2005 Business Strategy

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Folding Cartonboard Choice Impacts Unsaleables
Mike Skrovanek VP Marketing Coated Board Division
COATED BOARD
July 21, 2005
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MeadWestvaco

• 6B global producer of packaging, specialty
  papers, consumer and office products, and
  specialty chemicals
• The company has operating and office locations in
  29 countries and serves customers in nearly 100
  countries
• Key markets consumer products, personal care,
  pharmaceutical, media and entertainment, and
  school and office products
• Consumer brands include Mead, AT-A-GLANCE,
  Cambridge, Columbian, and Five Star
• Paperboard, package, and paper brands include
  Carrier Kote, Custom Kote, Kraftpak,
  Printkote, Tango, DigiPak, Amaray, Dosepak,
  Vision, and Sterling Ultra
• I represent the paperboard brands of Coated
  Natural Kraft
• Carrier Kotethe choice for beverage
  manufacturers worldwide
• Custom Kotethe choice for all other consumer
  products

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Its The Pulp
Whats the difference?
Recycled
Hardwood0.71.5mm
Softwood35mm
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MWV Began Work on Unsaleables in 1999

• Knew unique fibers provided protection from
  experience in beverage industry

Project with Mrs. Smiths Pies in 2001 confirmed
value
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Third Party Verification Started with MSU

• Engaged Michigan State University School of
  Packagings Center for Food and Pharmaceutical
  Packaging Research to perform own study as part
  of corporate research funding
• Managed by Dr. Bruce Harte, Director of School of
  Packaging, MSU
• MSU designed experiment
• Full box compression testingloaded with frozen
  peas
• CRB, SBS, SBS poly, and CNK cartons supplied
• MSU validated results in press release dated
  3/15/05

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Michigan State CFPPR Results
MSU Before Freeze-Thaw
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Michigan State CFPPR Results
MSU After Five Freeze-Thaw Cycles
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Second StepWhere The Rubber Meets The Road

• Engaged Damage Research/GENCO for supply chain
  and store shelf studies
• Followed items from manufacture through retail
• No significant damage until store shelf
• Focus on measuring the store-shelf damage
• Chose head-to-head competitive items using
  different substrates
• To claim a 25 damage reduction, we would need to
  collect over 21,721 samples for statistical
  significance

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Types of Damage Counted
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Study Population Details and Results
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After Considering Unsaleables, Paperboard Choice
Makes a BIG Impact on Overall Cost
Average Frozen Retail Price In Study 3.00 Wholesa
le Price (60) 1.80 CNK SBS Damage
1.55 2.77 Board Price / Ton (Pulp Paper
Week July 2005) 870 980 Board Cost / Unit
(.018 Dole vs. .016 Popsicle example) 0.050 0.05
5 Board Cost / Unit Incl. Damage
Cost 0.078 0.105 CNK Advantage / M
Cartons 26.64 CNK Advantage Per Ton 462
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Thank You!Questions?