Graphic Packaging Holding Company · NYSE:GPK
Graphic Packaging — Investor Presentation (October 2021)
30 slides from Graphic Packaging's investor presentation, Oct 4, 2021
Slide 1: Investor Engagement October 2021
Exhibit 99.1 INVESTOR ENGAGEMENT October 2021 Inspired Packaging. A World of Difference.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Any statements of the Company's expectations in these slides, including but not limited to the intent and timing to acquire AR Packaging, proforma European sales of the combined entity, expected synergies from the A
Slide 3: Agenda
AGENDA Graphic Packaging Today Our Role in Driving a More Sustainable Future Positioned to Deliver Stakeholder Value ESG Leadership Core to Business Engaged Board with Strong Governance Practices 3 ©2021 Graphic Packaging International
Slide 4: Graphic Packaging at a Glance
GRAPHIC PACKAGING AT A GLANCE The largest fiber-based Integrated in 3 major $6.6B 100+ 19,000+ carton and cup paperboard grades Sales for 2020 Years operating (1) manufacturer in the world CUK | SBS | CRB Employees worldwide NYSE: GPK history 100+ Leader Leader 2,400+ Locations in safety in sustaina
Slide 5: Innovative, Sustainable Fiber-Based Packaging
INNOVATIVE, SUSTAINABLE FIBER-BASED PACKAGING Made from renewable and recyclable materials, and designed with the future of our planet and society in mind, our innovative, sustainable packaging solutions meet Fiber-Based customer needs while supporting a circular economy Inspired by consumers and th
Slide 6: Leader in Food, Beverage, Foodservice & Consumer Products Packaging Markets
LEADER IN FOOD, BEVERAGE, FOODSERVICE & CONSUMER PRODUCTS PAPERBOARD PACKAGING MARKETS Leading provider of sustainable fiber-based consumer packaging 39% 20% solutions in support of the move to a circular economy Food Foodservice GEOGRAPHIC FOOTPRINT (2020 NET SALES) 21% 20% 86% 12% 2% Americas Euro
Slide 7: Sustained Market Leadership
SUSTAINED MARKET LEADERSHIP # 1 Coated Recycled Board Producer 49% 2.1M ton U.S. market 40% # 1 Coated Unbleached Kraft Producer 30% of all folding cartons in of all paper cups in theU.S. NorthAmerica 60% 2.7M ton U.S. market # 2 Solid Bleached Sulfate Producer 22% 5.5M ton U.S. market Source: PPC,
Slide 8: Powerful, Vertically Integrated Business Model
POWERFUL, VERTICALLY INTEGRATED BUSINESS MODEL Our vertically integrated model streamlines our business, KEY CUSTOMERS ACROSS FOOD, provides efficiencies, enables margin expansion and BEVERAGE, FOODSERVICE & strengthens our competitive position CONSUMER PRODUCTS MARKETS LOW COST, HIGH QUALITY 1 PAPE
Slide 9: Increased Demand for Sustainable Packaging Driving Organic Sales Growth
INCREASED DEMAND FOR SUSTAINABLE PACKAGING DRIVING ORGANIC SALES GROWTH $7.5 BILLION ADDRESSABLE MARKET PLASTIC SUBSTITUTION COOKING SOLUTIONS STRENGTH PACKAGING Foodservice Cups and Cartons Microwave Technologies Club Stores, Mass Retailers, E-commerce Beverage Multi-packs Paperboard Bowls andTrays
Slide 10: Agenda
AGENDA Graphic Packaging Today Our Role in Driving a More Sustainable Future Positioned to Deliver Stakeholder Value ESG Leadership Core to Business Engaged Board with Strong Governance Practices 10 ©2021 Graphic Packaging International
Slide 11: Our Products Are Fiber-Based and Made from a Renewable Resource
OUR PRODUCTS ARE FIBER-BASED AND MADE FROM A RENEWABLE RESOURCE Made from Tree Fiber, Our Products Provide the Strength and Structural Integrity for a Variety of Uses Made from nature Strong and versatile Trees primarily grown in the Southern U.S. • Durable • Fiber from responsibly- managed forests
Slide 12: Our Products Are Circular
OUR PRODUCTS ARE CIRCULAR Our packaging is designed to be recyclable and circular, supporting a future with less waste We source fiber from responsibly- managed forests, process it in our state-of-the-art mills, and then convert the paper into sustainable packaging that is designed to ultimately be
Slide 13: Paperboard Lifecycle
PAPERBOARD LIFECYCLE We consider how to reduce environmental impacts from beginning to the end of a product’s life • Sustainable Forestry policy to trace wood fiber through the manufacturing process • Incubation process to test solutions for manufacturability, durability, ease-of-use and recyclabili
Slide 14: Responsible Fiber Use & Certifications
RESPONSIBLE FIBER USE & CERTIFICATIONS By sourcing tree fiber from certified and responsibly-managed sources, we are helping to maintain forests, protect species and water supplies 100% of facilities globally are compliant with forest/fiber Certification Certified Sourcing Certified Chain of Custody
Slide 15: Agenda
AGENDA Graphic Packaging Today Our Role in Driving a More Sustainable Future Positioned to Deliver Stakeholder Value ESG Leadership Core to Business Engaged Board with Strong Governance Practices 15 ©2021 Graphic Packaging International
Slide 16: Capturing Growth with Packaging Innovation and Strategic Investments
CAPTURING GROWTH WITH PACKAGING INNOVATION AND STATEGIC INVESTMENTS; DRIVING FINANCIAL PERFORMANCE THROUGH WELL- CAPITALIZED INFRASTRUCTURE AND EFFICIENT VERTICAL APPROACH Grow Converting Volume • Sustainability supported organic sales growth • Targeted share gains • Select tuck-under acquisitions N
Slide 17: Track Record of Superior Value Creation
TRACK RECORD OF SUPERIOR VALUE CREATION Continued Execution of Strategic M&A driving value Completion of International Paper Acquisition of AR Packaging extends our transaction furthers leadership position in presence in Europe and growing markets fiber-based consumer packaging • Builds scale across
Slide 18: Agenda
AGENDA Graphic Packaging Today Our Role in Driving a More Sustainable Future Positioned to Deliver Stakeholder Value ESG Leadership Core to Business Engaged Board with Strong Governance Practices 18 ©2021 Graphic Packaging International
Slide 19: Vision 2025
VISION 2025 Vision 2025 guides our sustainability-driven business strategy and outlines how we will be better stewards of our planet, supporters of our people, allies to our partners, all while generating returns for our stockholders. People Planet Products Partners Engage employees in an inclusive
Slide 20: Commitment to Diversity & Inclusion
COMMITMENT TO DIVERSITY & INCLUSION Diverse executive and senior leadership teams facilitates an environment where inclusion is modeled and cascaded through our organization 2020 & 2021 Highlights Our Board annually reviews our company’s: ✓ Established 2020 diversity baseline to provide clear direct
Slide 21: Reducing Our Impact on the Environment
REDUCING OUR IMPACT ON THE ENVIRONMENT Throughout our operations we strive to improve our environmental footprint We use bark and other We reuse local treated biomass to generate the wastewater to make majority of our own our products electricity in our mills Our process is designed to reuse water m
Slide 22: CRB Platform Optimization Investment Environmental Impacts
CRB PLATFORM OPTIMIZATION INVESTMENT ANNOUNCED IN 2019 PROVIDES COMPELLING, POSITIVE ENVIRONMENTAL IMPACTS Current Future % Change ANNUAL CRB PLATFORM Green House Gases (Metric Tons) - 16% to - 20% 497 400 - 419 K K Water Usage (Gallons/Ton) 916 614 - 33% Purchased Energy (KWH/Ton) 1,901 1,562 - 18%
Slide 23: ESG Oversight and Disclosure
ESG OVERSIGHT AND DISCLOSURE Board of Directors Our Board and executive leadership have direct oversight of ESG 10 directors, 9 independent, led by Chairman of the Board initiatives and practices Compensation and Nominating and Board Oversight Management Corporate Audit Committee Development Governa
Slide 24: ESG Board and Committee Oversight Framework and Roles
ESG BOARD AND COMMITTEE OVERSIGHT FRAMEWORK AND ROLES • ESG Strategy, Linkage to Business Strategy and Objectives BOARD OF DIRECTORS • Shareholder Engagement • Governance and Culture COMPENSATION & MANAGEMENT NOMINATING & CORPORATE AUDIT COMMITTEE DEVELOPMENT COMMITTEE GOVERNANCE COMMITTEE • Compens
Slide 25: Committed to Continued Advancements in Sustainable Production Practices
COMMITED TO CONTINUED ADVANCEMENTS IN SUSTAINABLE PRODUCTION PRACTICES RECENTLY ANNOUNCED APPOINTMENT OF Michelle Fitzpatrick, PH.D FIRST CHIEF SUSTAINABILTY OFFICER RESPONSIBILITIES AND REPORTING STRUCTURE • Advance sustainability program • Increase risk management oversight • Expand reporting and
Slide 26: Agenda
AGENDA Graphic Packaging Today Our Role in Driving a More Sustainable Future Positioned to Deliver Stakeholder Value ESG Leadership Core to Business Engaged Board with Strong Governance Practices 26 ©2021 Graphic Packaging International
Slide 27: Independent and Diverse Board of Directors
INDEPENDENT AND DIVERSE BOARD OF DIRECTORS Our Board has a regular refreshment process focused on recruiting the right skills and experience to oversee the company’s strategy; actively pursuing new Board members with racial / ethnic diversity Balanced Tenure Philip R. Martens Michael P. Doss Indepen
Slide 28: Board Expertise and Skills Aligned with Our Business and Strategy
BOARD EXPERTISE AND SKILLS ALIGNED WITH OUR BUSINESS AND STRATEGY Directors’ Collective Expertise and Skills Global operator with significant presence International Finance in the U.S. and Europe Operations Best-in-class operator with focus on efficient manufacturing processes M&A / Integration Manu
Slide 29: CEO Compensation Aligned with Strategic Objectives
CEO Compensation CEO COMPENSATION ALIGNED WITH STRATEGIC OBJECTIVES Goals in short- and long-term incentives tie to key financial metrics used to evaluate our performance, ensuring strong pay for performance alignment and outcomes consistent with stockholder experience Compensation CEO Target CEO Co
Slide 30: Sound Compensation Practices
SOUND COMPENSATION PRACTICES Compensation practices are instrumental in achieving the Company’s compensation goals of attracting, motivating and rewarding key members of management, while mitigating risk and maintaining sound management What we do: What we don’t do: ✓ Maintain a compensation mix tha
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