71)

WoodFiber

Container-board

BleachedBoard

EBIT ($MM)

(50)

(135)

(6)

UncoatedPapers

$387 million or $0.57/shareimpact in 9M’05 versus 9M’04 $387 million or $0.57/share$387 million or $0.57/share

impact in 9M’05 versus 9M’04 impact in 9M’05 versus 9M’04 $191 million or $0.28/share

impact in 9M’05 versus 9M’04 $191 million or $0.28/share$191 million or $0.28/share

impact in 9M’05 versus 9M’04 impact in 9M’05 versus 9M’04

EBIT impact from input costs & LOO downtimeEBIT impact from input costs & LOO downtime

Input Costs Lack-of-Order Downtime

4949

Source: FBA, U.S. Department of Commerce, IP Analysis

2004 GDP: $10.8 Trillion of 2000 Dollars

2004 Box Shipments:$23.2 Billion Dollars

Value $Volume


GoodsGoodsServices

Investments

Mining / Utilities

Durables

Non-Durables

GDP Industrial Production Box Shipment

22%

$ 6 Trillion$ 3.8 Trillion$ 3.8 Trillion

$1Trillion

43%

34%82%

18%

Source of corrugated box demandSource of corrugated box demand

Over 80% of box demand comes from non-durablesOver 80% of box demand comes from nonOver 80% of box demand comes from non--durablesdurables

5050

Source: FBA, Federal Reserve, IP Analysis

Box shipments relate closely with non-durables manufacturingBox shipments relate closely with nonBox shipments relate closely with non--durables manufacturingdurables manufacturing


Index (1997 = 100)

405060708090

100110120130140150

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Box Shipments Non-Durables Durables

Industrial production & box shipmentsIndustrial production & box shipments

5151

U.S. Forestlands U.S. Forestlands

Total IP Forestlands6.8 MM acres

Total IP Forestlands6.8 MM acres

Core Holdings5.3 MM acres

Core Holdings5.3 MM acres

Southeast Timber1.1 MM acres

Southeast Timber1.1 MM acres

Long-Term Leases0.4 MM acres

Long-Term Leases0.4 MM acres

IP acreage included in aconsolidated subsidiary

selling IP forestlands on aretail basis in the U.S. South

IP acreage included in estimated after-tax

proceeds from selected assets valuation of $8-10B

Selected acreage in proceeds estimatesSelected acreage in proceeds estimates

As part of the transformation plan, IP is pursuing As part of the transformation plan, IP is pursuing strategic options for part or all of its U.S. forestlands strategic options for part or all of its U.S. forestlands

john v. faracis1.q4cdn.com/597881801/files/doc_presentations/2005/ip_120105.pdf · 10th annual...

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