tin8kex9920110214.htm

Investor Presentation

February 2011

This presentation contains “forward-looking statements” within the meaning of the federal
securities laws. These statements reflect management’s current views with respect to future events
and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could
cause our actual results to differ significantly from the results discussed in the forward-looking
statements. Factors and uncertainties that might cause such differences include, but are not limited
to: general economic, market, or business conditions; the opportunities (or lack thereof) that may be
presented to us and that we may pursue; fluctuations in costs and expenses including the costs of
raw materials, purchased energy, and freight; changes in interest rates; demand for new housing;
accuracy of accounting assumptions related to impaired assets, pension and postretirement costs,
contingency reserves and income taxes; competitive actions by other companies; changes in laws
or regulations; our ability to execute certain strategic and business improvement initiatives; the
accuracy of certain judgments and estimates concerning the integration of acquired operations and
other factors, many of which are beyond our control. Except as required by law, we expressly
disclaim any obligation to publicly revise any forward-looking statements contained in this
presentation to reflect the occurrence of events after the date of this presentation.

This presentation includes non-GAAP financial measures. The required reconciliations to GAAP
financial measures are included on our website, www.templeinland.com.

Create Superior and Sustainable Value

• Maximize ROI

• Profitably grow our business

Scorecard

• Maximize ROI ® 8.2% TIN ROI

– Corrugated Packaging ® 16.5% ROI

• Record ROI in 2009 and 2010

• Fifth consecutive year of above cost of capital returns

– Building Products ® (3.8)% ROI

• Positive EBITDA of $22 million, up $5 million from 2009
despite continued historic lows in housing

• Significantly outperformed peers

New Temple-Inland
(January 2, 2008 to February 1, 2011)

Source: Bloomberg

Temple-Inland Value Creation

Return on Sales (EBIT/Sales)

X • Returning Cash to Shareholders

Sales/Investment (Assets) • Reducing Debt

• Investing in our Businesses

= Return on Investment (Assets) • Profitably Growing our Company

Operations Capital Allocation

Value

Creation

Corrugated Packaging Strategic Initiatives

• Maintain high integration level

- Box plant consumption = mill capacity

• Drive for low cost

- Asset utilization and manufacturing excellence

• Improve mix and margins

- Sales excellence

• Profitably grow business

- Organically / Acquisition

Lowering Costs, Improving Efficiencies and Growing Profitably

Integration Level - Highest in the Industry

Source: Company reports

Temple-Inland is the most integrated producer of corrugated containers

Drive For Low Cost

• Lower mill cost

• Lower box plant cost

Corrugated Packaging Strategic Initiatives

• Drive Low Cost and Increase Asset
Utilization

– Fewer Plants

– Fewer Machines

– Fewer People

• Improve Mix & Margins

Lower cost and higher margins

Box Plant Transformation I

• EBIT (Lower Costs) $80MM/Year

– Fewer Plants 4

– Fewer Machines 88

– Fewer Positions 1,157

• Investment $174MM

• ROI 46%

Complete

Box Plant Transformation I lowered costs by $10 million in 2010

Box Plant Transformation II

• EBIT (Lower Costs) $100MM/Year

– Fewer Plants 12

– Fewer Machines 65

– Fewer Positions 900

• Investment $250MM

• ROI 40%

Box Plant Transformation II lowered costs by $10 million in 2010

Box Plant Transformation

Box Plant Transformation will reduce cost by $180 million

348

194

7,911

5,837

2006 Pro-Forma 2013

(24%)

(44%)

(26%)

Improve Mix and Margins

• Customer segmentation

• Target richer segment of customer
portfolio

Corrugated Packaging
Comparative Peer Group EBIT Margin (ROS)

Notes: (1) EBIT excludes special items - For TIN and IP as reported by segment; for PCA, Gross Profit-selling and administrative expenses; for SSCC, for
containerboard, corrugated containers and reclamation operations

(2) Adjustments to EBIT - For SSCC, beginning in 2007, working capital interest was no longer charged to operations. Based on restatement of 2006 and
2005 data, EBIT is adjusted upward by $70 million for the years 2004 and 2003.

(3) Restatements - Most recent reported data used to replace prior data, as reported, when available.

Source: For TIN, Corrugated Packaging actual capital spending and depreciation. For PCA, total company capital spending and depreciation for 2003-2009. In 2010, capital spending as reported
with 9 month depreciation annualized. For SSCC, total company capital spending and depreciation as reported. For IP, Industrial Packaging as reported in 2003-2009. In 2010, Industrial
Packaging capital spending and depreciation estimated as a percent of Industrial Packaging to total company capital spending and deprecation in 2009.

Corrugated Packaging
Comparative Peer Group Sales (Revenues) / Assets

Notes: (1) Sales - For TIN and IP as reported by segment; for PCA, consolidated Net Sales; for SSCC, Net Sales for containerboard, corrugated containers
and reclamation operations

(2) Assets (beginning of year) - For TIN and IP as reported by segment adjusted for acquisitions made in Q3 2008; for PCA, consolidated Total Assets; for
SSCC, consolidated Total Assets excluding Consumer Packaging prior to 2007. On January 26, 2009 SSCC filed for Chapter 11 Bankruptcy and
emerged on June 30, 2010. For 2010, the Successor Total Assets (after adjustments for the Plan of Reorganization and Fresh Start) is used. For 2009,
the Successor Total Assets, adjusted for actual cash and cash equivalents is used.

(3) Restatements - Most recent reported data used to replace prior data, as reported, when available.

Corrugated Packaging
Comparative Peer Group Returns (ROA)

(3) Assets (beginning of year) - For TIN and IP as reported by segment adjusted for acquisitions made in Q3 2008; for PCA, consolidated Total Assets; for
SSCC, consolidated Total Assets excluding Consumer Packaging prior to 2007. On January 26, 2009 SSCC filed for Chapter 11 Bankruptcy and
emerged on June 30, 2010. For 2010, the Successor Total Assets (after adjustments for the Plan of Reorganization and Fresh Start) is used. For 2009,
the Successor Total Assets, adjusted for actual cash and cash equivalents is used.

(4) Restatements - Most recent reported data used to replace prior data, as reported, when available.

Constructive Fundamentals

• Low inventories

• High operating rates

• Positive demand

• Improved pricing

Source: Fibre Box Association and AF&PA

Inventories remain at very low levels

Rising Industry Operating Rates
and Low Inventories

Improving Box Demand

Source: Fibre Box Association and Institute for Supply Management

Improved Linerboard Pricing

Linerboard prices rose 21% in 2010

Source: Pulp and Paper Week

Corrugated Packaging Summary

• Simple, consistent strategy…execution drives
results

• Track record of success… much more to come

• Fundamentally changed industry

Building Products Strategic Initiatives

• Deliver tailored portfolio of building products

– Products for new home, repair and remodeling
and commercial markets

• Drive low cost

– Manufacturing excellence

• Serve preferred markets

– Favorable demographics

• Profitably grow business

Tailored Products

Low Cost Operations

Buna

Pineland

Diboll

Rome

DeQuincy

Lumber

Competitive

Position

1st

Quartile

2nd

Quartile

3rd

Quartile

4th

Quartile

Gypsum

Competitive

Position

Cumberland

Fletcher

W. Memphis

McQueeney

Panels

Competitive

Position

Monroeville

Hope

Diboll

Thomson

MDF

El Dorado

Mt. Jewett

80% of Building Products operations are in lowest cost quartile

1st

Quartile

2nd

Quartile

3rd

Quartile

4th

Quartile

1st

Quartile

2nd

Quartile

3rd

Quartile

4th

Quartile

Source: Beck & RISI studies and internal analysis

Favorable Locations

Mt. Jewett

Cumberland City

West Memphis

Fletcher

El Dorado

Hope

Rome

Thomson

Pineland

Diboll

Monroeville

DeQuincy

Buna

McQueeney

Canadian Lumber Fundamentals

Source: Wood Markets

Building Products EBITDA Trends

Housing Starts

TIN EBITDA

2006

2007

2008

2009

2010

$17

$22

Financial Priorities and Capital Allocation

• Return cash to shareholders

– Maintained dividend through economic
downturn

– Increased dividend 10% in 2010

– Increased dividend 18% in 2011

• Reduce debt

• Invest in our business

• Profitably grow

Appendix

Year-End 2010 Debt Structure

Total Debt

$718

Borrowings Under

Committed Credit

Facilities

$178

Term Debt

$540

($ In Millions)

Term Debt Maturity Profile

Term debt

($ In Millions)

Total Term Debt = $540MM

Year-End, 2010
Committed Credit Facilities

Accounts

Receivable Committed

Securitization Credit

Facility Agreements Total

Committed $ 250 $ 710 $ 960

Less:

Borrowings (153) (25) (178)

Letters of credit - (16) (16)

Unused borrowing capacity $ 97 $ 669 $ 766

Facility Maturities Oct, 2013 June, 2014 ($600MM revolver)

Covenants (as specifically defined):

Debt/total capital 40.2% 65% Max

Interest coverage * 8.7x 3.0x Min

* Best 4 out of 5 trailing quarters

4Q/2010 = 8.1x

($ In Millions)