Bill Stankiewicz Copy Graphic Packaging 2011 External
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Shippers Warehouse, Inc. is a provider of supply chain services (3rd party logistics or 3PL). The Company operates over 4.5 million square feet in 8 facilities in the Dallas/Ft. Worth area and 500,000 ...

Shippers Warehouse, Inc. is a provider of supply chain services (3rd party logistics or 3PL). The Company operates over 4.5 million square feet in 8 facilities in the Dallas/Ft. Worth area and 500,000 square feet in Atlanta, Georgia.
The Georgia facility packaging operations ships out over 3 billion bags per year. Shippers Warehouse is one of the largest co-packers in the Southeast. Shippers operate 9 packaging lines with a ready room that is a showcase for reducing any type of foreign matter. The facility handles a variety of food products, is a leader in recycling, & distribution of products.
Shippers Warehouse, Inc. also has the distinction of having all of its locations ISO 9001:2008 certified. (ISO 9001:2008 certified by Management Certification of North America, an ANAB-accredited certification body.)

Regards,

Bill Stankiewicz
Vice President & General Manager
Shippers Warehouse
Office: 678.364.3475
williams@shipperswarehouse.com
www.shipperswarehouse.com

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Bill Stankiewicz Copy Graphic Packaging 2011 External Presentation Transcript

  • 1. Baird 2010 Industrials Conference November 9th, 2010This information is confidential and proprietary to Graphic Packaging International, Inc. Any reproduction or distribution to any third party is prohibited. © 2010 Graphic Packaging International, Inc.
  • 2. Forward Looking Statements Any statements of the Company’s expectations in this presentation constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements, including but not limited to, market trends and debt reduction, are based on currently available i f tl il bl information and are subject t various risks and uncertainties th t could cause actual results t diff materially f ti d bj t to i i k d t i ti that ld t l lt to differ t i ll from the Companys present expectations. These risks and uncertainties include, but are not limited to, the Company’s substantial amount of debt, inflation of and volatility in raw material and energy costs, volatility in the credit and securities markets, cutbacks in consumer spending that could affect demand for the Company’s products or actions taken by our customers in response to the difficult economic environment, continuing pressure for lower cost products, the Company’s ability to implement its business strategies, including productivity initiatives and cost reduction plans, currency movements and other risks of conducting business internationally, and the impact of regulatory and litigation matters, including the continued availability of the Company’s net operating loss offset to taxable income, and those that impact the Company’s ability to protect and use its intellectual property. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements. Additional information regarding these and other risks is contained in the Companys periodic filings with the SEC. © 2010 Graphic Packaging International, Inc. 2
  • 3. Company Overview • Leading producer of innovative packaging solutions for a globally consolidating consumer g g goods industry y • Largest folding carton manufacturer in the U.S. • Vertically integrated / value added supplier • Worldwide manufacturing presence…. US, Canada, Mexico, Europe, Asia Pacific and Brazil • NYSE listed with equity market cap of ~$1.2 billion* li t d ith it k t f $1 2 billi * • LTM 9/30: Revenues of ~$4.1 billion Cash provided by operations ~$355 million $355 Adjusted EBITDA margin of 13.9%See Appendix attached hereto for additional information and a reconciliation of Non-GAAP measures.* As of 10/26/2010 © 2010 Graphic Packaging International, Inc. 3
  • 4. Two Primary Business Areas Industry Paperboard Packaging End UsePaperboard Packaging Health & Soap/Laundry Beauty 2%• 84% of total sales 2% Other Beverage Carriers 8% Food Services 33%• C Concentration i f d & b t ti in food beverage end d 5% markets• Vertically integrated network of 38 converting facilities and 7 mills (over 80% integrated) Dry Foods 29% Frozen Foods 21% Industry Multi-Wall & Specialty End UseMulti‐Wall Bag & Specialty PackagingM lti W ll B & S i lt P k i Other Minerals 11% 10%• 16% of total sales Agriculture Chemicals and Foods 41%• #1 US market share position of ~34% 10%• Concentration in agriculture, pet and building supply end markets Pet & Pet Care• 18 manufacturing facilities (17% integrated) 11% Building Materials 17%–Source: Company filings, presentations and Mgmt estimate. –Source: RISI, PSSMA, and Mgmt estimate. © 2010 Graphic Packaging International, Inc. 4
  • 5. Key Products and Customers Food Household and Personal Care Multiwall Beverage Labels Specialty Plastics Microwave Machinery ac e y © 2010 Graphic Packaging International, Inc. 5
  • 6. Core Strategic Initiatives1 2 3 Optimize Grow Build Our Core Business By Leveraging Our Strengths The Right Execution Culture • Industry Consolidation • Macro Economic Factors • Productivity/Execution • Focus on Food & • Recycling an Important • Positive Momentum Beverage Concern • EBITDA & Margins • Low Cost Supply Chain • New Product Innovations • Cash Flow • Geographic Expansion • Net Debt Reduction • Improve Leverage Ratios Utilize All A Utili Assets t Expand Our Sources of C t to E dO S f Competitive Ad titi Advantage t © 2010 Graphic Packaging International, Inc. 6
  • 7. Industry Consolidation Top 5 Market Share Increased to 68% in 2008 from 44% in 2001 North American Folding Carton Market MeadWestvaco Rock-Tenn 11% Rock Tenn Rock-Tenn MeadWestvaco IP 7% Other 12% Other 9% 7% 51% IP 32% 8% Riverwood 5% Graphic Cascades 13% 5% Graphic p Smurfit Stone Packaging 8% 32% 2001 2008Source: Goldman Sachs, Paperboard Packaging Council, and management estimates © 2010 Graphic Packaging International, Inc. 7
  • 8. Focus on Historically Stable Food &Beverage Markets 2009 vs. 2008 Year-Over-Year Change in Spending + 0.6% 0.6% + 0.3% Food Grocery & - 0.3% Services & Liquor - 0.6% General Drinking Sporting Merchandise Goods, Hobbies, - 3.4% Books & Clothing Music - 6.2% Total Retail - 8.0% % & Food. Services Electronics, - 11.1% Appliances Furnishings - 12.1% Auto Consumer Trends Shift to “Take-Home” Products • Buying less • Dry dinner mixes up 6% • Buying more basic/necessity items • Frozen pizza up 3% • Trading down to private label • Refrigerated products up 4% • Making fewer shopping trips • Domestic beer up 1%Source: A.C. Nielsen and US Bureau of Labor Statistics © 2010 Graphic Packaging International, Inc. 8
  • 9. Supports Building a Low Cost SupplyChain for National Accounts Consumer Products: Cereal Low Cost Mills Industry Average Cash Cost h Beverage: Beer Combined operations yields board from the lowest-cost mills in the U.S. to low cost converting plants t ti l tSource: Bain Consulting © 2010 Graphic Packaging International, Inc. 9
  • 10. And a Responsive Supply Chain forRegional Food and Consumer Accounts Midwest Region/Private Label East Region/Private Label • Meat • Confectionary • Facial tissue • Bakery • Frozen Foods • Meat • Dairy/Ice Cream • QSR/Food Service West Coast Region/Private Label • Facial tissue • Raisins • Frozen Foods • Soap & Detergent Centrally Managed Support Functions Locally Managed Support Functions GPI Facilities • Overall demand/capacity balance • Customer Service Regional • Raw Material Planning & Procurement g • Sales • Graphics/Prepress Support • Manufacturing Paperboard Mill • Field Technical Service © 2010 Graphic Packaging International, Inc. 10
  • 11. Core Strategic Initiatives1 2 3 Optimize Grow Build Our Core Business By Leveraging Our Strengths The Right Execution Culture • Industry Consolidation • Macro Economic Factors • Productivity/Execution • Focus on Food & • Recycling an Important • Positive Momentum Beverage Concern • EBITDA & Margins • Low Cost Supply Chain • New Product Innovations • Cash Flow • Geographic Expansion • Net Debt Reduction • Improve Leverage Ratios Targeting the Right T T ti th Ri ht Trends and Markets to Enhance Market Share d dM k t t E h M k t Sh © 2010 Graphic Packaging International, Inc. 11
  • 12. Macro Economic Factors have ImpactedConsumer Purchasing Trends … Declining GDP per Household High Unemployment Blue Collar: 14% White Collar: 4.5% 84% “I am looking closely at every spending Customers are category to see where I can save”spending cautiouslyand are fo d e focused o ed on savings 65% “I am eating at home more often” 93% “I expect to continue spending cautiously even when the economy improves” Customers are “I am more open to trying private store brands gravitating toward 84%private label products products p od cts that I was two years ago” as t o ea s in order to save © 2010 Graphic Packaging International, Inc. 12
  • 13. Recycling is Also an Important Concernfor Packaged Beverages Companies… …Followed by the Use of Renewable Resources!Source: BeveragePulse.com, July 2010 g , y © 2010 Graphic Packaging International, Inc. 13
  • 14. New Product Technology Focused onThese Consumer TrendsConsumer Convenience: Active consumer, grab and go Microwave +10% • Fills fast convenient meal option needs of consumers • Major solutions launched at Nestle, Heinz and Kraft Multipack experience double digit growth • US energy drink multipack share has reached 70% • Successful international launches in Poland, Mexico, China and BrazilValue and Cost Reduction: Cost reduction; substitution • Z fl te replacing corrugated and plastics + 20% Z-flute corr gated • Significant growth in Club Store channelBrand B ildi Differentiating i a crowded spaceB d Building: Diff ti ti in d d Labels • Patented HTL technology Sustainability…newest key trend © 2010 Graphic Packaging International, Inc. 14
  • 15. International Presence is Growing Strategic Presence In All Key GeographiesMexico USA / Canada• Opportunity to leverage Altivity • Dominant market share China Chi carton plant with local accounts • Low cost producer • Established office in 2006 • Structured a joint venture in 2008 Europe • Refocused strategy to focus on higher margin applications Japan p • 90% share of beer market Brazil • Beverage and folding Australia A t li carton applications • Continued expansion with beverage folding carton applications © 2010 Graphic Packaging International, Inc. 15
  • 16. With New Products Around the World… Asia Pacific: Glass remains important but has markedly weakened by PET and Beverage Cans; Liquid Carton posted significant unit gains Western Europe: Beverage Can gains at the expense of Glass; Environment concerns are favorable to paperboard vs. plastic 16 16
  • 17. Core Strategic Initiatives1 2 3 Optimize Grow Build Our Core Business By Leveraging Our Strengths The Right Execution Culture • Industry Consolidation • Macro economic Factors • Productivity/Execution • Focus on Food & • Recycling an Important • Positive Momentum Beverage Concern • EBITDA & Margins • Low Cost Supply Chain • New Product Innovations • Cash Flow • Geographic Expansion • Net Debt Reduction • Improve Leverage Ratios Culture D i C lt Drives O Operations and C h t Reduce Cost of Business ti d Cash to R d C t fB i © 2010 Graphic Packaging International, Inc. 17
  • 18. Driving Productivity Through Better “Execution” GPK Built Strong Continuous Improvement Culture via Six Sigma……Lean Sigma and Policy Deployment Enhance Continuous Improvement Culture Continuous Improvement Cost Reductions C ti I t C t R d ti $60‐$80 $70 $64 $ Millions $47 $46 2006 2007 2008 2009 2010 Target“Why Lean ? Why Lean”? - Improves Working Capital - Tools to Optimize Value Streams - Increase Shop Floor Involvement - Increases “Horizontal” Culture © 2010 Graphic Packaging International, Inc. 18
  • 19. Positive Momentum in 2010 Results Q3 Net Sales (YoY) YTD Q3 Net Sales (YoY)$1,200 $3,500 $3,300$1,125 $3,117.2 $3,083.4 $13.6 $3,100 $1,054.2 ($19.1) $0.2 $1,042.8 ($5.9) ($4.7) ($4.1)$1,050 ($13.5) ($11.7) $2,900 $975 $2,700 $900 $2,500 Q3 09 Price Volume Mix Other Q3 10 Q3 YTD 09 Price Volume Mix Other Q3 YTD 10 Q3 Adjusted EBITDA (YoY) YTD Q3 Adjusted EBITDA (YoY) $180 $490 $13.6 $460 $109.3 $441.2 ($3.6) $160 $432.7 ($4.5) $155.1 $430 $36.4 $1.8 $151.3 ($19.1) ( ($1.7) ) $400 $140 $370 $340 $120 ($75.5) $310 ($52.0) $280 $100 YTD 2009 Price Volume/Mix Inflation Perform Other YTD 2010 Q3 2009 Price Volume/Mix Inflation Perform Other Q3 2010 © 2010 Graphic Packaging International, Inc. 19
  • 20. Cost Reduction + Integration = Margin Expansion Pro Forma Adjusted EBITDA Margin Integration savings ~$150 million a year Continuous Improvement savings $60 - 16.7% 13.6% 15.8% $80 million per year 9.0% 8.2% 7.3% 7 3% Industry leading EBITDA Margins 2008 2009 YTD Sept 2010 Paperboard Packaging Specialty/MWB Total Company Quarterly Adj. EBITDA Margin  16.0% 14.4% 14.2% 14.0% 14.7% 14.5% 14.0% 12.7% 12.3% 12.6% 11.6% 11.5% 12.0% 10.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 0 0% Q1 Q2 Q3 Q4 2008 2009 2010See Appendix attached hereto for additional information and a reconciliation of Non-GAAP measures. © 2010 Graphic Packaging International, Inc. 20
  • 21. Improving Financial Performance($ millions) Historical Pro Forma Revenue 2.1% -7.2% $5,000 $4,323 $4,415 $4,500 3.4% 3 4% -20.8% $4,096 $4 096 $4,062 $4 062 $4,000 $821 $849 $672 $669 $3,500 1.8% -4.0% $3,000 $3,502 $3,566 $3,424 $3,393 $2,500 $2 500 2007 2008 2009 Sept 10 LTM Paperboard Multi-Wall Bag & Specialty Packaging Historical Pro Forma Adj. EBITDA $580 $565 $556 $565 $550 10.8% $535 $520 $505 -0.6% $502 $505 $490 $475 2007 2008 2009 Sept 10 LTMSee Appendix attached hereto for additional information and a reconciliation of Non-GAAP measures. © 2010 Graphic Packaging International, Inc. 21
  • 22. Strong Cash Flow Generation ($millions)[Adjusted for Capital Structure] Cash Flow as a % of Sales Net Debt Reduction (CF = Pro Forma Adj EBITDA ‐ Cap Ex ‐ Δ W/C ‐ Cash Tax)14.0% $450 12.6% 11.7% $36312.0% $37510.0% $300 $135  8.0% 8 0% $225 5.8% 6.0% $150 4.0% $228  ≈$200  ≈$200 2.0% $75 $119  0.0% $0 2008 2009 Sept 2010 LTM 20081 2009 2010 Target Operations Alt. Fuel Tax Credit • Working capital velocity • Disciplined Capex decision making • EBITDA growth Source: 2008 management estimate for 1/1/2008 – 3/10/2008; and GPK audited financial statements1.) From Altivity Transaction date March 11, 2008 forward © 2010 Graphic Packaging International, Inc. 22
  • 23. Low Cost / Flexible Debt Profile Debt Profile as of 09/30/10 Debt Maturities $2,000  Long-term debt (in millions): PF Q310** $1,750  9.5% matures in 2013 $ 73 $1,500  Revolver matures in 2013 - Term B matures in 2014 891 $1,250  Term C matures in 2014 1,052 $1,000  9.5% matures in 2017 425 $750  7.875% matures in 2018 250 $500  Other 4 Total $ 2,695 $250  Total cash and short term $0  investments: 136 2013 2014 2015 2016 2017 2018+ Net Debt $ 2,559 Revolver 9.5% in 2013 Term B Term C 9.5% in 2017 7.875% in 2018 • Reduced debt by $573 million since Altivity Liquidity Position as of 9/30/10 transaction in March 2008 AmountRevolver Li *R l Line* $ 400.0 400 0 • Low cost debt structureBorrowings* + LOCs (32.0)Cash 166.3 • S&P Credit Rating upgraded to BB- from B+ inTotal Liquidity $ 534.3 July 2010* Excludes international credit facilities • 9.5% Notes due 2013 recently addressed • Substantial covenant cushion in bank debt ** Pro forma Q3’10 assumes ~$30M related to call of 9.5% Notes due 2013 occurred by 9/30/2010 © 2010 Graphic Packaging International, Inc. 23
  • 24. Debt Structure Target Current Ultimate Target 1 Net Leverage Ratio 4.5x 3.0x - 3.5x Bank vs. Bond Debt Bank h B k heavy Balanced B l d Maturity Concentrated Staggered S&P Credit Rating BB- BB area Net Leverage Ratio2 6.0x 4.8x 4.3x ~ 4.3x 3.0x ‐ 3.5x 2008 2009 2010 Target 2011 Target Ultimate  Target1.) Current Net Leverage Ratio as of 9/30/10 © 2010 Graphic Packaging International, Inc. 242.) Net debt/Pro forma Adjusted EBITDA (2008 and 2009)
  • 25. Recent Achievements 1 2 3 Optimize Grow Build Our Core Business By Leveraging Our Strengths The Right Execution Culture Completed Merger $200+mm New Product September YTD 2010 Integration $119mm Sales in 2009* Adj. EBITDA Margin Up Benefit in 2009 40 bps to 14 3% from 14.3% Grown US Folding Carton September YTD 2009 $64mm Other Cost Market Share to ~32% Improvements in 2009 Q3 2010 LTM Cash Grown Club Store Sales Provided by Operations y p Increased Cycle Times to O er $100mm from Over of $355mm** $34mm in 2006 Taken Limited Mill Ended Q3 2010 with a Downtime Developed Industry Net Leverage Ratio of Leading New Products in Successfully Renegotiated S f ll R ti t d 4.5x 45 Beverage, Microwave and Several Labor Agreements Strength Packaging S&P Credit Rating Upgraded to BB- from B B+ in July 2010*New products introduced in the last three years.** Includes $37.6mm of Black Liquor tax credit. © 2010 Graphic Packaging International, Inc. 25
  • 26. Strong Investment Thesis• Leading market share in further consolidated market• Strong and improving EBITDA margins• Rapid deleveraging through substantial cash generation• Positioned for growth – Expanded product portfolio – Global presence – Market exposure will allow Graphic to lead upon economic recovery © 2010 Graphic Packaging International, Inc. 26
  • 27. Appendix© 2010 Graphic Packaging International, Inc. 27
  • 28. Reconciliation Reconciliation of Non-GAAP Financial Measures The tables below set forth the calculation of the Companys earnings before interest expense, income tax expense, equity in the net earnings of the Companys affiliates, depreciation and amortization ("EBITDA") and Adjusted EBITDA. Adjusted EBITDA excludes charges associated with the Companys combination with Altivity Packaging, LLC and other Restructuring and Other Special Charges. The Company s Companys management believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors because these measures are regularly used by management in assessing the Companys performance. EBITDA and Adjusted EBITDA are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), and are not measures of net income, operating income, operating performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our EBITDA, and Adjusted EBITDA may not be comparable to Adjusted EBITDA or similarly titled measures utilized b other companies since such other companies may not calculate such measures Adj d i il l i l d ili d by h i i h h i l l h in the same manner as we do. Nine Months Ended Twelve Months Ended September 30, September 30, In millions 2010 2009 2010 2009 Net Sales $ 3,083.4 $ 3,117.2 $ 4,062.0 $ 4,164.9 Net (Loss) Income $ (8.9) $ 24.6 $ 22.9 $ (33.1) Add (Subtract): Income Tax Expense 29.8 29.7 24.2 39.1 Equity in Net Earnings of Affiliates (1.4) (1 4) (0.8) (0 8) (1.9) (1 9) (0.7) (0 7) Interest Expense, Net 134.0 158.0 172.4 216.2 Depreciation and Amortization 225.2 244.0 308.0 319.7 EBITDA 378.7 455.5 525.6 541.2 Charges Associated with Combination with Altivity 55.1 61.6 65.2 64.9 Asset Impairment and Shutdown Charges - 2.3 10.7 17.8 Loss on Modification or Extinguishment of Debt 7.4 74 7.1 71 7.4 74 7.1 71 Alternative Fuel Tax Credits Net of Expenses - (93.8) (44.0) (93.8) Adjusted EBITDA $ 441.2 $ 432.7 $ 564.9 $ 537.2 © 2010 Graphic Packaging International, Inc. 28
  • 29. Reconciliation Nine Months Ended Year Ended Twelve Months Ended September 30, December 31, In millions September 30, 2010 2010 2009 2009 2008 2007 Net Sales $ 4,062.0 $ 3,083.4 $ 3,117.2 $ 4,095.8 $ 4,079.4 $ 2,421.2 Altivity Net Sales - - - - 335.6 1,902.1 Consolidated Pro Forma Net Sales $ 4,062.0 $ 3,083.4 $ 3,117.2 $ 4,095.8 $ 4,415.0 $ 4,323.3 Pro Forma Net Income (Loss) $ 22.9 $ (8.9) $ 24.6 $ 56.4 $ (124.2) (89.6) Add (Subtract): Income Tax Expense 24.2 29.8 29.7 24.1 35.1 26.9 Equity in Net Earnings of Affiliates (1.9) (1.4) (0.8) (1.3) (1.1) (0.9) Interest Expense, Net 172.4 134.0 158.0 196.4 246.9 244.9 Depreciation and Amortization 308.0 225.2 244.0 326.8 287.7 295.6 Pro F P Forma EBITDA 525.6 2 6 378.7 378 7 455.5 4 602.4 602 4 444.4 444 4 476.9 476 9 Charges Associated with Combination with Altivity 65.2 55.1 61.6 71.7 17.7 - Asset Impairment and Shutdown Charges 10.7 - 2.3 13.0 15.5 18.6 Inventory Step Up Related to Altivity - - - - 24.4 - Loss on Modification or Extinguishment of Debt 7.4 7.4 7.1 7.1 - 9.5 Alternative Fuel Tax Credits Net of Expenses (44.0) - (93.8) (137.8) - - Consolidated Pro Forma Adjusted EBITDA $ 564.9 $ 441.2 $ 432.7 $ 556.4 $ 502.0 505.0 Pro Forma Net Sales by Segments: Paperboard Packaging $ 3,393.3 $ 2,575.7 $ 2,605.9 $ 3,423.5 $ 3,565.7 Multi-wall Bag and Specialty Packaging 668.7 507.7 511.3 672.3 849.3 Total Pro Forma Net Sales $ 4,062.0 $ 3,083.4 $ 3,117.2 $ 4,095.8 $ 4,415.0 Pro Forma Adjusted EBITDA by Segments: Paperboard Packaging $ 541.0 $ 430.8 $ 432.3 $ 542.5 $ 484.0 Multi-wall Bag and Specialty Packaging 52.6 36.9 39.2 54.9 76.1 Corporate (28.7) (26.5) (38.8) (41.0) (58.1) Total Pro Forma Adjusted EBITDA $ 564.9 $ 441.2 $ 432.7 $ 556.4 $ 502.0 Pro Forma Adjusted EBITDA Margin by Segment: Paperboard Packaging 15.9% 15 9% 16.7% 16 7% 16.6% 16 6% 15.8% 15 8% 13.6% 13 6% Multi-wall Bag and Specialty Packaging 7.9% 7.3% 7.7% 8.2% 9.0% Total Pro Forma Adjusted EBITDA Margin 13.9% 14.3% 13.9% 13.6% 11.4% © 2010 Graphic Packaging International, Inc. 29
  • 30. Reconciliation The table below sets forth the calculation of the Companys Total Net Debt and Net Leverage Ratio. The Companys management believes that the presentation of Total Net Debt and Net Debt Leverage provides useful information to investors because these measures are regularly used by management in assessing the Companys performance. Total Net Debt is a financial measure not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Total Net Debt and Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP, but should not be considered superior to GAAP results. In addition, our Total Net Debt and Net Leverage Ratio may not be comparable to similarly titled measures utilized by other companies since other companies may not calculate such a measure in the same manner as we do. September 30, December 31, December 31, March 31, Calculation of Net Debt: 2010 2009 2008 2008 Short-Term Debt and Current Portion of Long-Term Debt $ 28.8 $ 17.6 $ 18.6 $ 20.3 Long-Term Debt 2,696.9 2 696 9 2,782.6 2 782 6 3,165.2 3 165 2 3,134.4 3 134 4 Less: Cash and Cash Equivalents (166.3) (149.8) (170.1) (21.9) Total Net Debt $ 2,559.4 $ 2,650.4 $ 3,013.7 $ 3,132.8 LTM Proforma Adjusted EBITDA $ 564.9 556.4 502.0 Net Leverage Ratio 4.5 4.8 6.0 © 2010 Graphic Packaging International, Inc. 30