Filed by UPM-Kymmene Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Champion International Corporation
Commission File No.: 001-03053
[Presentation posted by UPM-Kymmene Corporation
on its web site on February 29, 2000]
[Slide 1]
These materials contain certain statements that are neither reported financial
results nor other historical information. These statements are forward-looking
statements within the meaning of the safe-harbor provisions of the U.S. federal
securities laws. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed in the forward-looking statements. Many of these risks and
uncertainties relate to factors that are beyond UPM-Kymmene's and Champion
International's ability to control or estimate precisely, such as future market
conditions, the behavior of other market participants and the actions of
governmental regulators. These and other risk factors are detailed in the two
companies' SEC reports. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of these
materials. The companies do not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or circumstances
after the date of these materials.
Investors and security holders are advised to read the joint proxy
statement/prospectus regarding the business combination transaction referenced
in the foregoing information, when it becomes available, because it will contain
important information. Such joint proxy statement/prospectus will be filed with
the Securities and Exchange Commission by UPM-Kymmene and Champion
International. Investors and security holders may obtain a free copy of the
joint proxy statement/ prospectus (when available) and other related documents
filed by UPM-Kymmene and Champion International at the Commission's website at
www.sec.gov. The joint proxy statement/prospectus and the other documents may
also be obtained from UPM-Kymmene by contacting UPM-Kymmene, Attn: Reko
Aalto-Setala, Etelaesplanadi 2, FIN-00101 Helsinki, Finland, and/or Champion
International by contacting Champion International, Attn: Tom Hart, One Champion
Plaza, Stamford, Connecticut 06921.
Champion International, its directors, executive officers and certain other
members of Champion International management and employees may be soliciting
proxies from Champion International shareholders in favor of the merger.
Information concerning the participants will be set forth in the joint proxy
statement/prospectus when it is filed with the Securities and Exchange
Commission.
[Slide 2]
[Table stating the following information:
Champion International UPM-Kymmene Corporation
Corporation
Key Figures
Turnover 1999 USD 5268 million EUR 8261 million
Personnel 18,000 31,000
Earnings USD 322 million EUR 1398 million
Paper Production Capacity 3.5 mill. tonnes 8.6 mill. tonnes
Pulp 3.1 mill. tonnes 2.9 mill. t
Plywood 1.2 mill. m3 0.8 mill. m3
Sawn Timber 3.9 mill. m3 2.0 mill. m3
Forests under management 4 mill. hectares 1.3 mill. hectares
Production in USA, Canada, Europe, USA, China]
Brazil
[Slide 3]
[Logo of post merger Champion International Corporation]
[Table stating the following information:
Worldwide ranking
Total worldwide sales EUR 13.5 bill. 3
Market capitalization EUR 13.4 bill. 2]
[Slide 4]
COMPLEMENTARY WORLDWIDE PRODUCT LINES - PULP AND PAPER
[Table stating the following information:
<TABLE>
<CAPTION>
In 1000 Europe N-America S-America Total
metric tons UPM Champion UPM Champion UPM Champion
<S> <C> <C> <C> <C> <C> <C> <C>
Publication Papers 5325 455 740 186 6706
LWC 2110 455 648 186 3399
SC 1200 92 1292
Newsprint 2015 2015
Business Papers 1950 1695 384 4029
Uncoated Fine Paper 1200 1225 384 2809
Coated Fine Paper 750 470 1220
Converting Materials 850 480 1330
Linerboard 372 372
Paper and board,
total 8125 455 2915 570 12065
Chemical pulp, total 2900 2794 340 6034
Paper, board and
pulp, total 11025 455 5709 910 18099]
</TABLE>
[Slide 5]
COMPLEMENTARY WORLDWIDE PRODUCT LINES - FORESTS & WOOD PRODUCTS
[Table stating the following information:
<TABLE>
<CAPTION>
Europe N-America S-America Total
UPM Champion UPM Champion UPM Champion
<S> <C> <C> <C> <C> <C> <C> <C>
Sawn Timber 2000 3851 5851
1000 cubic
metres
Plywood 850 1181 2031
1000 cubic
metres
Forestlands 1266 77 2023 612 3978
million
hectares
Owned 933 77 1842 546 3398
Managed
or controlled 333 181 66 580]
</TABLE>
[Slide 6]
Pooling of interests
o no goodwill
o strong balance sheet preserved
o limitations for asset sales in the near future
(excluding listed shares)
o treasury shares to be re-issued (appr. 3 million*)
o share buy-backs not possible in the near future
*)press release Feb 22, 2000
[Slide 7]
ACCRETION ANALYSIS
Market Estimates for EPS (I.B.E.S.) in 2001
[Table reflecting the following information:
UPM-Kymmene USD 3.41
Champion USD 7.07
Champion
with synergy benefits
of USD 150 million USD 3.65
Accretion USD .24
% 7.1%
The merger will be earnings accretive one year from the closing of the deal.]
[Slide 8]
SYNERGIES
[Table reflecting the following information:
2000 2001 2002 2003
Cumulative Synergies MUSD
A. Cost Savings 25 150 175 175
o purchasing
o manufacturing
o logistics
o S, G&A
B. Revenue related synergies 0 75 125 150
o best practice in marketing
o additional volumes
Total 25 225 300 325]
[Slide 9]
Strategy
o increase shareholder value as principal goal
o focus on core businesses
o intensive co-operation with global and local customers
o emphasis on profitability
o financial discipline
o responsible corporate citizen
o take advantage of global growth opportunities
[Slide 10]
ENTERPRISE VALUE OF SELECTED PAPER COMPANIES
[Bar graph representing the following information :
Market Value (USD) Net Debt (USD)
International 17676 11837
StoraEnso+Cons. 12964 6685
CHAMPION 13164 5247
Weyerhaeuse 12099.4 4211
Georgia-Pacific 9504.9 5546
Smurfit-Stone Con 3686.7 5965
SCA 5846.8 2823.1
Williamette 4155.6 1706.1
Jefferson Smurfit 2851.2 2139.3
Mead 3419.3 1498.6]
[Slide 11]
WORLD'S LARGEST FOREST PRODUCT COMPANIES BY NET SALES
[Bar graph representing the following:
Net Sales USD billions
International Paper 24.6
Georgia Pacific 17.8
CHAMPION 13.5
Stora Enso + Cons. 12.5
Weyerhauser 12.3]
[Slide 12]
WORLDS LARGEST PAPER AND PAPER BOARD PRODUCERS 2000
Paper Paperboard
Stora Enso + Consolidated Papers 11.2 3.57
International Paper 7.1 6.6
CHAMPION 11.6 .3
Abitibi-Consolidated 7.2
Smurfit-Stone Container .1 7.1
Georgia Pacific 3.2 3.6
Oji Paper 5 1.7
Nippon Group 4.9 1.7
Weyerhauser 1.9 3.8
Metsa-Serla Myllylkoski 4.4 1.25]
[Slide 13]
WORLDS LARGEST PUBLICATION PAPER PRODUCERS
[Bar graph representing the following:
LWC SC News
Stora Enso + Consolidated 2540 1370 3175
Abitibi Consolidated 724 6330
CHAMPION 3399 1292 2015
Bowater 475 2955
Norske Skog 540 2250
Haindl 810 560 1350
Metsa-Serla, Myllykoski 1280 777
Holmen 150 1210
Burgo 1215
International Paper 540
Mead 535
Repap 450]
[Slide 14]
WORLDS LARGEST FINE PAPER PRODUCERS 2000
[Bar graph representing the following:
Uncoated Coated
capacity, in '000 tons
International Paper 4010 680
CHAMPION 2600 1330
Stora Enso + Consolidated 1340 2450
APP 2330 1250
Sappi 430 2815
Georgia Pacific 1955 55
MoDo + SCA 1240 500
Oji Paper 850 850
Metsa-Serla 525 1015]
[Slide 15]
LEADER POSITIONS IN OTHER CHOSEN PRODUCTS
[Table stating the following information:
Europe Global
Converting Materials
Label Papers and self-adhesive label 1 2
Siliconized papers 1 1-2
Industrial wrapping 1 --
Envelope papers 1 --
Wood Products
Plywood 1 4
Sawn Timber 3 5]
[Slide 16]
SALES BY BUSINESS 1999 (PROFORMA)
[Pie chart reflecting the following information:
Magazine 24%
Newsprint 8%
Fine papers 21%
Converting 15%
Wood Products 16%
Chemical pulp 4%
Forest 4%
Other 8.0%]
[Slide 17]
PAPER, BOARD & PULP PRODUCTION GEOGRAPHICALLY, % in 1999 (Proforma)
[Pie charts reflecting the following information:
Finland 43%
Other Europe 14%
North America 38%
South America 6%]
[Slide 18]
OPERATING PROFIT (PROFORMA)
[Bar graph reflecting the following information:
Capital Gains Write-offs
(in MEUR)
1997 1130 -504
1998 1354 49
1999 1442 614]
[Slide 19]
NET INTEREST-BEARING DEBT AND GEARING (PROFORMA)
[Bar graph reflecting the following information:
Debt Gearing
97 7221 96
98 6229 81
99 5278 63]
[Slide 20]
RETURN ON EQUITY (PROFORMA)
[Bar graph reflecting the following information:
97 7.5
98 9.7
99 9.7]
[Slide 21]
RETURN ON CAPITAL EMPLOYED (PROFORMA)
[Bar Graph reflecting the following information:
97 7.2
98 9.2
99 10.1]
[Slide 22]
EQUITY TO ASSETS RATIO (PROFORMA)
[Bar graph reflecting the following information:
97 37.9
98 41
99 42.8]
[Slide 23]
GROSS CAPITAL EXPENDITURE (PROFORMA)
[Bar graph reflecting the following information:
Depreciation % of turnover
97 1747 928 12.7
98 1076 917 8.1
99 927 921 6.9]
