meadwestvaco credit suisse conference
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Credit Suisse2012 Global Paper & Packaging ConferenceE. Mark RajkowskiSenior Vice President & Chief Financial Officer
February 23, 2012
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Forward-Looking StatementsCertain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of each company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings from the company's ongoing cost reduction initiatives; the ability of MeadWestvaco to close announced and pending transactions, including MWV Consumer & Office Products/ACCO Brands transaction; the reorganization of the company's packaging business units; competitive pricing for the company's products; impact from inflation on raw materials, energy and other costs; fluctuations in demand and changes in production capacities; relative growth or decline in the United States and international economies; government policies and regulations, including, but not limited to those affecting the environment, climate change, tax policies and the tobacco industry; the company's continued ability to reach agreement with its unionized employees on collective bargaining agreements; the company's ability to execute its plans to divest or otherwise realize the greater value associated with its land holdings; adverse results in current or future litigation; currency movements; volatility and further deterioration of the capital markets; and other risk factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2010, and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.
Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
We have built a business model that is delivering step-change performance
Key Takeaways
3Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
1Our improved growth profile will drive strong earnings and cash flow
We expect to achieve top quartile TSR32
4Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
MWV: A Global Packaging Leader
$6.1 Billion2011 total sales
100+nations where we market our products
28% 2011 total sales from emerging markets
17,500 employees worldwide
705,000acres of forestland under sustainable management
$1.00annual dividend
73%Packaging
13%Specialty Chemicals
12%Consumer & Office Products
2%Community Development & Land Management
Sales by Business Segment
5Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Our Strong, Sustainable Business Model
* Unaudited** Excludes $350 million of Alternative Fuel Mixture Credits
367531
635
6.8%
9.3%10.5%
0%
2%
4%
6%
8%
10%
12%
$0
$250
$500
$750
2009 2010 2011*
Adjusted EBIT / EBIT Margin
28% 28%
32%
0%
10%
20%
30%
2009 2010 2011
Net Debt to Total Capital
Cash Flow from Cont. Ops.($MM) ($MM)
481551 565
$0
$200
$400
$600
2009** 2010 2011
6Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Our Powerful Packaging Platform
Our Revenue Growth Model
~ 1-2%
~ 1-2%
~ 2-3%~ 1-2%
~ 5% +
7Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
CoreMarket
Commercial Excellence
Innovation
EmergingMarkets
Total
Average annual growth over next 3-5 years
+ $1 billion
Our Profitable Growth Levers
8Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Commercial Excellence~ 1-2% per year
• Right people• Right capabilities• Customer
partnerships
Innovation~ 2-3% per year
• Robust, sustainable pipeline
• Insights-centric• Scalable platform
Emerging Markets~ 1-2% per year
• Strategic geographies• Demonstrated track
record• Investing for the
future
5%+ Revenue Growth
• Leading designer and manufacturer of dispensing closures
• Brings new capabilities in targeted markets of food, personal care, and home and garden
9Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Growth Through Expanded Participation
10Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Our Business Model
~ 25-50 bps
~ 25-50 bps
MarginExpansion
• Commercial Excellence• Innovation• Emerging Markets
Core Growth Levers
• Existing manufacturing capacity
• Overhead structureOperating Leverage
• Operational excellence• Supply chain expertiseProductivity
11Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
Our Shareholder Value Framework
Top Quartile TSR
Earnings Growth~ 7-10%+
Dividend Yield~ 3-5%
MarginExpansion
~ 50-100 bps
Revenue Growth~ 5%+
We have built a business model that is delivering step-change performance
Key Takeaways
12Credit Suisse 2012 Global Paper & Packaging Conference / February 23, 2012
1Our improved growth profile will drive strong earnings and cash flow
We expect to achieve top quartile TSR32