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MeadWestvaco
JPMorgan Third Annual Basics & Industrials Conference
E. Mark Rajkowski – Senior Vice President & Chief Financial Officer
June 4, 2008
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 divestitures; the reorganization of the company’s packaging business units; competitive pricing for the company’s products; changes in raw materials pricing; energy and other costs; fluctuations in demand and changes in production capacities; changes to economic growth in the United States and international economies; government policies and regulations, including, but not limited to those affecting the environment 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 forestlands; adverse results in current or future litigation; currency movements; and other risk factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2007, 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.
Key Investment Considerations
Business transformation generating better growth and returns
Achievable margin expansion opportunities
Land business to deliver new, sustainable cash flows
Strong financial position and dividend
Strengthened Business Model
Packaging 51%
2003 2007
Sales Growth Operating Cash ROICResults:
50% Packaging
Cyclical, capital intensive
Secondary packaging
Commodity supplier
75% Packaging
Innovative offerings
Primary & secondary packaging focus
Strategic partner
MWV is a Global Leader in Packaging and Packaging Solutions
Operations on 6 continents
Employees in 30 countries
Customers in 100 nations
50% sales outside U.S.
We serve the world’s largest consumer brands in these markets and industries:
Beverage, Food & Tobacco+ 2% Global Growth
Healthcare+ 5% Global Growth
Personal & Beauty Care+ 5% Global Growth
Home and Garden+ 3% Global Growth
MWV Global Packaging Markets
Focused on Key Margin Drivers
GrowthInnovation & Emerging Markets
Go-to-Market Strategy
Pricing power
Land BusinessIncrease land sales and entitlements
Execute development opportunities
ProductivityManufacturing
Sourcing & Supply Chain
SG&A
8
Key Margin Drivers: Growth
Emerging Markets
Personal Care and Healthcare focus
Primary plastics
New products & extending leadership positions
New technological capabilities
Leveraging investments – Wuxi
Growing with customers – SC Johnson
Brazilian business expanding to India agriculture markets
15% growth in 2007; accelerating in 2008
Innovative Products
9
Aligns full breadth of capabilities for targeted global markets
Accelerates innovation and growth in packaging business
Develops valuable customer and consumer insights
Increases accountability for sales and marketing
Reduces complexity for our customers
Insights
Services
Primary & Secondary Solutions
Innovation
Materials
Key Margin Drivers: Growth
Our New Go-to-Market Strategy…
Key Margin Drivers: Pricing Power
Continue to Aggressively Drive Price to Offset Rapid Input Cost Inflation
$0
$10
$20
$30
$40
$50
$60
Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08$0
$20
$40
$60
$80
$100
$120
Price / Mix Energy / Raw Materials / Freight Avg. Oil Price Qtr.
$ millionsYear-over-Year Increase
~$125.00Today
11
Key Margin Drivers: Productivity
Increasing manufacturing efficiency
Leveraging strategic sourcing
Supply-chain initiatives
Asset optimization
12
2008• Accelerating small-tract sales • Begin value enhancement
2009 - 2010• Increasing small-tract sales• Continue enhancement activities
2008• Build development project pipeline • East Edisto entitlement process• Begin master planning other parcels
2009 - 2010• Near-term projects begin to generate cash • Secure East Edisto entitlements• Secure entitlements for other master plans
Retail Land Sales Program
Real Estate Development
Key Margin Drivers: Land Business
Why Invest in MWV?
Successfully transforming company to win and profitably grow in global packaging markets
Good progress on profitable growth initiatives to expand margins
Land strategy well on-track to deliver new, sustainable cash flows
Attractive dividend yield