Filed by Consolidated Papers, Inc.
Pursuant to Rule 425 under the Securities
Act of 1933 and deemed filed pursuant to Rule 14-a-12
of the Securities Exchange Act of 1934
Subject Company: Consolidated Papers, Inc.
Commission File No.: 001-11359
[Slide Presentation given by Consolidated Papers and Stora Enso Oyj on March 13,
2000]
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 the companies ability to control
or estimate precisely, such as future market conditions, currency fluctuations,
the behavior of other market participants and the actions of governmental
regulators. These and other risk factors are detailed in Consolidated Papers'
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.
Consolidated Papers does not undertake any obligations 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 proxy
statement/prospectus regarding the business combination transaction between
Stora Enso and Consolidated Papers, when it becomes available, because it will
contain important information. The proxy statement/prospectus will be filed with
the Securities and Exchange Commission by Stora Enso and Consolidated Papers.
Investors and security holders may obtain a free copy of the proxy
statement/prospectus (when available) and other related documents filed by Stora
Enso and Consolidated Papers at the Commission's website at www.sec.gov. When
available, the proxy statement/prospectus and the other documents may also be
obtained from Consolidated Papers by contacting Consolidated Papers, Attn: Tim
Laatsch, Corporate Communications, 231 First Avenue North, Wisconsin Rapids,
Wisconsin, 52295-8050 and/or Stora Enso, Attn: Maija Harso, Investor Relations,
Kahavaranta 1, P.O. Box 309, FIN-00101 Helsinki, Finland.
<PAGE>
Consolidated Papers, its directors, executive officers and certain other members
of Consolidated Papers management and employees may be soliciting proxies from
Consolidated Papers shareholders in favor of the merger. Information concerning
the participants will be set forth in the proxy statement/prospectus when it is
filed with the Securities and Exchange Commission.
For Additional Information:
Jukka Harmala, CEO of Stora Enso, tel. +358 2046 21404
Esko Makelainen, SEVP, Accounting and Legal Affairs, tel. +358 2046 21450
Ingvar Peterson, SEVP, Chief Financial Officer, tel. +46 8 613 6600
Scott Deitz, Director of Public Affairs, tel. +715 422 1521
www.storaenso.com
www.storaenso.com/investors
www.consolidatedpapers.com
<PAGE>
[Slide 1]
CONSOLIDATED PAPERS, INC.
CASH FLOW FOR THE YEAR
----------------------
ENDED DECEMBER 31, 1999
-----------------------
(DOLLARS IN MILLIONS)
Capital Expenditures $159
Dividends (88(cent)/share/annually) 80
Earnings (73(cent)/share/annually) 66
"Real" Debt Reduction* 86
Plus Sale of Assets 25
Plus Working Capital Reduction 56
Total Debt Reduction 167
How?
Depreciation and Depletion 179
"Bare Bones" Maintenance
Capital Expenditures 60
*From Operating Cash Flow
<PAGE>
[Slide 2]
CONSOLIDATED PAPERS, INC.
COST REDUCTIONS FOR THE YEAR
----------------------------
ENDED DECEMBER 31, 1999
-----------------------
$44 MILLION
-----------
Material Substitution/Reduction $ 17
Staffing Reductions 4
Yield/Salable/First Line 7
Price Reductions (excludes pulp/wood) 6
Effluent Reduction 3
Energy 3
Productivity 2
Warehousing/Inventory 1
Staff Groups 0
Wood Cost Reductions 1
---
$ 44
<PAGE>
[Slide 3]
CONSOLIDATED PAPERS, INC.
BUDGED COST REDUCTIONS
----------------------
$86.1 MILLION - 2000 AND FORWARD
--------------------------------
Material Substitution/Reduction $ 16.5
Staffing Reductions 23.0
Yield/Salable/First Line 6.6
Price Reductions (excludes pulp/wood) 7.4
Effluent Reduction 1.7
Energy .48
Productivity 23.3
Warehousing/Inventory .6
Maintenance 6.0
Staff Groups 0
Other .2
Wood Cost Reductions .5
------
$ 86.1
<PAGE>
[Slide 4]
CONSOLIDATED PAPERS, INC.
TEN-YEAR CAPITAL SPENDING HISTORY
(DOLLARS IN MILLIONS)
Total % of
1990-1999 Total
--------- -----
New Paper Machine Projects
No. 16 Machine $ 468 22.1%
No. 34 Machine 79 3.7%
No. 35 Machine 176 8.3%
--- ----
Sub-Total New Paper Machines 723 34.1%
--- -----
High Return Projects
Normal Projects 162 7.6%
Grinder Room at Wis. River Div. 32 1.5%
No. 25 Rebuild - Biron Div. 79 3.7%
---- ----
Sub-Total High Return Projects 273 12.8%
--- -----
Normal Capital Spending 743 35.1%
Lease Buy-Outs
Niagara - PGW 35 1.7%
Lake Superior Paper Ind. - Equity 188 8.9%
--- ----
Sub-Total Lease Buy-Outs 223 10.6%
--- -----
Environmental Projects 134 6.3%
Capitalized Interest 24 1.1%
------ ------
Total Capital Spending 1990-1999 $2,120 100.0%
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