InvestorPresentation Oct07

Slide1: 

Investor Presentation October 2007

Safe Harbor Statement: 

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 Company’s 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 Management’s 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 Company’s 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 Company’s 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.

Buckeye Overview: 

Buckeye Overview World leader in value-added cellulose-based specialty products 2007 Net Sales of $769.3 million

Buckeye Overview: 

Nonwoven Specialty Fibers Materials Fluff Pulp Chemical Cellulose Customized Fibers 34% 17% 33% 16% Wipes Femcare Baby Diapers Tire Cord LCD Screens Food Casings Ethers (Thickeners) Filters Currency Papers Table Top Buckeye Overview Developed and engineered to enhance products in specialized ways Specialty Fibers 66% Nonwoven Materials 34% UltraFiber 500®

Global Presence: 

Brazil Germany Switzerland Florida North Carolina Tennessee Canada / BC North America 43% South America 4% Other 6% Asia 9% Europe 38% Based on fiscal 2007 net sales 67% of sales outside US 75% of products produced in US Global Presence

Market Leader in Attractive Niches: 

Market Leader in Attractive Niches Source: LMC International, Lockwood-Post, Nonwovens World and Company Estimates

Business Strategy: 

Focus on technically demanding niche markets Develop and commercialize proprietary product innovations Strengthen long-term alliances with customers Provide our products at an attractive value Continue to reduce debt Grow our business Business Strategy

Business Strategy: 

Focus on technically demanding niche markets Stable demand Important to our customer’s products and processes Normally account for no more than 10-20% of customer’s cost structure Business Strategy Casings Cord Thin Films for LCDs

Business Strategy: 

Develop and commercialize proprietary product innovations Superior products Bring new products to market UltraFiber 500® Business Strategy Table Top

Business Strategy: 

Strengthen long-term alliances with customers Supplying some of our largest customers for more than 20 years Specified in our customer’s standards High risk in switching Business Strategy Filters Diapers

Business Strategy: 

Business Strategy Provide our products at an attractive value Cost reduction and efficiency improvement are priorities Concentrated production at most efficient facilities Implement Lean Enterprise methods throughout the organization Customized Paper Nonwoven Materials

Business Strategy: 

Long-term Debt Outstanding Operating Cash Flow Continue to reduce debt Since fiscal year 2002, reduced long-term debt by $255 million. Refinanced credit facility with $200MM bank revolver ($ in Millions) ($ in Millions) Business Strategy

Business Strategy: 

Grow Our Business Internal growth – new product and new markets Explore external growth opportunities Business Strategy

Historical Financial Summary: 

Net Sales ($ in millions) Adjusted EBITDA (a) (a) See Appendix for reconciliation of non-GAAP measures to related GAAP measures. ($ in millions) Historical Financial Summary

Fiscal 2007 Operating Results: 

Sales up $41 million Record Sales Year Higher selling prices across our business Fluff pulp market remains strong and prices continue to rise Lower shipment volume overall due to inventory reduction and Glückstadt plant closure in FY 2006. Nonwovens shipment volume up 5% in North America Fiscal 2007 Operating Results Net Sales ($ in millions) 6%

Fiscal 2007 Operating Results: 

Earnings per Share Earnings per share up $0.74 Higher Selling Prices Costs - Mixed Improved Americana Results Gross Margin 17.1% vs. 13.7% last year (> 20% in Q4) Reduced Interest Expense Fiscal 2007 Operating Results

Top Company Priorities: 

Top Company Priorities Implement Lean Enterprise Establish a foundation to grow revenue 5% annually Improve cotton business results

Top Company Priorities: 

Top Company Priorities Implement Lean Enterprise Focus on reducing waste and improving flow Change work culture to support a Lean Enterprise Protect and build our margins

Top Company Priorities: 

Marketing Team Bring new products to market on an accelerated schedule Improve marketing capability Increase speed of commercialization Market Opportunities UltraFiber 500® - Revolutionary concrete reinforcing fiber High-purity Cotton Cellulose in Liquid Crystal Displays (LCDs) Pipeline of products from renewable and environmentally favorable natural fibers Deliver New Products Top Company Priorities

Top Company Priorities: 

Product Characteristics Superior finishing (no fuzz) Excellent crack reduction Automated dispensing system Patent protected Commercialization Status Expect fiscal 2008 sales will about double vs. $5.5 million in FY2007 Expanding sales and distribution network globally Over 230 dispenser installations world-wide UltraFiber 500® - Revolutionary concrete reinforcing fiber Top Company Priorities Deliver new products (continued)

Top Company Priorities: 

High-purity Cotton Cellulose in Liquid Crystal Displays (LCDs) Characteristics of high-end LCD market Used in desktop monitors, notebook computers and LCD TV’s Experiencing rapid growth Advantages of triacetate films made with Buckeye’s cotton-based specialty fiber Preferred over petroleum-based product Provides excellent optical properties Small component of total LCD cost structure Top Company Priorities Deliver new products (continued)

Top Company Priorities: 

Top Company Priorities Establish a Foundation to Grow Revenue 5% Annually New Products Double UltraFiber500® sales LCD market growth Additional new products leveraging renewable natural fibers Explore External Growth Opportunities

Improve Cotton Business Results : 

Cotton fibers preferred fiber for many important niche markets Making good progress at Americana Near term – limited raw material availability Pursue alternate supply options to increase lint supply Improve Cotton Business Results Top Company Priorities

Our Strategy for Improved Profitability : 

Focus on technically demanding niche markets Improve volume and mix through the development of new product innovations and strengthening our long-term alliances Provide products at an attractive value by implementing Lean methods and capitalizing on our lower cost structure Grow our business with combination of internal and external opportunities Maintain our focus on debt reduction Our Strategy for Improved Profitability

Slide25: 

Non-GAAP Financial Measures

Slide27: 

Appendix