How Industry uses FIA data?SAF National FIA User Group Meeting

Salt Lake City, UTMarch 20, 2013

John Paul McTague – Rayonier FR&SS

Current UsesFIA statistics and market intelligence1. Provide baseline understanding for areas of

interest 2. Indicate where supply statistics support

potential market additions or challengesInput data for the SRTS (Sub-Regional Timber

Supply) model.Wood Basket Analysis - is the resource

increasing, decreasing1) Set distance radii around a mill

2) Group of counties or an entire state

Understanding potential challenges or opportunities for operations. Below is a side-by-side comparison of supply statistics for three basins

3Rayonier Confidential and Proprietary Information

Basin 1 Basin 2 Basin 3

Size (MM Acres) # Counties Included

6.5

20

13.1

31

5.3

15

Timberland Ownership Private Acres Public Acres % Private Acres

5.80.7

89%

11.51.7

87%

4.40.8

85%

Private Timberland Type Mix Plantation Natural / Mixed Pine Upland Hardwood Lowland Hardwood

2.0 | 35%1.8 | 32%1.0 | 18%0.9 | 16%

4.2 | 46%2.2 | 24%1.7 | 19%1.0 | 11%

1.7 | 49%0.8 | 24%0.6 | 19%0.4 | 11%

Current Species Mix Loblolly / Shortleaf Slash / Longleaf

96%4%

71%28%

74%26%

Pine Plantation Volume Summary

Basin 1 Basin 2 Basin 3

Inventory (MM Tons)PulpwoodGrade (9-12.9”)Grade (13”+)

25.1 | 41%26.3 | 43%10.2 | 17%

55.2 | 40%58.8 | 42%25.5 | 18%

20.0 | 35%22.7 | 40%13.9 | 25%

Growth (MM Tons)PulpwoodGrade (9-12.9”)Grade (13”+)

3.3 | 50%2.6 | 39%0.7 | 11%

7.5 | 49%5.9 | 39%1.8 | 12%

2.7 | 51%1.9 | 37%0.7 | 13%

Removals (MM Tons)PulpwoodGrade (9-12.9”)Grade (13”+)

1.8 | 35%2.5 | 50%0.7 | 15%

5.2 | 59%2.8 | 31%0.8 | 10%

3.3 | 66%1.4 | 28%0.3 | 6%

Growth-to-Drain RatioPulpwoodGrade (9-12.9”)Grade (13”+)

1.821.021.01

1.442.152.17

0.811.392.21

Market Consumption (M Tons ‘05-’09)

PulpwoodSawlogsVeneer LogsPoles, Posts, etc.

∆ %∆ -136 | -4%-1,520 | -29%-1,882 | -45% -31 | -52%

∆ %∆ 395 | 5%-5,412 | -66%-1,207 | -55% -74 | -24%

∆ %∆ 129 | 3%-1,670 | -10% -946 | -41% 31 | 55%

G/R statistic is a key indicator of market opportunity

Rayonier Confidential and Proprietary Information5

Demonstrating scale and focus with acres by speciesAcres by Species Group for Basin 1

*Source: FIA Data

Rayonier Confidential and Proprietary Information6

Private Timberland ResourceAcres by Age Class for Basin 1

Age class distribution skewed to <19 ages

*Source: FIA Data

Rayonier Confidential and Proprietary Information7

Pine Inventory Characteristics by ProductInventory, Growth and Removals for Basin 1

Growth-to-Drain ratios indicate strong growth of the pulpwood product poolLarge grade G/D reflective of natural pine component

*Source: FIA Data; Rayonier Analysis

Rayonier Confidential and Proprietary Information8

Pine Plantation Volume DistributionInventory, Growth and Removals for Basin 1

Growth-to-Drain relationship more pronounced in smaller dbh classes

*Source: FIA Data; Rayonier Analysis

Rayonier Confidential and Proprietary Information9

Demonstrate History through Harvest CharacteristicsUSDA FIA Timber Product Output Survey Removals by Survey Year for Basin 1

Decline in sawlog harvest of 1.5 million tons (29%) between 2005 and 2009

*Source: FIA Timber Product Output

The Sub-Regional Timber Supply Model (SRTS) Can provide projections of inventory, harvests, growth, and potential price

response over time that can be used for business and strategic planning.

Pine Pulpwood.5%/yr demand inc.

020406080

100120140

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2005

=100

Price Inventory Removals

Pine Small Sawtimberno demand inc .

0

50

100

150

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2005

=100

Price Inventory Removals

Wood Basket ExampleThe Typical Situation:

A new wood using facility is scheduled to open near one of our mills. The new facility will use X tons per year.

Question: How large of an impact will this new wood consumption have on our mill’s wood basket?

Strategy:Do we need to change our species mix or other procurement strategy to keep fiber costs stable.

Wood Basket Example Rayonier’s Jesup Mill

Location: Jesup, Georgia Products: Absorbent pulp and specialty pulp Wood species: Southern pine and hardwood Average Haul: 50 miles

Wood Basket Example NCASI’s GForest - 75 mile radius for Jesup

Wood Basket Example NCASI’s GForest - 75 mile radius for Jesup Volume of GS trees on timberland

Wood Basket Example NCASI’s GForest - 75 mile radius for Jesup Acres, Inventory, Growth, Removals

FIA cubic foot Inventory, Growth and Removals for 75 mile radius around Jesup, GA (Lat=31.645, Lon=81.855)

---------------------- Ownership ----------------------Type Nat. Forest Other Fed. State & Local Private Total

Timberland Acres Planted 0 5,000 63,000 2,828,000 2,896,000Natural 0 305,000 152,000 3,269,000 3,726,000Total 0 310,000 215,000 6,097,000 6,622,000

Origin Partition Softwood Hardwood Total

Inventory Planted Merch Stem 2,937,820,771 52,247,046 2,990,067,817Natural Merch Stem 2,256,938,756 3,254,500,466 5,511,439,222Total 5,194,759,527 3,306,747,512 8,501,507,039

Growth Planted Merch Stem 366,675,232 5,062,212 371,737,444Natural Merch Stem 80,532,857 111,250,575 191,783,432Total 447,208,089 116,312,787 563,520,876

Removals Planted Merch Stem 261,532,211 16,865,384 278,397,595Natural Merch Stem 30,014,667 186,550,795 216,565,462Total 291,546,878 203,416,179 494,963,057