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November 1920, 2009

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Forward-looking statements include information concerning possible or assumed ... Debt-to-Capital1. 1 LT Debt / (LT Debt Stockholders' Equity) 11. Net Sales ... – PowerPoint PPT presentation

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Title: November 1920, 2009


1
INVESTOR PRESENTATION MIDWEST ROAD SHOW
November 19/20, 2009
Focused on Higher Value Products
2
Safe Harbor Statement
  • These slides and the accompanying presentation
    contain forward-looking statements.
    Forward-looking statements include information
    concerning possible or assumed future results of
    operations, capital expenditures, the outcome of
    pending legal proceedings and claims, goals and
    objectives for future operations, including
    descriptions of the Companys business strategies
    and purchase commitments from customers, among
    other things. These statements are typically
    identified by words such as believe,
    anticipate, expect, plan, intend,
    estimate and similar expressions. Management
    bases these statements on particular assumptions
    made in light of industry experience, as well as
    Managements perception of historical trends,
    current conditions, expected future developments
    and other factors that Management believes are
    appropriate under the circumstances. These
    statements are not guarantees of performance or
    results and involve risks, uncertainties and
    assumptions. Although Management believes that
    these forward-looking statements are based on
    reasonable assumptions, many factors could affect
    the Companys actual financial results or results
    of operations and could cause actual results to
    differ materially from those expressed in the
    forward-looking statements. These factors
    include, among other things, cyclical changes in
    the demand for some of the Companys products
    changes in pricing policies by the Company or its
    competitors changes in the cost of labor, energy
    and other manufacturing costs debt levels the
    size and timing of significant orders changes in
    operating expenses or the need for additional
    capital expenditures changes in corporate
    strategy and general economic conditions. In
    light of these risks and uncertainties, there can
    be no assurance that the results and events
    contemplated by the forward-looking statements
    contained in these slides and the accompanying
    presentation will in fact transpire.

3
COMPANY OVERVIEW
4
Specialty Cellulose Nonwovens Producer
  • Buckeye is the only manufacturer in the world
    that produces high-end, specialty cellulose
    products out of both cotton and wood
  • Were also the largest airlaid nonwovens producer
    in the world
  • Weve been growing sales and earnings, and right
    sizing our balance sheet since 2002
  • Were well positioned to emerge from this
    downturn as a stronger company

5
Unique Assets
  • Perry, FL
  • 1 of 2 Specialty Wood Pulp mills of its kind in
    the world
  • Infrastructure ideal for specialty chemical and
    renewable energy production
  • Memphis, TN
  • Worlds largest Cotton Cellulose mill
  • Highly specialized fibers suitable for
    applications like specialty cotton papers and LCD
    displays
  • Airlaid Nonwovens Sites
  • Worlds largest Airlaid Nonwovens machine
  • Leader in airlaid material for wet wipes, a
    growing market in North America, and table top
    products in Europe

6
High End Specialty Focus
Total Pulp Market Worldwide (Captive Market -
2007)
  • Our focus
  • Higher purity (alpha) cellulose
  • Technically demanding
  • More price stability

7
Diverse Product Mix
  • 1 market share in a number of attractive niches
    like tire cord, sausage casings, filtration,
    specialty cotton paper and airlaid nonwovens

Based on fiscal 2009 Net Sales
8
Diverse End Markets
  • Diversity of end market applications provides
    numerous growth opportunities

9
Geographic Diversity
  • 66 of sales outside US
  • 78 of sales produced in US

Tennessee
North Carolina
Europe 34
Florida
Canada / BC
Asia 14
North America 45
Beijing
South America 4
Other 3
Brazil
Based on fiscal 2009 Sales
10
Revenue Earnings Growth
  • Grew revenues 30 from 2002 to 2008
  • Record 1st quarter in FY09 then impacted by
    recession
  • Higher base levels then last recession (2002)

CAGR 3.8
  • Significant margin improvement from 2002 to 2008
  • Drivers improved sales mix, pricing
    rationalized capacity
  • Focus on Lean Enterprise

11
Focus on Debt Reduction
  • Used free cash flow to reduce debt by 58 since
    2002
  • New debt target of 275mm by 06/30/2010

12
No Near Term Debt Maturities
  • Retired remaining 110mm of 2010 bonds 14 months
    early
  • Nearest maturity due in 2012

13
BUSINESS STRATEGY
14
Near Term Goals
  • Near Term Goals
  • Continue to reduce debt and lower interest
    expense
  • Improve wood specialty mix
  • Take advantage of rising fluff pulp prices
  • Utilize idle capacity in cotton and nonwovens and
    take advantage of market recovery and growth

15
Sustainability Goals
  • By the year 2015 we intend to
  • Reduce our fossil fuel usage by 10
  • Reduce our use of purchased electricity by 25
  • Reduce our greenhouse gas emissions from fossil
    fuels and purchased electricity by 15
  • Reduce water usage by 5

(Measured on a per ton basis using 2007 as the
baseline year)
16
Renewable Energy Progress
  • Fossil Fuel use reduced by 11 since 2003
  • Biomass supplied 80 of Buckeyes total energy
    requirements in 2008

17
Awards Recognition
  • Received American Forest and Paper Associations
    2009 Environmental Excellence Award for Foley
    Plants San Pedro Bay Wetlands Mitigation Project
  • Foley won Floridas 2009 Green to Gold award
    for its leadership in sustainable practices
  • Finalist for 2 Pulp and Paper International 2009
    Excellence Awards
  • Foley Plant Energy Independence Project
  • Memphis Plant Energy Improvement Project

18
Long Term Goals
  • Long Term Goals
  • Organic Growth
  • Earn returns greater than the cost of capital
  • Earn gross margins greater than 20
  • Balanced application of capital focused on debt
    reduction and high return investments
  • Bio energy and specialty chemical opportunities
    at Foley

19
Florida Site Energy Vision
20
Bio Refinery Model
Power
Gasifier
Gas Cleanup
Gas Turbine
Waste Heat
Waste Heat
Biorefinery
Pulp Mill
Biomass
Waste/Process Streams
Biofuels
Biopolymers
Pulp
21
Experimenting With Biomass
Cottonwood
Energy Cane
Eucalyptus
22
Summary
  • Substantially reduced debt burden, with debt
    repayment still a top priority
  • Lower interest expense, and lower overall cost
    structure as a result of Lean Enterprise
  • Opportunities to grow Sales and Earnings by
  • Improving wood specialty mix and taking advantage
    of rising fluff pulp prices as markets pick up
  • Utilizing idle capacity in cotton and nonwovens
  • Investing in high return projects like the Foley
    energy and other bio energy related projects

23
APPENDIX
24
Plant Capacities
Nonwoven Material totals based on current
product mix. Excludes converting facility in
King, North Carolina which currently produces
900,000 cases of tissue/toweling products.
25
Specialty Fibers
  • Grew revenues 22 from 2003 to 2008
  • Mix and sales price impact in 2009 as a result of
    the recession

CAGR 4.1
  • Significant margin improvement 2003 to 2008
  • Sales mix and rationalization of capacity key
    contributors
  • 2009 earnings impacted by recession
  • Income of 54mm in 2009 and 36mm YTD 2010 from
    Alternative Fuel Mixture Credits (not included)

26
NonWoven Materials
  • Grew revenues 35 from 2003 to 2008
  • Sequential unit volume growth 2003 to 2007,
    mainly a result of growing North American wet
    wipes market
  • End markets growing

CAGR 5.1
  • Significant margin improvement 2003 to 2007
  • Result of rationalization of capacity and
    increased plant utilization
  • 2008 drop due to temporary loss of business with
    long time customer in Q3 (60 recovered by end Q4)

27
Specialty Wood Pulp Market
2007 Global Specialty Wood Output 3,431m MT
28
Global Fluff Pulp Market
2008 Global Fluff Output 4.5mm MT
29
Non GAAP Reconciliations
30
(No Transcript)
31
Company Contacts
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