Working Together for a Successful Supply Chain Mike Macedo, - PowerPoint PPT Presentation

Working Together for a Successful Supply Chain Mike Macedo, International Paper Virginia Loggers Assoc 2015 Annual Meeting

International Paper . . . International Paper . . . Was founded in 1898 Was founded in 1898 58,000 employees worldwide In 24 countries Is headquartered in Memphis TN Is headquartered in Memphis,TN 2014 net sales of $24 billion

Our Vision To be one of the most respected and successful companies in the world companies in the world. Mark S. Sutton Chairman and Chief Executive Officer International Paper

Global Business Overview INDUSTRIAL CONSUMER PRINTING PACKAGING PACKAGING PAPERS & PULP 85% North America 58% North America 35% N.A. Papers 9% EMEA 31% Asia 26% EMEA/Russia 4% Asia 11% EMEA/Russia 19% Latin America 2% Latin America 16% N.A. Pulp 3% India 1% Asia 62% PERCENT 14% PERCENT 24% PERCENT OF TOTAL OF TOTAL OF TOTAL REVENUE REVENUE REVENUE Company Overview 4 WHO WE ARE

IP Global Footprint IP Global Footprint

Absorbent hygiene products demand growth in emerging markets d d th i i k t 10,000 ta) me (USD/capi 9,000 8,000 7,000 osable Incom 6,000 5,000 4,000 4,000 Dispo 3,000 2,000 1,000 1 000 0 1995 2000 2005 2010 2015 2020 MEA Asia-Pacific Eastern Europe Latin America Source: Euromonitor

IP s History of Fluff Capacity IP’s History of Fluff Capacity The Riegelwood conversion is the next step in supporting our customers’ growth 1,600 , 1,400 ) Tons 1,200 pacity (000’s) 1,000 Riegelwood 800 #2 #2 Cap $135MM 600 Franklin $100MM 400 Riegelwood $60MM $60MM Pensacola 200 Georgetown 0 2007 2007 2009 2009 2013 2013 2016 2016 Source: IP Pulp Business

Multi-Mill System & Efficient Supply Chain Solutions Supplying the best absorbent fiber to customers around the world Franklin, VA 270k mtpy Riegelwood, NC 200k mtpy + 400k mtpy Georgetown, SC 330k mtpy = Loblolly / Short Leaf Pensacola, FL = Slash Pine / Long Leaf 150k mtpy py Source: IP Pulp Business

Our Franklin Fluff Pulp Mill Our Franklin Fluff Pulp Mill

Fluff Pulp Production at Franklin 10

Rising Tide Lifts All The Supply Chain Boats Landowners Loggers Suppliers Truckers Support Mills

Where We Can Work Together Where We Can Work Together • Efficiency improvements Efficiency improvements – Logging productivity & Cost – Net weight Net weight – Trucking (Technology) – Increasing & improving the labor pool Increasing & improving the labor pool – Receiving mill wood handling • Governmental Affairs G ff – Regulations • Safety

Mi in. 10 15 20 25 30 35 0 5 Jan n Turning Your Trucks Around! Turning Your Trucks Around! Feb Mar r Apr r May y Jun n Jul l Aug g Sep p Oct t Nov v Dec c Jan n Feb b Mar r 2013 ‐ 2015 Rdwd TAT by Month Apr r May y Jun n Jul l Aug g Sep p Oct t Nov v Dec c Jan n Feb b Mar r Apr r May y Jun n Jul l Aug g Sep p Oct t Nov v Dec c Linear (TAT) Target TAT

Destination of Choice Driver Kiosks

Destination of Choice Enhancements Enhancements

Safety ! Driver Safety Training Days Driver Protection booths Driver Protection booths

Load Safety Load Heights g Unbinding Racks

Safety ! Portable untarping untarping Ladders Stationary Stationary Tarping Stations

SOUTHEAST VIRGINIA LOGGING CAPACITY TASK FORCE ACCOMPLISHMENTS ACCOMPLISHMENTS • June 2013 Logging Expo – 150 participants gg g p p p • Participation in the Richmond Logging Equipment Expo • Workforce Development Counselors Tour • Presentation to schools -opportunities in the logging business • Interviews with local media Interviews with local media • Publication in Timber Harvesting Magazine • Workshops: Workshops: – Transportation and Trucking Regulations – 65 participants – Insurance for Loggers– 48 participants – Chipper Maintenance and Safety Chipper Maintenance and Safety – Truck Weights – 85 participants

Virginia Truck Weight Law Virginia Truck Weight Law • Took two years of hard work Took two years of hard work • Cooperation throughout the supply chain – Associations, mills, landowners, loggers A i ti ill l d l (Virginia Forestry Association, Virginia Forest Products Association, Virginia Loggers Association, The Virginia Farm Bureau, The Virginia Agribusiness Council, The Virginia Department of Forestry) – Effective government relations work – Support from Governor’s office, Secretary Todd Haymore & Deputy Secretary Sam Towell

Success ! Result = 90,000 lb legal weight • Less waste in supply chain • Competitive with Other States p • Responsible implementation

TEAM TRUCK A New Collaboration Opportunity • Collaboration of Loggers, Insurance Companies, Mills, Landowners to reduce accidents through effective fleet management, increasing the number of safe, qualified drivers in order to deliver a sustainable and profitable supply chain.

TEAM TRUCK TEAM TRUCK • Four Key Subcommittees Four Key Subcommittees – Awareness/Professionalism – Education/Training Education/Training – Accountability – Promotions Promotions

A Dynamic Industry A Dynamic Industry • Pulp & Paper – Commodity Business Pulp & Paper Commodity Business – Low cost production wins – Constant change is way of life Constant change is way of life – A strong Supply Chain is a necessity Flexibility + Collaboration = Success!