Fourth Quarter and Full Year 2010 Review February 3, 2011 Fourth Quarter and Full Year 2010 Review February 3, 2011 John V. Faraci Chairman & Chief Executive Officer Tim S. Nicholls Senior Vice President & Chief Financial Officer Exhibit 99.2 |
2 Forward-Looking Statements Forward-Looking Statements These slides and statements made during this presentation 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) increases in interest rates; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products; (iii) global economic conditions and political changes, including but not limited to the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation and changes in pension and health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; and (v) whether we experience a material disruption at one of our manufacturing facilities and risks inherent in conducting business through a joint venture. 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. |
3 Statements Relating to Non-GAAP Financial Measures Statements Relating to Non-GAAP Financial Measures 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 internationalpaper.com under Investors. |
4 Fourth Quarter 2010 Solid Finish in Transition Year Fourth Quarter 2010 Solid Finish in Transition Year Strong Earnings Strong Free Cash Flow Incremental price realization offset seasonal volume declines More Maintenance Outages Increased Input Costs Strong Ilim JV Contribution Earnings from continuing operations before special items |
5 4Q10 Operating Business EPS Strongest 4Q in more than a decade 4Q10 Operating Business EPS Strongest 4Q in more than a decade Earnings from continuing operations before special items as reported at the time |
6 Strong Full-Year 2010 Results Strong Full-Year 2010 Results $3.3 B EBITDA $1.7 B Free Cash Flow 1 110 BPS EBITDA Margin Expansion 250 BPS ROI Improvement Significant Debt Reduction Progress Pension Funding Gap down $1.3 B Net Debt down $550 MM Annual Dividend Rate Increase From $0.10 to $0.75 Earnings from continuing operations before special items 1 See slide #34 for a reconciliation of free cash flows |
7 Strong Full-Year 2010 Results Strong Full-Year 2010 Results 1 See slide #34 for a reconciliation of free cash flows 2 Earnings from continuing operations before special items $ Billion 2009 2010 Sales $23.4 $25.2 Free Cash Flow 1 $2.2 $1.7 Year-End Debt $9.0 $8.7 Cash Balance $1.9 $2.1 EBITDA 2 |
8 2010 Revenue $1.8 Billion Increase 2010 Revenue $1.8 Billion Increase 1 Reflects 100% of Ilim’s revenues 2010 vs. 2009 Revenue Growth U.S. 6% Non-U.S. 13% Ilim Joint Venture 33% Non-U.S., Inc. Ilim 1 18% |
9 Earnings before special items 2010 vs. 2009 EPS 2010 vs. 2009 EPS Earnings from continuing operations before special items |
10 Step-Change Improvement in Free Cash Flow Step-Change Improvement in Free Cash Flow 2000 – 2004 Average $0.9 Billion 2008 – 2010 Average $1.9 Billion Transformation Free cash flow, based on data in the 10-K for each year at the time of filing. See slide #34 for a reconciliation of free cash flows |
11 Transformation Enabling Improved Returns Recovering from Global Recession Transformation Enabling Improved Returns Recovering from Global Recession Cost of Capital Return on Investment |
12 4Q10 Financial Snapshot Strong EBITDA & Free Cash Flow 4Q10 Financial Snapshot Strong EBITDA & Free Cash Flow 4Q09 3Q10 4Q10 Sales ($B) $6.0 $6.7 $6.5 EBITDA 1 ($MM) $669 $1,061 $872 EBITDA Margin 11% 16% 13% Free Cash Flow 2 ($MM) $530 $753 $601 Debt ($B) $9.0 $8.7 $8.7 Cash Balance ($B) $1.9 $1.4 $2.1 1 Earnings from continuing operations before special items 2 4Q09 excludes cash received from alternative fuel credits of $388 MM; See slide #34 for a reconciliation of 3Q10 and 4Q10 free cash flows |
13 Earnings before special items 4Q10 vs. 3Q10 EPS 4Q10 vs. 3Q10 EPS Earnings before special items |
14 Global Input Costs vs. 3Q10 $22 MM Unfavorable, or $0.03/Share Global Input Costs vs. 3Q10 $22 MM Unfavorable, or $0.03/Share By Business By Input Type |
15 Industrial Packaging Earnings 4Q10 vs. 3Q10 Industrial Packaging Earnings 4Q10 vs. 3Q10 Earnings before special items |
16 N.A. Industrial Packaging Relative EBITDA Margins N.A. Industrial Packaging Relative EBITDA Margins IP EBITDA margins based on North American Industrial Packaging operating profit before special items. Competitor EBITDA margin estimates obtained from public filings and IP analysis Excludes revenue from trade volumes 4Q10 Sales $2.0 B $0.6 B $1.6 B |
17 N.A. Industrial Packaging Relative EBIT N.A. Industrial Packaging Relative EBIT Operating profit before special items. Operating Profit up 13% Operating Profit up 28% |
18 Printing Papers Earnings 4Q10 vs. 3Q10 Printing Papers Earnings 4Q10 vs. 3Q10 Earnings before special items |
19 Printing Papers EBITDA Margins Strong Recovery in 2010 in all Regions Printing Papers EBITDA Margins Strong Recovery in 2010 in all Regions 2009 Margin 19% 15% (6%) 24% |
20 Consumer Packaging Earnings 4Q10 vs. 3Q10 Consumer Packaging Earnings 4Q10 vs. 3Q10 Earnings before special items |
21 U.S. Coated Paperboard EBITDA Margins Now similar to UFS & Containerboard Margins U.S. Coated Paperboard EBITDA Margins Now similar to UFS & Containerboard Margins |
22 $ Million 4Q09 3Q10 4Q10 Sales $1,675 $1,755 $1,770 Earnings $31 $22 $9 xpedx 4Q10 vs. 3Q10 xpedx 4Q10 vs. 3Q10 2010 EBIT increased more than 40% vs. 2009 Average daily sales rates increased in all segments 4Q10 results include initial investments to improve results, including charges to exit specific retail and printing equipment segments Plans under development to significantly improve operating earnings Daily Sales Change vs. 3Q10 Printing 2.8% Packaging 5.8% Facility Supplies 6.0% Earnings before special items |
23 $ Million 4Q09 3Q10 4Q10 Sales (100%) $350 $465 $490 Earnings (IP Share) $6 $22 $31 1 1 Ilim recorded an asset impairment charge (IP share was $12 million) Ilim’s results are reported on a one-quarter lag. IP’s shares of Ilim’s reported earnings for 4Q09 & 4Q10 include an after-tax foreign exchange gain of $2MM and $10MM, respectively. 3Q10 earnings include an after-tax foreign exchange loss of $6MM. Ilim Joint Venture 4Q10 vs. 3Q10 Ilim Joint Venture 4Q10 vs. 3Q10 4Q10 vs. 3Q10 4Q10 vs. 4Q09 Business Volume Price / Ton Volume Price / Ton Pulp 4% ($46) 7% $217 Containerboard 7% $61 (2%) $185 |
24 Ilim’s results are reported on a one-quarter lag Ilim Joint Venture Three-Year Progress Ilim Joint Venture Three-Year Progress 2010 EPS accretive Record earnings 2007 - 2010 $0.15 per share of equity earnings $152 million in cash dividends Current Developed & implementing strategic capital expansion program |
25 IP Europe, Middle East & Africa 2010: 10% of IP Sales & 15% of IP EBITDA IP Europe, Middle East & Africa 2010: 10% of IP Sales & 15% of IP EBITDA Record earnings in 2010 Strong earnings in paper & packaging segments Strong returns in both Western & Eastern Europe Return on Investment 2010 European Papers, excl. Russia 18% Russian Papers 15% EMEA Container 11% Total Capital Employed (Billion) $1.6 |
26 Debt Reduction Progress Target: Adjusted Debt < 3X EBITDA Debt Reduction Progress Target: Adjusted Debt < 3X EBITDA Adjusted Debt reflects gross balance sheet debt plus pension gap 1 Pension gap as of 12/31/08 2 Excludes debt repayments of $2.75 B from the proceeds of bonds issuances of $2.75 B 3 Pension gap as of 12/31/10 |
27 Capital Spending 2011 Estimate: $1.2 - $1.3 Billion Capital Spending 2011 Estimate: $1.2 - $1.3 Billion $ Million Normalized Target 60-70% of Depreciation % of Depreciation Reflects continuing operations Cycle Capex Target: ~$1B |
28 Energy Efficiency Progress Record-Low Purchased Energy Consumption Energy Efficiency Progress Record-Low Purchased Energy Consumption U.S. Mill System 2010 Fossil Fuel Consumption per Ton 8% less than 2009 ($75 MM) 45% less than 2000 ($360 MM) Set new low-record for purchased energy usage 5 mills set new records 2010 Most-Improved Mills Saillat – 18% lower Svetogorsk – 16% lower |
29 Fourth-Quarter Summary Fourth-Quarter Summary Started with strong 3Q momentum Seasonal volume decline offset by price realization More maintenance outages Input cost increases Strong Ilim JV contribution Strong 4Q Earnings & Free Cash Flow |
30 First Quarter Outlook Changes from 4Q10 First Quarter Outlook Changes from 4Q10 North America Europe Brazil Asia Volume Paper Stable Stable Seasonal Decrease Packaging Stable Stable Stable Pricing Paper Stable Stable Stable Packaging Stable Stable Stable Maintenance Outages ~$12MM Increase ~$14MM Decrease Stable Input & Freight Costs Higher Fiber & Chemicals Slight Increase Stable Stable xpedx Increase Ilim Increase |
31 1Q & 2011 Outlook Momentum Continues 1Q & 2011 Outlook Momentum Continues 1Q11 Outlook Stable volumes Stable prices (with some pressure on exports) Increasing fiber & chemicals costs Strong Ilim JV contribution Strong 1Q EPS & FCF 2011 Outlook Global economies continue to recover Demand growth in most IP business segments Inventories in good shape Robust margin-improvement initiatives OCC costs to remain high Strong EPS, FCF & ROI |
32 Appendix Investor Relations Contacts Thomas A. Cleves 901-419-7566 Emily Nix 901-419-4987 Media Contact Tom Ryan 901-419-4333 |
33 $ Million (Except as noted) 2009 2010 2011 Estimate Capital Spending $534 $775 $1.2 - $1.3 B Depreciation & Amortization $1,472 $1,456 $1.4 B Net Interest Expense $669 $608 $575 - $600 Corporate Items $181 $226 $175 - $200 Effective Tax Rate 30% 30% 32 - 34% Before special items and excluding Ilim Key Financial Statistics Key Financial Statistics |
34 Free Cash Flow 2010 Free Cash Flow 2010 $ Million 2008 2009 1Q10 2Q10 3Q10 4Q10 2010 Cash from Operations $2,669 $2,766 1 $159 $509 $937 2 $919 3 $2,524 2,3 Cash Received from AFMTC & CBTC $0 $1,684 $0 $132 $0 $17 $149 Cash Provided by Continuing Operations $2,669 $4,655 $159 $641 $937 $936 $2,673 Less Capital Investment ($1,002) ($534) ($120) ($153) ($184) ($318) ($775) Free Cash Flow $1,667 $4,121 $39 $488 $753 $618 $1,898 Free Cash Flow Excluding AFMTC, CBTC & European AR Cash $1,667 $2,232 $39 $356 $753 $601 $1,749 1 Includes $205 MM cash received under European accounts receivable securitization 2 Excludes $1,150 MM cash paid for voluntary pension contributions 3 Excludes a tax receivable of $108 MM collected related to pension contributions IP received $1,684 MM cash from alternative fuel mixture tax credits (AFMTC) in 2009; $132 MM in 2Q10 IP received $17 MM cash from cellulosic biofuel tax credits (CBTC) in 4Q10 |
35 Monetization & Other: Timber Monetization debt and other debt intended to be rolled over or refinanced, (Sun joint venture debt and other foreign subsidiary debt) Debt Maturity Profile Maturities as of Year-End Debt Maturity Profile Maturities as of Year-End |
36 Cash & Committed Facilities $4.6 Billion Cash & Committed Facilities $4.6 Billion Maturity Facility Cost Quarter-End Cash - $2.1 B - $1 B 1 Accounts Receivables Program JAN 2012 Zero Drawn CP Rate 2 + 75 bps $1.5 B Corporate Revolver NOV 2012 Zero Drawn LIBOR + 300 bps Total Cash & Committed Facilities $4.6 B - Cost includes commitment fees 1 $877 MM available at quarter-end based on eligible receivable balances. Program renewed in January, 2011. 2 Conduit’s rate |
37 Debt Covenants & Credit Ratings Debt Covenants & Credit Ratings Covenant 12/31/10 Actual Maximum Debt-to-Total Capital 60% 41.2% Minimum Consolidated Net Worth $9 B $12.4 B Rating Outlook Standard & Poor’s BBB Stable Moody’s Baa3 Stable |
38 Pension Update Pension Update Market value of assets increased to $8.3 B 15.1% return on plan assets in 2010 Pension benefits obligation increased to $9.8 B 1 Unfunded obligation declined from $2.8 B to $1.5 B 1 No cash contribution required in 2011 1 US GAAP basis Year-End Funded Status |
39 Pension Plan Pension Plan Key Variables 2009 2010 2011E Assumed Rate of Return 8.25% 8.25% 8.25% Discount Rate 6.0% 5.8% 5.6% * Non-cash expense for U.S. plans only Pension expense reflects service cost, interest cost, amortization of actuarial losses and expected return on plan assets Average Annualized Returns 2010 15.1% Past Five Years 6.5% Past Ten Years 7.2% Portfolio Asset Allocation at 12-31-10 Target Actual Equity 40% - 51% 49% Bonds 30% - 40% 31% Real Estate 7% – 13% 8% Other 9% - 18% 12% |
40 $ Million 4Q10 1Q11E 2010 2011E Industrial Packaging $22 $41 $136 $149 North America $29 $39 $131 $138 Europe 14 0 $38 $35 Brazil 0 0 $13 $15 Printing Papers Total $43 $39 $182 $188 Consumer Packaging $17 $0 $42 $44 Total Impact $82 $80 $360 $381 Dollar impact of planned maintenance outages are estimates and subject to change Maintenance Outages Expenses Maintenance Outages Expenses ~60% of 2011 outage expense planned for 1H11 |
41 4Q10 vs. 3Q10 4Q10 vs. 4Q09 Business Volume Price / Ton Volume Price / Ton N.A. Container (5%) $4 3% $89 European Container* 13% €7 7% €76 Industrial Packaging Industrial Packaging * European Container volumes reflect box shipments only, including the shipments by the non-consolidated joint venture in Turkey |
42 Average IP price realization (includes the impact of mix across all grades) 4Q10 vs. 3Q10 4Q10 vs. 4Q09 Business Volume Price / Ton Volume Price / Ton N.A. Paper (6%) $7 (12%) $91 N.A. Pulp (10%) $3 (14%) $211 European Paper (2%) €0 (7%) €68 Printing Papers Printing Papers |
43 Average IP price realization (includes the impact of mix across all grades) 4Q10 vs. 3Q10 4Q10 vs. 4Q09 Volume Price/Ton Volume Price/Ton U.S. Coated Paperboard (7%) $14 9% $77 Revenue Price Revenue Price Converting Businesses 4% NA 7% NA Consumer Packaging Consumer Packaging |
44 Cellulosic Biofuel Tax Credit 4Q10 Cellulosic Biofuel Tax Credit 4Q10 $40 million after-tax credit 1 $17 million cash benefit IP cannot quantify the value of additional CBTC because it depends on future taxable earnings, but it could be significant 1 Reflects the after-tax value of 65 million gallons of black liquor processed in 2009 that was not submitted for alternative fuel mixture tax credits |
45 Special Items Pre-Tax from Continuing Operations Special Items Pre-Tax from Continuing Operations Special Items Pre-Tax ($Million) 4Q09 3Q10 4Q10 Industrial Packaging Alternative Fuel Mixture Credits $212 Facility & Machine Closure Costs ($670) ($10) Integration Costs ($15) Other ($2) ($3) Printing Papers Alternative Fuel Mixture Credits $221 Facility Closure Costs ($223) Other ($2) Consumer Packaging Alternative Fuel Mixture Credits $83 Facility Closure Costs ($67) Reorganization ($2) ($4) xpedx Reorganization ($5) Corporate Net Gain on Sale of Business $25 Restructuring & Other Charges ($82) ($36) Total Special Items Pre-Tax ($550) $0 ($30) |
46 Special Items Net of Taxes from Continuing Operations Special Items Net of Taxes from Continuing Operations 4Q10 2010 $ Million EPS $ Million EPS Earnings Before Special Items $296 $0.68 $890 $2.05 Special Items Net of Taxes: Mill & Machine Shutdowns $1 ($196) Tax Adjustments ($46) Debt Extinguishment Costs ($8) ($21) Environmental Reserve ($11) ($11) Box Plant Closures ($9) ($9) Cellulosic Biofuel Tax Credit $40 $40 Reorganization ($2) ($4) Overhead Reduction Initiative ($3) ($4) Other ($3) ($10) Net Gain on Sale of Business $15 $15 Total Special Items Net of Taxes $20 $0.05 ($246) ($0.57) Net Earnings $316 $0.73 $644 $1.48 |
47 4Q10 EBITDA 4Q10 EBITDA Operating Profit $ Million D & A $ Million Tons Thousand EBITDA per Ton EBITDA Margin Industrial Packaging North America 1 $259 $128 2,463 $157 19.5% Europe $16 $10 272 $96 9.4% Printing Papers North America 2 $92 $49 663 $214 21.0% Eastern Europe & Russia 3 $37 $21 306 $190 19.3% Brazil $63 $36 289 $343 31.6% U.S. Market Pulp $43 $14 250 $228 30.0% Consumer Packaging U.S. Coated Paperboard $36 $36 341 $211 18.2% 1 Excludes Recycling & Bag businesses; includes Saturating Kraft business 2 Includes Bleached Kraft business 3 Excludes Market Pulp |
48 Operating Profits by Industry Segment from Continuing Operations Operating Profits by Industry Segment from Continuing Operations $ Million 4Q09 3Q10 4Q10 2009 2010 Industrial Packaging $84 $332 $274 $741 $845 Printing Papers $139 $278 $236 $464 $798 Consumer Packaging $49 $71 $64 $177 $215 Distribution $31 $22 $9 $55 $78 Forest Products $18 $49 ($3) $25 $94 Operating Profit $321 $752 $580 $1,462 $2,030 Net Interest Expense ($163) ($152) ($150) ($669) ($608) Noncontrolling Interest / Equity Earnings Adjustment $4 $5 ($5) $23 $15 Corporate Items ($40) ($58) ($63) ($181) ($226) Special Items ($550) $0 ($30) $564 ($389) Earnings from continuing operations before income taxes, equity earnings & noncontrolling interest ($428) $547 $332 $1,199 $822 Equity Earnings, net of taxes - Ilim $6 $22 $31 ($50) $55 |
49 Geographic Business Segment Operating Results Geographic Business Segment Operating Results Excludes Forest Products $ Million Sales 4Q09 3Q10 4Q10 2009 2010 Industrial Packaging North American $1,855 $2,210 $2,135 $7,585 $8,355 European $260 $235 $275 $980 $990 Asian $95 $165 $160 $325 $495 Printing Papers North American $700 $715 $675 $2,815 $2,750 European $340 $325 $345 $1,280 $1,305 Brazilian $300 $275 $315 $960 $1,090 U.S. Market Pulp $160 $210 $190 $575 $715 Asian $25 $25 $15 $50 $80 Consumer Packaging North American $540 $615 $605 $2,200 $2,350 European $85 $85 $95 $315 $430 Asian (Sun JV) $160 $170 $180 $545 $620 Distribution $1,675 $1,755 $1,770 $6,525 $6,730 |
50 Geographic Business Segment Operating Results from Continuing Operations before Special Items Geographic Business Segment Operating Results from Continuing Operations before Special Items Excludes Forest Products $ Million Operating Profit 4Q09 3Q10 4Q10 2009 2010 Industrial Packaging North American $65 $320 $261 $682 $776 European $17 $14 $16 $57 $73 Asian $2 ($2) ($3) $2 ($4) Printing Papers North American $70 $125 $92 $307 $333 European $46 $58 $38 $115 $199 Brazilian $33 $46 $63 $112 $159 U.S. Market Pulp ($11) $49 $43 ($71) $107 Asian $1 $0 $0 $1 $0 Consumer Packaging North American $22 $51 $38 $87 $105 European $21 $17 $20 $66 $76 Asian (Sun JV) $6 $3 $6 $24 $34 Distribution $31 $22 $9 $55 $78 |
51 1 Assuming dilution 2 A reconciliation to GAAP EPS is available at www.internationalpaper.com under the Investors tab at Webcasts and Presentations Pre-Tax $MM Tax $MM Non- controlling Interest $MM Equity Earnings Net Income $MM Estimated Tax Rate Average Shares 1 MM Diluted EPS 2 Before Special Items 1Q09 $97 ($32) ($4) ($27) $34 33% 423 $0.08 2Q09 $183 ($61) ($4) ($32) $86 33% 425 $0.20 3Q09 $233 ($70) ($6) $0 $157 30% 429 $0.37 4Q09 $122 ($27) ($4) $10 $101 22% 427 $0.24 2009 $635 ($190) ($18) ($49) $378 30% 428 $0.88 Special Items 1Q09 $421 ($198) $0 $0 $223 47% 423 $0.53 2Q09 $337 ($287) $0 $0 $50 85% 425 $0.12 3Q09 $356 ($142) $0 $0 $214 40% 429 $0.50 4Q09 ($550) $348 $0 $0 ($202) 63% 427 ($0.48) 2009 $564 ($279) $0 $0 $285 49% 428 $0.67 Earnings 1Q09 $518 ($230) ($4) ($27) $257 44% 423 $0.61 2Q09 $520 ($348) ($4) ($32) $136 67% 425 $0.32 3Q09 $589 ($212) ($6) $0 $371 36% 429 $0.87 4Q09 ($428) $321 ($4) $10 ($101) 75% 427 ($0.24) 2009 $1,199 ($469) ($18) ($49) $663 39% 428 $1.55 2009 Earnings from Continuing Operations 2009 Earnings from Continuing Operations |
52 1 Assuming dilution 2 A reconciliation to GAAP EPS is available at www.internationalpaper.com under the Investors tab at Webcasts and Presentations Pre-Tax $MM Tax $MM Non- controlling Interest $MM Equity Earnings Net Income $MM Estimated Tax Rate Average Shares 1 MM Diluted EPS 2 Before Special Items 1Q10 $40 ($13) ($9) ($2) $16 32% 429 $0.04 2Q10 $262 ($81) ($7) $7 $181 31% 433 $0.42 3Q10 $547 ($170) ($2) $22 $397 31% 434 $0.91 4Q10 $362 ($100) ($3) $37 $296 28% 435 $0.68 2010 $1,211 ($364) ($21) $64 $890 30% 434 $2.05 Special Items 1Q10 ($215) $37 $0 $0 ($178) 17% 429 ($0.42) 2Q10 ($144) $56 $0 $0 ($88) 39% 433 ($0.21) 3Q10 $0 $0 $0 $0 $0 0% 434 $0 4Q10 ($30) $50 $0 $0 $20 167% 435 $0.05 2010 ($389) $143 $0 $0 ($246) 37% 434 ($0.57) Earnings 1Q10 ($175) $24 ($9) ($2) ($162) 14% 429 ($0.38) 2Q10 $118 ($25) ($7) $7 $93 21% 433 $0.21 3Q10 $547 ($170) ($2) $22 $397 31% 434 $0.91 4Q10 $332 ($50) ($3) $37 $316 15% 435 $0.73 2010 $822 ($221) ($21) $64 $644 27% 434 $1.48 2010 Earnings from Continuing Operations 2010 Earnings from Continuing Operations |
53 Earnings before special items 4Q10 vs. 4Q09 EPS 4Q10 vs. 4Q09 EPS Earnings from continuing operations before special items |
54 Industrial Packaging Earnings 4Q10 vs. 4Q09 Industrial Packaging Earnings 4Q10 vs. 4Q09 Earnings before special items |
55 Printing Papers Earnings 4Q10 vs. 4Q09 Printing Papers Earnings 4Q10 vs. 4Q09 Earnings before special items |
56 $ Million 4Q09 3Q10 4Q10 Sales $300 $275 $315 Earnings $33 $46 $63 EBITDA Margin 23% 29% 32% IP Brazil results are reported in the Printing Papers segment IP Brazil IP Brazil 4Q10 vs. 3Q10 4Q10 vs. 4Q09 Business Volume Price / Ton Volume Price / Ton Uncoated Freesheet 10% ($7) (7%) $93 Domestic 13% ($23) 5% $7 Export 8% $6 (15%) $167 |
57 Consumer Packaging Earnings 4Q10 vs. 4Q09 Consumer Packaging Earnings 4Q10 vs. 4Q09 Earnings before special items |
58 2010 Total North American Mills Cash Cost Components 2010 Total North American Mills Cash Cost Components |
59 Global Input & Freight Costs vs. 2009 $643 MM Unfavorable, or $1.05/Share Global Input & Freight Costs vs. 2009 $643 MM Unfavorable, or $1.05/Share Input costs for continuing businesses |
60 Global Input & Freight Costs vs. 4Q09 $168 MM Unfavorable, or $0.31/Share Global Input & Freight Costs vs. 4Q09 $168 MM Unfavorable, or $0.31/Share Input costs for continuing businesses |
61 U.S. Mill Wood Delivered Cost Trends 2% Decrease vs. 3Q10 Average Cost U.S. Mill Wood Delivered Cost Trends 2% Decrease vs. 3Q10 Average Cost |
62 U.S. OCC Delivered Cost Trends 17% Increase vs. 3Q10 Average Cost U.S. OCC Delivered Cost Trends 17% Increase vs. 3Q10 Average Cost 2005-2007 represents WY PKG delivered costs; 2008-2010 represents delivered costs to the integrated system |
63 NYMEX Natural Gas closing prices Natural Gas Costs 13% Decrease vs. 3Q10 Average Cost Natural Gas Costs 13% Decrease vs. 3Q10 Average Cost |
64 U.S. Fuel Oil 7% Increase vs. 3Q10 Average Cost U.S. Fuel Oil 7% Increase vs. 3Q10 Average Cost WTI Crude prices |
65 U.S. Chemical Composite Index 7% Increase vs. 3Q10 Average Cost U.S. Chemical Composite Index 7% Increase vs. 3Q10 Average Cost Delivered cost to U.S. facilities; includes Caustic Soda, Sodium Chlorate, Starch and Sulfuric Acid 2005 - 2008 excludes WY PKG |
66 2011 Global Consumption Annual Purchase Estimates for Key Inputs 2011 Global Consumption Annual Purchase Estimates for Key Inputs Does not include Asian or Ilim consumption Estimates are based on normal operations and may be impacted by downtime Commodity U. S. Non – U. S. Energy Natural Gas (MM BTUs) 42,000,000 13,000,000 Fuel Oil (Barrels) 1,500,000 500,000 Coal (Tons) 860,000 260,000 Fiber Wood (Tons) 44,200,000 8,800,000 Old Corrugated Containers (Tons) 3,000,000 - Chemicals Caustic Soda (Tons) 250,000 70,000 Starch (Tons) 394,000 96,000 Sodium Chlorate (Tons) 180,000 40,000 LD Polyethylene (Tons) 39,000 - Latex (Tons) 22,000 4,000 |