1 Sonoco Recycling – Material Markets VRA May 2013 Susan Albritton

Sonoco Products Company  Packaging Services  Rigid Paper & Closures  Flexible Packaging  Global Plastics 2 Global Consumer Packaging Services Global Industrial Products Group NA Converted Products Industrial Carriers Protective Packaging Primary Materials Sonoco Recycling Paper & Adhesives Europe Industrial Products Paper/Recycling Asia Pacific Industrial Products SA Industrial Products Paper/Recycling Sonoco is a vertically integrated global manufacturer of uncoated recycled paperboard and the world’s largest producer of tubes and cores.

Packaging Sustainable Value Network 3  Named one of the United States’ 100 ‘greenest’ large companies by Newsweek in 2010  Named to the Dow Jones Sustainability World Index in 2012 for a 4th consecutive year  Named one of the most admired companies by Fortune magazine  Corporate Responsibility (CR) magazine’s 100 Best Corporate Citizens for 2010/2011  Included in KLD’s Domini 400 Social Index for 18 th consecutive year World’s Most Admired Companies® Corporate Recognition

 Stand-alone recycling division of end user –No hauling division, No landfill ownership – FOCUS on recovery and value  Recycles 3.5 million tons annually – in 30 facilities  Sonoco uses recycled materials with in our mills, and others, to manufacture consumer & industrial packaging Sonoco’s Commitment to Recycling Services

Sonoco Recycling at a Glance 5 Supplier concentration: 7,000 Mills: 3 in SE consume 1800 tons per day Annual Tons: 3.4 MM Locations: 28 Equipment in field: Logistics: 150 power units; 1,000+ trailers

6 Trends for 2013 in Fiber  OCC “ Old Corrugated Containers” is closing in on 80% recovery rate.  Mills are running strong due to the right sizing in the last decline-prices are expected to remain steady.  Quality criteria has gotten tighter as export has driven less clean “export” tons to domestic mills.  Over supply of mixed grades such as “mixed paper” and some high grades is expected to depress prices.

Historical OCC SE Yellow Sheet 7 JanFebMarAprMayJunJulAugSepOctNovDec Avg $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Price > $100

SE Official Board Market Pricing OCC 8

Paper Trade Sales – The “GREEN” Fence 9 New Guidelines for Fiber Grades  CLEAN! Very few mixed paper orders – MRF mixed paper orders are especially challenging.  BASIC! Specialty grade orders- post industrial foils, poly laminates etc. are not moving.  DETAILS! Key exporters are under scrutiny – loss of licensure, serious fines and expensive quarantines have choked down China’s ports. The #1 largest export from the US to China in 2012 was WASTE PAPER !

10 Commodity12-Jan12-Feb12-Mar12-Apr12-May12-Jun12-Jul12-Aug12-Sep12-Oct12-Nov12-Dec13-Jan13-Feb13-Mar13-Apr Average PER TON VALUES Metal Aluminum Cans$1,485$1,408$1,612$1,635$1,551$1,486$1,438$1,370 $1,521$1,571$1,443$1,583 $1,503$1,485 $1,417 Metal Steel Cans$122$129 $117 $122 $116 Metal White Goods$124$140 $124 $122 Plastic PET$423$466$539$573$604$597$443$369$386$414$384$354$384$423$456$423 $429 Plastic HDPE Natural$665$620$648$709$744$691$584$529$584$596$573$549$533$579$644$665 $586 Plastic HDPE Colored$499$475$526$561$606$575$453$399$466$497$454$361$336$480$509$499 $456 Plastic Comingled 1-7$104$206 $180$160$130$63 $66 $104 $114 Plastic LLDPE Film$266$345 $363$343$285$268 $245$243 $266 $272 Plastic EPS$70$90 $70 $73 Waste and Recycling News Non Fiber Material Trends

New Guidelines for Plastic & other Grades  No mixed post consumer materials - 1-7, 3-7, 1&2, MRP ( Mixed rigids)  No PP Super sacks  No lower grade mixed ldpe films  No dirty films, no films with other materials, such as banding, trays, water bottles, sacks  No mixed industrial or “combo” containers Non-fiber Trade Sales: The “GREEN” Fence 11

Inbound Single Stream 12

Commodities Ready for Market 13

Challenges in Recycling Today Market volatility Collection “Mix” is changing Drive for greater material “diversion” Greater need for local supply Economics !

Recycling – Industry Trends Success Driven by Inter-dependent Relationships Gov’t Recycler/ Processor Manufacturer Consumer Hauler