Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (9)
En vedette
Similaire à Maximizing Value from MWV's 800,000 Acres of Forestlands
Similaire à Maximizing Value from MWV's 800,000 Acres of Forestlands (20)
Plus de finance33
Plus de finance33 (20)
Dernier
Dernier (20)
Maximizing Value from MWV's 800,000 Acres of Forestlands
- 1. J.P. Morgan Basics & Industrials Conference E. Mark Rajkowski, SVP & Chief Financial Officer June 12, 2007
- 2. Our Performance Goals Deliver sustained above cost of capital returns Grow free cash flow at consistently higher levels Maintain attractive dividend Return excess cash to shareholders 2
- 3. Our Strategy Grow earnings and cash flow from our strong Global Packaging platform High-quality assets w/ broad capabilities Leading positions in growing global markets Strong relationships with large global consumer products companies Substantial opportunities to improve operating performance Maximize the value of our Forestlands 800,000 acres Near- and long-term strategies to generate significant cash flow Returning value to shareholders is the priority Maintain leading positions in Consumer & Office Products and Specialty Chemicals markets Above cost of capital performers Cash generation and share protection are the priorities 3
- 4. Actions Improving Returns Divested Coated Papers business for good value Repurchased shares Repaid debt Reorganized & Consolidated Packaging businesses Fully leverages capabilities and customer relationships New shared services = greater efficiency and scale Acquired Calmar – higher growth primary packaging leader ~20% EBITDA margins Organic growth through IP-based solutions Strong emerging markets platform 4
- 5. Strategy Execution Is Improving Operating Results SCD SCD 5% 7% C&OP C&OP 14% 16% Pack'g Pack'g Other 53% 3% 74% Paper 28% 2003 2006 Total Revenue $7.6 Bil. Total Revenue $6.5 Bil. Y-O-Y Revenue Growth 4% Y-O-Y Revenue Growth 6% ROIC 2.3% ROIC 6.3% Operating Cash Flow $460 Mil. Operating Cash Flow $570 Mil. 5
- 6. Immediate Priorities to Improve Returns Continue PRG Price & Productivity Improvements Supply / Demand dynamic is positive Continued growth in higher value grades Realizing identified permanent operating improvements Generate CSG EBIT Improvement in 2007 Regain share of higher margin specialty packaging Accelerate commercialization of new products Optimize capacity – closed and relocated production from 5 plants Cut costs – eliminated ~700 FTEs; SG&A ~$15 million (run-rate) Leverage Calmar’s Growth Platform Penetrate large, high-quality global customer base Pursue higher growth segments: personal care, pharma, fragrance 6
- 7. Land Management Strategy Overview • Delivers maximum value to shareholders • Generates strong, sustainable cash flows • Requires minimal capital expenditure • Will consider all structural options to drive value at the appropriate time 7
- 8. New Land Management Group – Land Evaluation 600,000 acres that have values well above timber: Significant short- and long-term • value creation opportunities Auctioned Near-term entitlement and • Acreage development generate far greater value longer term Higher Unique ability to achieve certain • Value higher value opportunities Acreage Timber 300,000 acres now being auctioned: Acreage Returning value to shareholders is • the priority 200,000 acres managed as timber: Pursue cash maximization • opportunities – logs & leases Long-term fiber access is the • priority 8
- 9. Executing Land Business Maximizes Value NPV ($MM) - Chosen Path Creates Well Over $1 Billion of Additional NPV - $3,000 $2,500 $1,000MM + $2,250MM + $2,000 $1,250MM midpoint * $1,500 • Continuous Land Segmentation $1,000 • Entitlement & Permits $500 • Small Tract Sales • Development / Real Estate Partnerships $0 Immediate Sales Land Mgmt. Strategy Value Enhancement * Value includes 300,000 acres currently being auctioned 9
- 10. Opportunities Focused on Growth Areas - Percent Change in Population from 2000 to 2005* - Washington D.C. % ∆ in population 2000 to 2005 - Covington Mill Forests– VA • Conservation • Recreation • Emerging Development Charleston Mill Forest –SC • Conservation • Recreation • Emerging Development • Development Charleston, SC * U.S. Census Bureau 10
- 11. South Carolina Growth Projections U.S. Census estimate South Carolina will grow by 1.1 • million people by 2030 South Carolina has the 10th-fastest population growth • rate – greater than the U.S. and South By 2030 SC is expected to require: • • 525,000 new housing units • 40 million sq. ft of new office space • 45 million sq. ft. of new retail space • 13,000 new hotel rooms Source: Office of the Governor of South Carolina (5/23/07) 11
- 12. South Carolina Lands in Charleston’s Growth Path 12 Source: Clemson University, Strom Thurmond Institute
- 13. East Edisto – 72,000 Contiguous Acres NAT U RAL PA TH OF PR OGR ESS 13
- 14. MWV Well-Positioned to Capture Maximum Value • Powerful brand equity in highest value locations Excellent operating reputation Strong governmental and local relationships • Deep knowledge of land – attributes, enhancement opportunities, regulations • Partnership approach to development 14
- 15. Strong Community Endorsement Charleston, SC “MeadWestvaco’s 70,000-acre plan” “This is a roll-up-the-sleeves moment for our region.” - Charleston Mayor Joe Riley “I think their timing is perfect.” - Dorchester County Council Chairman Larry Hargett “They have really done some forward thinking.” - Historic Charleston Foundation Director Kitty Robinson Columbia, SC “MeadWestvaco proposal would blend development, conservation” “It brings certainty to the future.” - SC Nature Conservancy Director Mark Robertson Orangeburg, SC “MeadWestvaco to work with public on land plan” 15
- 16. Near-term Land Strategy Milestones Actions: 2007 & 2008 Status Recruit business leader Complete 300K land sale Report as separate segment Accelerate sales of higher value small tracts East Edisto entitlements 16
- 17. Q2 Outlook Expect solid overall Y-O-Y operating profit growth 17