John Hobbs Director Investor Relations

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John HobbsDirector - Investor Relations

• NIRI Seattle Chapter
• May 10, 2005

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A Little Background First

• 6.5 Billion market capitalization
• SP 500 company
• 11 Sell-side analysts
• 4.5 dividend yield taxed as long-term cap
  gains
• 50 retail - 50 institutional investor base
• Forest products business in a REIT structure

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Investment Isnt Just About Risking Financial
Capital
INVESTOR PROCESS
THE INVESTMENT
Awareness
Time Intellectual Capital
Develop Opinion
Financial Capital
Investment Decision
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Getting Investors Attention is a Challenge ...

• Investors have thousands of choices!
• Your industry and company is a fraction of the
  equity universe.

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The Screening Process Becoming Aware of a
Company
5,000 US Equities
Qualitative Screens Quantitative
Screens Macroeconomic Outlook Preconceived
Notions and Beliefs Fundamental Research Media
PCL
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Some Practical Advice for Increasing Awareness of
Your Company

• Return phone calls - NOW
• Have lunch with investors
• Use your sell-side coverage
• Realize a stock broker is a PM by another name

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Return Phone Calls

• Potential investors who call have already
  OVERINVESTED in your company!
• Call them back IMMEDIATELY
• Engage them in two-way conversation
• Who else should you be talking to?

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When On The Road Host Small Group Luncheons

• Many interested investors dont know or
  understand your company
• Small group lunches allow them to
• Hear your story without a lot of legwork
• See and meet management
• Have a meal
• Local CFA chapters, regional brokerages, smaller,
  current institutional shareholders

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Use Your Sell-side Coverage

• The sell-side is not dead their recommendations
  are just ignored by many institutions
• Sell-side broadens the reach of your IR
  department
• Be familiar with their retail system
• Participate in retail system calls if asked or
  your analyst is willing
• Keep in touch with industry sell-side analysts
  that dont cover you

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13-F Filers - Arent the Only Investors

• Insurance companies Schedule D
• Wealth management groups within the large
  brokerage firms
• Family offices
• Retail stock brokers
• Top brokers within national retail systems like
  Merrill Lynch, Citigroup/Smith Barney
• Top brokers within smaller, more regional firms
  such as DA Davidson or Davenport Co.

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