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Sonoco Second Quarter 2012 Results
July 19, 2012

                  1
Forward-Looking Statements
Today’s presentation contains a number of forward-looking statements based on current expectations, estimates and
projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties.
Therefore, actual results may differ materially.


Information about the Company’s use of non-GAAP financial measures, why management believes presentation of non-GAAP
financial measures provides useful information to investors about the Company’s financial condition and results of operations,
and the purposes for which management uses non-GAAP financial measures is included in the Company’s Annual Report
and on the Company’s website at sonoco.com.


Pursuant to the requirements of Regulation G, the Company has provided definitions of the non-GAAP measures discussed
during this presentation as well as reconciliations of those measures to the most closely related GAAP measure on its
website at sonoco.com.


This presentation does not constitute the solicitation of the purchase or sale of any securities.


                                                                    2
EPS Summary
2nd Quarter: 2012 Vs. 2011


                                                  2nd Quarter
                                           2012                 2011

    Actual EPS                               $0.50               $0.52
    Addback for:
     Restructuring & Asset Impair             0.08                0.07
     Acq Related & Other Adjustments           -                  0.01
    Base EPS                                 $0.58               $0.60


    Sonoco Guidance                    $0.55 to $0.60


    First Call Consensus                     $0.58




                                       3
P&L Summary (Base)
2nd Quarter: 2012 Vs. 2011
(Dollars in thousands)
                                                                                       Better / (Worse)
                                                      2012            2011            $               %
Net sales                                         $ 1,202,359     $ 1,127,865     $   74,494              6.6%
Cost of sales                                         (985,817)       (936,775)       (49,042)        -5.2%
 Gross profit                                         216,542         191,090         25,452          13.3%
SG&A and other expense, net                           (118,456)        (98,282)       (20,174)       -20.5%
 Income before interest and taxes                      98,086          92,808          5,278              5.7%
Net interest                                           (15,248)         (8,174)        (7,074)       -86.5%
 Income before income taxes                            82,838          84,634          (1,796)        -2.1%
Provision for income taxes                             (27,130)        (26,998)         (132)         -0.5%
 Income before equity in earnings of affiliates        55,708          57,636          (1,928)        -3.3%
Equity in earnings of affiliates, net of tax             3,934           3,416           518          15.2%
 Net income                                            59,642          61,052          (1,410)        -2.3%
Noncontrolling interests                                     15           (271)         (256)         94.5%
 Net income attributable to Sonoco                $    59,657     $    60,781     $    (1,124)        -1.8%
EPS diluted                                       $       0.58    $       0.60    $     (0.02)        -3.3%


                                                             4
Sales Bridge
2nd Quarter: 2012 Vs. 2011
(Dollars in thousands)


                             Q2 - 2012       YTD 2012


     2011 Sales              $1,127,865      $2,245,188

      Volume / Mix              (12,752)        (23,807)


      Price                          2,748        9,437


      Acquisition               123,706         238,470

      Exchange / Other          (39,208)        (54,559)

     2012 Sales              $1,202,359      $2,414,729




                                 5
Base EBIT Bridge
2nd Quarter: 2012 vs. 2011
(Dollars in thousands)


                                          Q2-2012    YTD 2012


  2011 Base EBIT                          $92,808    $183,979

   Volume / Mix                           (13,570)    (29,491)


   Price / Mat'l, Energy, Frt Costs        16,259      24,551


   Productivity                             9,715      20,885

   Acquisition                              9,428      15,025

   Other                                  (12,595)    (14,780)


   Pension                                 (3,959)     (7,852)

  2012 Base EBIT                          $98,086    $192,317


                                      6
Segment Sales and EBIT ($MM’s)




                     2012    2011                          2012    2011                              2012    2011                         2012    2011
Sales                $477    $491    Sales                 $475    $485         Sales                $108    $126    Sales                $142    $26
Base EBIT            $42.7   $40.2   Base EBIT             $39.7   $40.4        Base EBIT            $4.0    $8.7    Base EBIT            $11.7   $3.5
EBIT as % of Sales    9.0%    8.2%   EBIT as % of Sales     8.3%    8.3%        EBIT as % of Sales    3.7%    6.9%   EBIT as % of Sales    8.2%   13.1%




                                                                           2012             2011
                                                   Sales                   $1,202           $1,128
                                                   Base EBIT               $98.1            $92.8
                                                   EBIT as % of Sales       8.2%             8.2%
                                                                            7
Earnings Guidance


             1st Qtr   2nd Qtr       3rd Qtr        Full Year
            (Actual)   (Actual)

 2011
             $0.57      $0.60        $0.66           $2.29
 Base EPS

 2012
             $0.52      $0.58     $0.62 – $0.66   $2.34 – $2.39
 Base EPS




                             8
Cash Flow
2nd Quarter: 2012 Vs. 2011
(Dollars in thousands)


                                                                  nd
                                                              2        Qtr                              YTD
                                                     2012                    2011            2012                 2011

Cash from operations (See Note A)                $     42,929            $     45,921    $    144,401         $     32,075

Purchase of property, plant and equipment, net        (54,864)                (33,980)       (102,034)             (70,466)

Cash Dividends                                        (30,178)                (28,908)        (59,343)             (56,985)

  "Free Cash Flow"                               $    (42,113)           $    (16,967)   $    (16,976)        $    (95,376)

Acquisitions                                                  -               (10,395)              (503)          (10,395)

Shares acquired, net of shares issued                     1,276                 5,623           2,545              (32,324)

Change in debt                                         68,521                 (31,593)         32,436              112,142

Change in cash                                         19,905                 (51,193)         20,482              (24,267)


Note A: Cash from operations includes pension
and post retirement plan contributions of:       $     (8,516)           $    (12,346)   $    (58,964)        $   (110,482)




                                                      9
Appendix




     10
OCC: Southeast Yellow Sheet
2012 Vs. 2011 Vs. 2010
(Price / Ton)




               1st Quarter               2nd Quarter               3rd Quarter               4th Quarter
           J      F     M    Avg    A       M     J    Avg     J      A     S    Avg    O       N     D    Avg

2010     110    140   175    142   145    130   125    133   120    120   130    123   145    160   160    155

2011     150    140   140    143   140    140   150    143   170    175   175    173   160    110   110    127

2012     110    110   135    118   135    125   125    128




                                                       11
Balance Sheet
(Dollars in thousands)
                                                          07/01/12          04/01/12          Change $


  Cash and cash equivalents                           $       196,005   $       176,100   $       19,905
  Trade accounts receivable, net of allowances                647,203           664,429           (17,226)
  Other receivables                                            34,143            31,837            2,306
  Inventories                                                 407,425           411,422            (3,997)
  Prepaid expenses and deferred income taxes                   78,853            66,593           12,260
   Current Assets                                           1,363,629         1,350,381           13,248

  Property, plant and equipment, net                        1,017,705         1,027,625            (9,920)
  Goodwill                                                  1,105,037         1,110,504            (5,467)
  Other intangible assets, net                                289,625           297,179            (7,554)
  Other assets                                                248,920           246,736            2,184
   Total Assets                                       $     4,024,916   $     4,032,425   $        (7,509)


  Payable to suppliers and others                     $       788,667   $       829,962   $       (41,295)
  Accrued taxes                                                 5,372            14,860            (9,488)
  Total debt                                                1,318,951         1,251,897           67,054
  Pension and other postretirement benefits                   374,654           382,496            (7,842)
  Deferred income taxes and other                              71,677            73,610            (1,933)
  Total equity                                              1,465,595         1,479,600           (14,005)
   Total Liabilities and Shareholders' Equity         $     4,024,916   $     4,032,425   $        (7,509)


  Total debt/Total capital                                      47.4%             45.8%


                                                 12
Base Results
2nd Quarter: 2012 Vs. 2011 Vs. 2010
                            Net Sales $MM                                                 Gross Profit %                                                              S&A /OIC %

$1,400                                                                21.0%                                                                 12.0%

$1,200                                                                20.0%
                                                                                                                                            11.0%
$1,000
                                                                      19.0%
                                                                                                                                            10.0%
 $800
                                                                      18.0%
 $600                                                                                                                                       9.0%
                                                                      17.0%
 $400
                                                                                                                                            8.0%
                                                                      16.0%
 $200

   $0                                                                 15.0%                                                                 7.0%
              1Q          2Q          3Q          4Q         Total            2Q-   3Q-   4Q-   1Q-   2Q-   3Q-   4Q-   1Q-   2Q-                   2Q-   3Q-   4Q-    1Q-   2Q-   3Q-   4Q-   1Q-   2Q-
                                                                              10    10    10    11    11    11    11    12    12                    10    10    10     11    11    11    11    12    12
   2010     $935.1     $1,010.1    $1,051.7    $1,127.1    $4,124.1
                                                                      Hist 19.1%19.0%17.7%17.4%16.9%16.6%16.4%17.9%18.0%                    Hist  9.9% 9.6% 9.5% 9.2% 8.7% 7.8% 8.9% 10.1% 9.9%
   2011    $1,117.3    $1,127.9    $1,124.2    $1,129.6    $4,498.9
                                                                      Vs PY 16.9%16.6%16.4%17.9%18.0%                                       Vs PY 8.7% 7.8% 8.9% 10.1% 9.9%
   2012    $1,212.4    $1,202.4




                             Base EBIT %                                                   Tax Rate %
                                                                                                                                                                    Base EPS $

                                                                                                                                    $0.70
     11.0%                                                            45.0%
                                                                                                                                    $0.60
     10.0%
                                                                      40.0%                                                         $0.50
         9.0%
                                                                                                                                    $0.40
         8.0%                                                         35.0%
                                                                                                                                    $0.30
         7.0%
                                                                                                                                    $0.20
                                                                      30.0%
         6.0%                                                                                                                       $0.10

         5.0%                                                         25.0%                                                         $0.00
                2Q-   3Q-   4Q-   1Q-   2Q-   3Q-   4Q-   1Q-   2Q-           2Q-   3Q-   4Q-   1Q-   2Q-   3Q-   4Q-   1Q-   2Q-                1Q          2Q           3Q          4Q         Total
                10    10    10    11    11    11    11    12    12            10    10    10    11    11    11    11    12    12     2010       $0.50       $0.59        $0.65       $0.59       $2.34
         Hist  9.2% 9.4% 8.2% 8.2% 8.2% 8.8% 7.4% 7.8% 8.2%            Hist 31.8%29.6%31.6%31.2%31.9%29.1%39.0%33.7%32.8%            2011       $0.57       $0.60        $0.66       $0.46       $2.29
         Vs PY 8.2% 8.8% 7.4% 7.8% 8.2%                                Vs PY 31.9%29.1%39.0%33.7%32.8%                               2012       $0.52       $0.58




                                                                                                13

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Sonoco 2Q 2012 Results Presentation

  • 1. Sonoco Second Quarter 2012 Results July 19, 2012 1
  • 2. Forward-Looking Statements Today’s presentation contains a number of forward-looking statements based on current expectations, estimates and projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties. Therefore, actual results may differ materially. Information about the Company’s use of non-GAAP financial measures, why management believes presentation of non-GAAP financial measures provides useful information to investors about the Company’s financial condition and results of operations, and the purposes for which management uses non-GAAP financial measures is included in the Company’s Annual Report and on the Company’s website at sonoco.com. Pursuant to the requirements of Regulation G, the Company has provided definitions of the non-GAAP measures discussed during this presentation as well as reconciliations of those measures to the most closely related GAAP measure on its website at sonoco.com. This presentation does not constitute the solicitation of the purchase or sale of any securities. 2
  • 3. EPS Summary 2nd Quarter: 2012 Vs. 2011 2nd Quarter 2012 2011 Actual EPS $0.50 $0.52 Addback for: Restructuring & Asset Impair 0.08 0.07 Acq Related & Other Adjustments - 0.01 Base EPS $0.58 $0.60 Sonoco Guidance $0.55 to $0.60 First Call Consensus $0.58 3
  • 4. P&L Summary (Base) 2nd Quarter: 2012 Vs. 2011 (Dollars in thousands) Better / (Worse) 2012 2011 $ % Net sales $ 1,202,359 $ 1,127,865 $ 74,494 6.6% Cost of sales (985,817) (936,775) (49,042) -5.2% Gross profit 216,542 191,090 25,452 13.3% SG&A and other expense, net (118,456) (98,282) (20,174) -20.5% Income before interest and taxes 98,086 92,808 5,278 5.7% Net interest (15,248) (8,174) (7,074) -86.5% Income before income taxes 82,838 84,634 (1,796) -2.1% Provision for income taxes (27,130) (26,998) (132) -0.5% Income before equity in earnings of affiliates 55,708 57,636 (1,928) -3.3% Equity in earnings of affiliates, net of tax 3,934 3,416 518 15.2% Net income 59,642 61,052 (1,410) -2.3% Noncontrolling interests 15 (271) (256) 94.5% Net income attributable to Sonoco $ 59,657 $ 60,781 $ (1,124) -1.8% EPS diluted $ 0.58 $ 0.60 $ (0.02) -3.3% 4
  • 5. Sales Bridge 2nd Quarter: 2012 Vs. 2011 (Dollars in thousands) Q2 - 2012 YTD 2012 2011 Sales $1,127,865 $2,245,188 Volume / Mix (12,752) (23,807) Price 2,748 9,437 Acquisition 123,706 238,470 Exchange / Other (39,208) (54,559) 2012 Sales $1,202,359 $2,414,729 5
  • 6. Base EBIT Bridge 2nd Quarter: 2012 vs. 2011 (Dollars in thousands) Q2-2012 YTD 2012 2011 Base EBIT $92,808 $183,979 Volume / Mix (13,570) (29,491) Price / Mat'l, Energy, Frt Costs 16,259 24,551 Productivity 9,715 20,885 Acquisition 9,428 15,025 Other (12,595) (14,780) Pension (3,959) (7,852) 2012 Base EBIT $98,086 $192,317 6
  • 7. Segment Sales and EBIT ($MM’s) 2012 2011 2012 2011 2012 2011 2012 2011 Sales $477 $491 Sales $475 $485 Sales $108 $126 Sales $142 $26 Base EBIT $42.7 $40.2 Base EBIT $39.7 $40.4 Base EBIT $4.0 $8.7 Base EBIT $11.7 $3.5 EBIT as % of Sales 9.0% 8.2% EBIT as % of Sales 8.3% 8.3% EBIT as % of Sales 3.7% 6.9% EBIT as % of Sales 8.2% 13.1% 2012 2011 Sales $1,202 $1,128 Base EBIT $98.1 $92.8 EBIT as % of Sales 8.2% 8.2% 7
  • 8. Earnings Guidance 1st Qtr 2nd Qtr 3rd Qtr Full Year (Actual) (Actual) 2011 $0.57 $0.60 $0.66 $2.29 Base EPS 2012 $0.52 $0.58 $0.62 – $0.66 $2.34 – $2.39 Base EPS 8
  • 9. Cash Flow 2nd Quarter: 2012 Vs. 2011 (Dollars in thousands) nd 2 Qtr YTD 2012 2011 2012 2011 Cash from operations (See Note A) $ 42,929 $ 45,921 $ 144,401 $ 32,075 Purchase of property, plant and equipment, net (54,864) (33,980) (102,034) (70,466) Cash Dividends (30,178) (28,908) (59,343) (56,985) "Free Cash Flow" $ (42,113) $ (16,967) $ (16,976) $ (95,376) Acquisitions - (10,395) (503) (10,395) Shares acquired, net of shares issued 1,276 5,623 2,545 (32,324) Change in debt 68,521 (31,593) 32,436 112,142 Change in cash 19,905 (51,193) 20,482 (24,267) Note A: Cash from operations includes pension and post retirement plan contributions of: $ (8,516) $ (12,346) $ (58,964) $ (110,482) 9
  • 10. Appendix 10
  • 11. OCC: Southeast Yellow Sheet 2012 Vs. 2011 Vs. 2010 (Price / Ton) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter J F M Avg A M J Avg J A S Avg O N D Avg 2010 110 140 175 142 145 130 125 133 120 120 130 123 145 160 160 155 2011 150 140 140 143 140 140 150 143 170 175 175 173 160 110 110 127 2012 110 110 135 118 135 125 125 128 11
  • 12. Balance Sheet (Dollars in thousands) 07/01/12 04/01/12 Change $ Cash and cash equivalents $ 196,005 $ 176,100 $ 19,905 Trade accounts receivable, net of allowances 647,203 664,429 (17,226) Other receivables 34,143 31,837 2,306 Inventories 407,425 411,422 (3,997) Prepaid expenses and deferred income taxes 78,853 66,593 12,260 Current Assets 1,363,629 1,350,381 13,248 Property, plant and equipment, net 1,017,705 1,027,625 (9,920) Goodwill 1,105,037 1,110,504 (5,467) Other intangible assets, net 289,625 297,179 (7,554) Other assets 248,920 246,736 2,184 Total Assets $ 4,024,916 $ 4,032,425 $ (7,509) Payable to suppliers and others $ 788,667 $ 829,962 $ (41,295) Accrued taxes 5,372 14,860 (9,488) Total debt 1,318,951 1,251,897 67,054 Pension and other postretirement benefits 374,654 382,496 (7,842) Deferred income taxes and other 71,677 73,610 (1,933) Total equity 1,465,595 1,479,600 (14,005) Total Liabilities and Shareholders' Equity $ 4,024,916 $ 4,032,425 $ (7,509) Total debt/Total capital 47.4% 45.8% 12
  • 13. Base Results 2nd Quarter: 2012 Vs. 2011 Vs. 2010 Net Sales $MM Gross Profit % S&A /OIC % $1,400 21.0% 12.0% $1,200 20.0% 11.0% $1,000 19.0% 10.0% $800 18.0% $600 9.0% 17.0% $400 8.0% 16.0% $200 $0 15.0% 7.0% 1Q 2Q 3Q 4Q Total 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 10 10 10 11 11 11 11 12 12 10 10 10 11 11 11 11 12 12 2010 $935.1 $1,010.1 $1,051.7 $1,127.1 $4,124.1 Hist 19.1%19.0%17.7%17.4%16.9%16.6%16.4%17.9%18.0% Hist 9.9% 9.6% 9.5% 9.2% 8.7% 7.8% 8.9% 10.1% 9.9% 2011 $1,117.3 $1,127.9 $1,124.2 $1,129.6 $4,498.9 Vs PY 16.9%16.6%16.4%17.9%18.0% Vs PY 8.7% 7.8% 8.9% 10.1% 9.9% 2012 $1,212.4 $1,202.4 Base EBIT % Tax Rate % Base EPS $ $0.70 11.0% 45.0% $0.60 10.0% 40.0% $0.50 9.0% $0.40 8.0% 35.0% $0.30 7.0% $0.20 30.0% 6.0% $0.10 5.0% 25.0% $0.00 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 2Q- 3Q- 4Q- 1Q- 2Q- 3Q- 4Q- 1Q- 2Q- 1Q 2Q 3Q 4Q Total 10 10 10 11 11 11 11 12 12 10 10 10 11 11 11 11 12 12 2010 $0.50 $0.59 $0.65 $0.59 $2.34 Hist 9.2% 9.4% 8.2% 8.2% 8.2% 8.8% 7.4% 7.8% 8.2% Hist 31.8%29.6%31.6%31.2%31.9%29.1%39.0%33.7%32.8% 2011 $0.57 $0.60 $0.66 $0.46 $2.29 Vs PY 8.2% 8.8% 7.4% 7.8% 8.2% Vs PY 31.9%29.1%39.0%33.7%32.8% 2012 $0.52 $0.58 13