MWV : A Global Packaging Company

1
MWV A Global Packaging Company

• John A. Luke, Jr. Chairman and CEO
• 10th Annual Citigroup Global Paper and Forest
  Products Conference
• December 1, 2005

2
Forward-looking Statements
This presentation includes certain
forward-looking statements, and actual results
may differ. Any such statement involves risks and
uncertainties described in the companys Annual
Report on Form 10-K for 2004. We may or may not
update these statements at a future time to
reflect new information or future events.
3
Strategic Goal
Packaging is Our Major Business

• Our goal is to be the global leader in consumer
  packaging solutions.
• Focused, profitable company
• Reduced earnings volatility
• Strong balance sheet
• Positioned to win in major consumer packaging
  markets

Packaging 4.4 BN
72
Consumer Office Products 1.1 BN
18
10
Specialty Chemicals Specialty Papers 0.6 BN
4
Our Growth Strategy

• Our Packaging Business
• Maintain and extend positions in attractive
  markets
• Expand our global footprint in China, Russia,
  Brazil and India
• Aggressively pursue opportunities in identified
  markets and services

• Our Other Businesses
• Leverage existing Specialty Chemicals platform
  for growth
• Maintain and extend positions in COP and
  Specialty Papers markets
• Maximize value from Forestry assets

5
Packaging Value Chain
Packaging Platform
Materials
Converting
Systems
Supplier of multi-substrate packaging materials,
including high quality paperboard produced at our
mills in the United States and Brazil
48 Plants with expertise in paperboard, plastics
and other materials
1300 Systems installed with sales offices in the
United States, Europe, Asia and Australia
Packaging Solutions Design Providing global
customers with end-to-end solutions across five
major markets.
Media
Healthcare
Tobacco
Beverages
Cosmetics
6
Global Packaging Company
A global reach with a majority of sales from
outside the U.S.
Converting Plants in 15 Countries
Customers in 100 Countries
Growing Presence in China and Russia
6 Paperboard Mills in the U.S. and Brazil
Packaging 60 Paperboard 40 Converting, Design
and Systems
Major MarketsMedia, Healthcare, Beverages,
Cosmetics and Tobacco
7
Key Packaging Statistics
Portions of Packaging Market with High
Competitive Advantage
Global Packaging Market
Targeted Packaging Market
30 - 50 Billion
200 Billion
425 Billion

• Other Markets
• Corrugated
• Glass
• Metal

• By Raw Material
• Boxboard
• Rigid Plastics
• Flexible Plastics

30- 50B
30- 50B
Target Markets 200B
Target Markets 200B
150B
200B
200B

• By Step in Value Chain
• Raw Material
• Conversion
• Packaging Systems Filling

30- 50B

• Target Markets
• Paperboard (SBS, CUK, FBB, CRB)
• Plastics (Flexible, Rigid)
• Machinery

8
Packaging Growth Opportunities
MWV Addressable Markets

• We are focused on specific market segments within
  packaging.
• Large market opportunities
• Growth in attractive end-markets
• Achievable, profitable share gains
• Global growth

4
Growth
Addressable Future
Addressable Today
4
MWV
Segment Size (B)
3
2
2
4
1
5
7
35B Today ? 50B Possible
Market
9
Market Intelligence
G
K
L

• We take a disciplined approach to market
  intelligence to understand market potential.
• Growth Rates
• Geography
• Customers
• Competitors
• Products

M
C
N
Total
2,000MM
850MM
300MM
3,40MM
100
Country A
S
Country D
T
E
U
O
80
F
V
P
G
W
X
y
H
60
Q
Z
Country B
I
AA
40
R
20
J
0
North America
Europe
Asia
150
50
100
100
Other - 1.0
Other -
Other - 1.0
4.5
80
A
60
Market A - 2.5
6.5
Market A - 2.0
40
BC
Market BC - 3.0
8.0
Market BC- 0.8
20
0
Western Europe
Eastern
US
Europe
10
Major Packaging Markets

• We are pursuing growth in higher quality, more
  demanding, packaging markets.

Media
Beverage
Healthcare
Consumer Goods
3-15 Growth
4-6 Growth
2-5 Growth
2-4 Growth
Digipak System
FridgeMaster Duralift
Surepak Dosepak
Klearfold Vista
11
Improving Returns
Turns Drivers
Driving Earns
Driving Turns

• Through Margin Improvements
• Meeting demanding customer requirements
• Innovative products
• Unique materials

• Through Asset Efficiency
• Niche applications
• Customer intimacy
• Bundled solutions

• SBS for Aseptic liquid packaging meets the
  highest customer standards for quality and
  purity, supplied on a global basis.

Media packaging solutions provide customers value
through integrated art and packaging designs,
digital asset management, multiple substrates,
and print management services.

• CNK for Beverage packaging provides the highest
  wet strength for multi-pack and refrigerated
  applications.

12
Cost Initiative

• We are creating a more efficient and responsive
  business model.
• Consistent with our global packaging strategy
• Total savings of 200 million pre-tax
  (2005-2007)
• Reducing GA in businesses and corporate services
• Moving to a shared, enterprise-wide approach to
  delivering business services
• Smaller real estate footprint, reduced headcount

13
Signposts of Progress
8.5 ROIC

• Continued Forestland Sales
• Divestiture of Papers Business
• Reduce Asset Intensity

• Mix Improvement
• New Products and Services
• Growth End Markets Organic, Acquisition

• 2005-2007Cost Initiative, 200MM
• New Business Model more efficient, robust, less
  costly

• Price
• Volume

Asset Management
Market Demand
ProfitableGrowth Strategies
Cost Productivity
14
MWV A Global Packaging Company

• John A. Luke, Jr. Chairman and CEO
• Citigroup Conference
• December 1, 2005