1. 1 Sonoco Recycling – Material Markets VRA May 2013 Susan Albritton

2. 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.

3. 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

4.  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

5. 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: 1000+ Logistics: 150 power units; 1,000+ trailers

6. 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.

7. Historical OCC SE Yellow Sheet 7 JanFebMarAprMayJunJulAugSepOctNovDec Avg 1994253040507010014013090707590 $ 76 1995120150200 170140120705030 $ 123 199660 5040 45 60 $ 52 19976070 6560709012010080 70 $ 78 199875 6555 453530 $ 54 19993550 45659590 85 $ 69 20008595105115 105905545 $ 79 20014540 $ 40 200240 3545609013010075656050 $ 66 200350 6575 65 $ 65 2004658090 85 $ 85 200585 75 80 90 7560 $ 79 200655505565758510090857565 $ 72 20077095145120105 125135 125115 $ 118 2008115 125 120110 954525 $ 100 2009202545 607580 70 80 $ 58 2010110140175145130125120 130145160 $ 138 2011150140 150170175 160110 $ 147 2012110 135 125 110 90758095110 $ 108.33 Price > $100

8. SE Official Board Market Pricing OCC 8

9. 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. 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 2012-2013 Non Fiber Material Trends

11. 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

12. Inbound Single Stream 12

13. Commodities Ready for Market 13

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

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