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Date

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Company, LLC

July and July YTD Financial

August 23, 2007

Privileged and Confidential: The following material has been Your Company, LLC

Unit of measure

* Footnote

Source: Source 2

• July and July YTD Financial Product A

• Consolidated Company MD&A and Results

–Company P&L

–Balance Sheet and Cash Flow

–Safety

–LTM Bank EBITDA

• Company Business Unit MD&A and Results

–Summary

–Goods 1

–Goods 2

–Goods 3

–Goods 4

–Labels

Financial Product A Index

Unit of measure

* Footnote

Source: Source 3

($MM) July 2007 Better / (Worse) July2007 A 2006 A 2007 B 2006 A 2006 A % 2007 B 2007 B %

Net Revenue (inc. Intercompany)

Carton (inc. Giftbox) 97.5$ 94.2$ 101.1$ 3.3 3.5% (3.6) (3.6%)

Mills 39.6 32.2 35.5 7.4 23.1% 4.1 11.7%

Multiwall Bag 39.3 39.6 42.1 (0.3) (0.8%) (2.8) (6.7%)

Plastics 13.2 11.9 14.5 1.3 11.2% (1.3) (8.7%)Specialty 11.7 9.9 11.0 1.8 18.1% 0.6 5.7%Inks 3.0 2.5 2.7 0.5 19.3% 0.3 9.4%

Corporate (0.0) - - (0.0) nm (0.0) nmTotal Net Revenue (inc. Intercompany) 204.2 190.2 206.9 14.0 7.3% (2.7) (1.3%)

Adjusted EBITDA


Mills 5.8 4.2 5.1 1.6 39.0% 0.7 13.3%

Multiwall Bag 4.3 5.0 5.6 (0.7) (13.9%) (1.3) (23.2%)

Plastics 1.5 1.0 1.4 0.5 43.6% 0.1 8.0%Specialty 2.0 1.2 1.5 0.8 69.4% 0.5 34.5%Inks 0.2 0.1 0.1 0.1 80.1% 0.1 71.5%

Division Central - FC/Mills (1.0) (1.1) (0.9) 0.1 5.8% (0.1) (11.7%)

Division Central - Flexible (0.9) (1.0) (0.8) 0.1 10.4% (0.0) (4.7%)

Corporate (inc. FHI Properties) (3.0) (3.4) (3.4) 0.4 10.9% 0.4 12.6%Total Adjusted EBITDA 20.5 16.3 20.3 4.2 25.7% 0.1 0.7%

July

Financial Review

MD&A on Consolidated Company July Results

July Sales Results vs. Budget July Adj. EBITDA ($0.0MM) to Budget

• Overall sales unfavorable to budget ($8.3MM), primarily Goods 1, Goods 2, and Goods 3

• Goods 1 shipments continue strong, backlogs have fallen to 29 days, but seasonally strong, board pricing favorable $1.1MM

• June adj EBITDA on budget

• Mill results on budget, fiber impact ($1.5MM), offset by board prices, $2.4MM, volume unfavorable

Unit of measure

* Footnote

Source: Source 4

($MM) YTD July 2007 Better / (Worse) YTD July

2007 A 2006 A 2007 B 2006 A 2006 A % 2007 B 2007 B %

Net Revenue (inc. Intercompany)


Mills 251.8 225.5 239.8 26.3 11.6% 12.0 5.0%

Multiwall Bag 289.9 287.4 301.7 2.5 0.9% (11.8) (3.9%)

Plastics 88.3 94.3 100.3 (5.9) (6.3%) (11.9) (11.9%)

Specialty 71.6 64.0 72.4 7.6 11.9% (0.7) (1.0%)

Inks 20.4 19.4 20.4 1.0 5.2% (0.0) (0.1%)

Corporate (0.0) - - (0.0) nm (0.0) nmTotal Net Revenue (inc. Intercompany) 1,370.8 1,321.9 1,386.1 48.9 3.7% (15.3) (1.1%)

Adjusted EBITDA

Carton (inc. Giftbox) 69.9$ 65.6$ 67.1$ 4.3 6.5% 2.8 4.2%

Mills 32.2 24.7 31.3 7.5 30.4% 0.8 2.6%

Multiwall Bag 32.5 33.6 38.2 (1.1) (3.4%) (5.7) (14.9%)

Plastics 8.9 8.1 9.2 0.8 10.1% (0.3) (3.0%)

Specialty 10.3 6.4 9.0 3.8 59.7% 1.3 14.7%

Inks 0.9 0.6 0.7 0.3 51.2% 0.2 26.6%

Division Central - FC/Mills (7.9) (8.5) (7.5) 0.5 6.5% (0.5) (6.1%)

Division Central - Flexible (6.1) (6.5) (6.0) 0.4 6.6% (0.1) (2.3%)

Corporate (inc. FHI Properties) (19.8) (24.2) (24.6) 4.4 18.1% 4.8 19.4%Total Adjusted EBITDA 120.8 99.8 117.4 21.0 21.0% 3.3 2.9%

YTD July

Financial ReviewMD&A on Consolidated Company July YTD Results

July YTD Sales Results vs. Budget July YTD Adj. EBITDA $3.1MM Favorable to Budget

• Total sales ($12.6MM) unfavorable

• Carton sales favorable 0.1% with growth in some key accounts

• Carton favorable $3.0MM, volume and strong cost reduction offset by price and board recovery

• Goods 1 on budget, fiber price impact ($8.1MM); offset by price, energy and cost reduction

Unit of measure

* Footnote

Source: Source 5

(0.9)

5.06.4

4.83.3

1.8 0.2

(1.2)(7.2)(8.2)

(0.6)

120.8117.4

$0

$20

$40

$60

$80

$100

$120

$140

July YTDBudget Adj

EBITDA

Price Volume Mix Inf lation /Deflation

AOS & OtherCosts

Procurement Capex Driven Fixed Inks & Portage Division Central Corporate July YTDActual Adj.

EBITDA

Mill Board price

$9,075M, Carton offset of

($4,698M)

Flexible Group

($6,126M), Folding Carton

($779M), Mills,

$636M

Multiwall - product

mix $852M, Carton $530M

Mill Fiber ($10,442M), Mill energy $1,093M

AOS, $6,029M, one time $2,668M,

other offsetting ($2,259M)

Salaries, SG&A

Overall AOS/Cost reduction (excl. one time) favorable to budget by $5.0MM

Bridge YTD July Budget to ActualFinancial Review

($ in Millions)

Company June YTD EBITDA ahead of Budget by $3.1MM or 3.2%

Company 7/07 YTD Budget to Actual EBITDA Bridge

Unit of measure

* Footnote

Source: Source 6

Financial Review

Cost Savings Summary vs. Budget

YTD Company is tracking $6.6MM ahead of the budgeted cost savings target. Notes (1): Favorable variance to budget includes Mill SRC rebate above budget, $0.4MM

($000)

JAN FEB MAR APR MAY JUN JULYTD 07 Actual Actual Actual Actual Actual Actual Actual

Actual/Forecast Savings

Plant InitiativesAOS - Waste 1,962.3 390.5 94.1 215.0 421.6 304.6 288.0 248.4 AOS - Productivity / Other 15,630.5 1,876.5 1,837.3 2,267.5 2,618.4 2,240.9 2,575.5 2,214.5 CAPEX 2,375.2 120.2 223.4 282.2 300.3 349.3 466.4 633.5 Procurement - Plant 2,809.8 198.4 380.4 481.5 494.0 344.8 466.1 444.5 Fixed Costs - Plant 2,047.0 (239.5) 244.2 (346.2) 386.5 231.6 549.9 1,220.6 Fixed Costs - RIF 4,725.3 204.4 641.4 716.6 767.2 778.8 786.5 830.4 Fixed Costs - T & E 1,268.7 129.6 169.8 237.5 173.4 196.8 186.7 175.0 Compressible (60.6) (16.5) (6.0) (15.1) (0.9) (11.7) (4.7) (5.6) AOS Implementation Expenses (1,351.6) (41.2) (28.8) (167.6) (312.9) (366.3) (278.8) (156.0) Other Implementation Expenses - - - - - - - -

Subtotal Plant Initiatives 29,406.8 2,622.3 3,555.8 3,671.4 4,847.6 4,068.8 5,035.6 5,605.4

Procurement & Corporate InitiativesBoard / Fiber / Resin 1,427.2 54.2 50.7 617.5 226.2 117.8 216.2 144.6 Adhesives 243.5 7.2 (15.3) (1.8) 71.5 54.6 66.3 60.9 Chemicals 54.9 0.5 (4.7) (0.3) 5.1 19.4 15.9 18.9 Corrugated 1,067.4 13.0 20.5 97.8 198.0 283.4 155.6 299.2 Inks / Solvents / Coatings 680.5 106.7 78.8 101.7 115.8 34.7 116.2 126.6 Other Raw Materials (269.9) 16.0 16.5 (27.5) (161.5) (13.2) (52.4) (47.7) MRO 35.8 - - 4.1 - 2.5 9.3 19.8 Logistics 122.5 2.6 10.7 8.5 14.4 18.0 35.7 32.9 Fixed Costs 24.0 - - - - - 12.0 12.0

Subtotal Corporate Initiatives 3,385.9 200.2 157.2 800.0 469.4 517.2 574.7 667.1

Grand Totals 32,792.6 2,822.5 3,713.0 4,471.4 5,317.0 4,586.0 5,610.3 6,272.5

Budget Savings

AOS - Waste 2,271.9 262.1 259.1 296.1 345.1 354.0 362.2 393.4 AOS - Productivity / Other 6,294.7 665.1 715.1 915.2 962.0 964.8 964.6 1,107.8 CAPEX 3,493.3 173.7 258.1 392.2 510.8 565.8 663.5 929.1 Procurement - Plant 789.6 104.9 104.9 104.9 105.8 105.8 106.8 156.3 Fixed Costs - Plant (483.6) (317.9) (317.9) (317.9) 117.5 117.5 117.5 117.5 Fixed Costs - RIF 4,640.3 229.6 705.8 737.7 738.2 744.8 742.4 741.8 Fixed Costs - T & E 458.1 66.6 63.6 63.6 66.6 65.6 65.6 66.6 Compressible - - - - - - - - Corporate Initiatives 6,137.9 538.3 621.9 743.6 974.1 1,035.1 1,029.4 1,195.3 Grand Totals 23,602.1 1,722.6 2,410.7 2,935.5 3,820.0 3,953.4 4,052.1 4,707.9

Variance to Budget

AOS - Waste (309.6) 128.3 (164.9) (81.1) 76.6 (49.3) (74.2) (145.0) AOS - Productivity / Other 9,335.9 1,211.3 1,122.1 1,352.4 1,656.4 1,276.1 1,610.9 1,106.7 CAPEX (1,118.0) (53.5) (34.8) (110.1) (210.5) (216.5) (197.1) (295.5) Procurement - Plant 2,020.2 93.5 275.5 376.6 388.2 238.9 359.3 288.2 Fixed Costs - Plant 2,530.6 78.3 562.0 (28.4) 269.0 114.2 432.4 1,103.1 Fixed Costs - RIF 85.0 (25.2) (64.4) (21.2) 29.1 34.0 44.1 88.6 Fixed Costs - T & E 810.7 63.0 106.2 173.9 106.8 131.2 121.1 108.4 Compressible (60.6) (16.5) (6.0) (15.1) (0.9) (11.7) (4.7) (5.6) Corporate Initiatives (2,752.1) (338.1) (464.7) 56.4 (504.7) (517.9) (454.7) (528.3) Implementation Expenses (1,351.6) (41.2) (28.8) (167.6) (312.9) (366.3) (278.8) (156.0) Grand Totals 9,190.5 1,099.9 1,302.3 1,535.9 1,497.0 632.6 1,558.2 1,564.6

Unit of measure

* Footnote

Source: Source 7

July July 2006 Better / (Worse) July($MM) 2007 A 2006 BL 2007 B 2006 BL $ 2006 BL % 2007 B $ 2007 B %

Total net revenue (inc. intercompany) 204.2$ 190.2$ 206.9$ 14.0$ 7.3% (2.7)$ (1.3%)

Total material costs 100.2 90.7 101.6 (9.5) (10.4%) 1.4 1.3%

Total hourly wages 21.4 21.6 22.1 0.2 0.9% 0.7 3.2%Hourly fringes 9.1 8.6 8.8 (0.4) (4.9%) (0.3) (3.4%)Repairs and Maintenance 6.1 5.1 5.6 (1.0) (19.1%) (0.6) (10.2%)Energy costs 8.1 6.9 7.9 (1.2) (17.2%) (0.2) (2.4%)Other converting 9.9 10.9 9.8 1.0 9.4% (0.1) (1.2%)Total conversion costs 54.5 53.1 54.0 (1.4) (2.6%) (0.5) (0.8%)

Shipping and delivery 6.0 5.9 6.6 (0.1) (2.1%) 0.6 8.6%Total variable costs 160.7 149.8 162.2 (10.9) (7.3%) 1.5 0.9%

Contribution margin 43.5$ 40.4$ 44.7$ 3.0$ 7.5% (1.2)$ (2.7%)% margin 21.3% 21.3% 21.6%

Fixed manufacturing 11.4 11.8 11.3 0.4 3.5% (0.1) (0.6%)Depreciation 7.3 5.8 8.1 (1.5) (25.3%) 0.8 9.4%SG&A 14.2 14.0 13.8 (0.2) (1.5%) (0.4) (2.8%)Other fixed costs 0.0 (0.2) (0.0) (0.2) 103.0% (0.0) 132.5%Total fixed costs 32.9 31.5 33.2 (1.4) (4.6%) 0.3 0.9%

Other income / (expense) 0.3 0.5 (0.2)

Operating income 10.9$ 9.5$ 11.3$ 1.5$ 15.3% (0.4)$ (3.3%)% margin 5.3% 5.0% 5.5%

EBITDA 18.2$ 15.3$ 19.4$ 2.9$ 19.1% (1.1)$ (5.8%)% margin 8.9% 8.0% 9.4%

Adjustments 2.3 1.0 1.0 1.3 128.9% 1.3 128.9%Adjusted EBITDA 20.5$ 16.3$ 20.3$ 4.2$ 25.7% 0.1$ 0.7%

% margin 10.0% 8.6% 9.8%

Discontinued Ops - Adj. EBITDA (0.0) (0.0) (0.0) 0.0 (18.4%) (0.0) 48.2%Total Adjusted EBITDA 20.5 16.3 20.3 4.2 25.8% 0.1 0.6%

Detailed Consolidated Company July P&L

Financial Review

June revenue down year over year as follows: FC volume/price ($3.1MM) Mill volume/price $4.6MM Bags volume/price ($1.3MM) Plastics/Labels volume/price ($0.5)MM

June adjustments over budget by $3.3MM due to consulting fees $2.3MM, vehicle allowance program buyout $1.0MM, severance costs $0.2MM

EBITDA up $5.5MM vs. 2006BL and on budget

Unit of measure

* Footnote

Source: Source 8

YTD July YTD July 2006 Better / (Worse) YTD July($MM) 2007 A 2006 BL 2007 B 2006 BL $ 2006 BL % 2007 B $ 2007 B %

Total net revenue (inc. intercompany) 1,370.8$ 1,321.9$ 1,386.1$ 48.9$ 3.7% (15.3)$ (1.1%)

Total material costs 677.4 649.6 685.4 (27.7) (4.3%) 8.1 1.2%

Total hourly wages 147.1 155.8 152.4 8.7 5.6% 5.4 3.5%Hourly fringes 63.3 65.5 63.2 2.2 3.4% (0.1) (0.2%)Repairs and Maintenance 42.8 38.3 39.0 (4.4) (11.6%) (3.8) (9.7%)Energy costs 54.5 56.0 56.7 1.6 2.8% 2.3 4.0%Other converting 60.9 47.4 55.5 (13.5) (28.4%) (5.4) (9.7%)Total conversion costs 368.5 363.1 366.8 (5.4) (1.5%) (1.7) (0.5%)

Shipping and delivery 43.2 41.3 45.0 (1.9) (4.6%) 1.8 4.0%Total variable costs 1,089.0 1,054.0 1,097.2 (35.1) (3.3%) 8.2 0.7%

Contribution margin 281.8$ 267.9$ 288.9$ 13.8$ 5.2% (7.1)$ (2.5%)% margin 20.6% 20.3% 20.8%

Fixed manufacturing 79.0 79.1 80.0 0.1 0.1% 1.0 1.2%Depreciation 49.8 40.5 54.6 (9.3) (23.0%) 4.8 8.8%SG&A 107.2 100.8 99.5 (6.4) (6.4%) (7.7) (7.7%)Other fixed costs 0.6 (1.1) (0.1) (1.7) 149.5% (0.7) 643.8%Total fixed costs 236.6 219.2 234.0 (17.4) (7.9%) (2.6) (1.1%)

Other income / (expense) 1.9 2.7 0.0

Operating income 47.1$ 51.4$ 54.9$ (4.4)$ (8.5%) (7.8)$ (14.2%)% margin 3.4% 3.9% 4.0%

EBITDA 96.9$ 91.9$ 109.5$ 5.0$ 5.4% (12.6)$ (11.5%)% margin 7.1% 7.0% 7.9%

Adjustments 23.9 7.9 7.9 16.0 201.4% 16.0 201.4%Adjusted EBITDA 120.8$ 99.8$ 117.4$ 21.0$ 21.0% 3.3$ 2.9%

% margin 8.8% 7.6% 8.5%

Discontinued Ops - Adj. EBITDA (1.1) 2.1 (0.8) (3.2) (150.2%) (0.2) 27.0%Total Adjusted EBITDA 119.7 101.9 116.6 17.8 17.4% 3.1 2.7%

Detailed Consolidated Company July YTD P&LFinancial Review

June revenue up year over year as follows FC volume/price $14.2MM Mill volume/price $18.6MM Bags volume/price $2.8MM Plstcs/Lbls volume/price

($2.8MM)

Conversion costs Carton inventory change of ($2.0MM)

June YTD adjustments over budget by $14.7MM due to severance costs $6.1MM, consulting fees $5.0MM, CC dues buyout $0.5MM, vehicle allowance program buyout $1.0MM, duplicative and

EBITDA up $16.7MM vs. 2006 BL and $3.1MM vs. budget

Unit of measure

* Footnote

Source: Source 9

Company Balance Sheet SummaryFinancial Review

Generally cash generating working capital movements since year end 2006

Receivables

7.1

106.6

190.2

210.2203.7

196.3187.0

175.5182.4 185.8 187.9 186.6 191.2 190.1

$-

$50.0

$100.0

$150.0

$200.0

$250.0

6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Accounts payable

82.0

124.3

174.8 174.4

160.4 158.8

146.3138.3

147.9 150.7 152.3 148.0158.4

152.1

$-

$50.0

$100.0

$150.0

$200.0

6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Accrued wages, related taxes, current liabilities

47.0

60.6

83.5 84.989.6

78.976.4

86.389.4

79.6 77.2

84.4

73.7

88.4

$-

$20.0

$40.0

$60.0

$80.0

$100.0

6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Inventories (FIFO)

225.1 224.7

280.6 274.9261.2

242.7231.3 227.7 224.7 227.1 227.2 230.8 233.5 231.8

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

S te ppe d up

Inve nto ry Am o rt.

$ 3.4 $ 3.4 $ 3.4 $ 3.4 $ 7.2 $ 15.9 ($ 0.1) $ 0.0 $ 0.1

Unit of measure

* Footnote

Source: Source 10

2007 Actual Cash Generation - July YTD

$192.0$151.6

$99.2 $93.2

-93.9

(0.7)

(6.3)(52.1)

(40.4)

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

12/31/06 Cash Cash EBITDA Distributions toLPs

Changes inWorking Capital

Other CashChanges

Operations Cash CapitalExpenditures

Unlevered Cash Net Interest Paid Mandatory DebtAmortization

Other 6/30/07 Cash

Company Cash Flow SummaryFinancial Review

Despite puts and takes, cash generation $0.8MM above budget June YTD

($MM)

($MM)

($14.7MM) unfavorable variance to budget in

Cash EBITDA

Capital expenses lower than budget by $5.2MM

Interest paid unfavorable to

budget by ($2.9MM)

$27.8MM favorable working capital savings

Mandatory Debt Amortization in-line

with budget$0.7MM unfavorable.

$7.6MM favorable vs. budget due to

pension and timing, ($6.3MM)

unfavorable due to Field acquisition payments (taxes)

2007 Budget Cash Generation - July YTD

$179.8

$131.7

$72.7$99.2

108.7

(6.2)(52.8)

(48.1)

(28.1)

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

12/31/06 Cash Cash EBITDA Distributions toLPs

Changes inWorking Capital

Other CashChanges

OperationsCash

CapitalExpenditures

Unlevered Cash Net InterestPaid

Mandatory DebtAmortization

Other 6/30/07 Cash

Unit of measure

* Footnote

Source: Source 11

LTM Bank EBITDA and Net Debt / Bank EBITDAFinancial Review

Ended June with $233.5MM of Bank EBITDA, $1,071.4MM of Net Debt

4.6x Net Debt / Bank EBITDA vs. covenant of 6.5x ($68.7MM or 29.4% cushion)

($MM)

Company LTM Bank EBITDA and Net Debt / Bank EBITDA

5.0x 4.7x 4.6x 4.5x 4.6x 4.6x 4.6x 4.6x 4.5x

nm nm

$211.7 $215.1 $215.9$228.0 $228.3 $230.2 $232.0 $231.5 $231.4 $232.9 $235.6

$-

$50.0

$100.0

$150.0

$200.0

$250.0

3/31/06 6/30/06 9/30/06 12/31/06 1/31/07 2/28/07 3/31/07 4/30/07 5/31/07 6/30/07 7/31/070.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Unit of measure

* Footnote

Source: Source 12

Company Detailed Consolidated Balance SheetFinancial Review

Cash position of $87.7MM, down $7.2MM from May

DEC JAN FEB MAR APR MAY JUNE JULY Change From Change From 2006 2007 2007 2007 2007 2007 2007 2007 Previous Month Prior YE

Current assets Cash 99,170$ 110,391$ 114,507$ 95,611$ 93,258$ 94,900$ 87,710$ 93,181$ 5,471$ (5,989)$ Accounts receivable, net 185,784 175,526 182,392 185,793 187,936 186,625 191,211 190,661 (550) 4,877 Inventories 231,325 227,702 224,739 227,059 227,163 230,809 233,535 231,817 (1,718) 492 Prepaid expenses and other current assets 10,752 10,933 10,362 12,207 11,366 11,604 9,993 13,838 3,845 3,086 Total current assets 527,031 524,552 532,000 520,670 519,723 523,938 522,449 529,497 7,048 2,466 Gross property, plant and equipment 657,517 659,642 664,283 678,378 681,819 687,431 695,092 689,559 (5,533) 32,042 Capitalized leases 3,620 3,620 3,620 3,620 3,562 3,562 3,562 3,562 - (58) Less accumulated depreciation and amortization (39,490) (45,837) (52,906) (59,553) (65,533) (72,191) (78,941) (84,144) (5,203) (44,654) Property, plant and equipment, net 621,647 617,425 614,997 622,445 619,848 618,802 619,713 608,977 (10,736) (12,670) Goodwill 358,934 358,678 360,992 359,307 365,417 366,217 366,305 375,668 9,363 16,734 Other intangible assets, net 134,263 133,574 132,840 134,469 133,653 132,838 132,022 137,739 5,717 3,476 Deferred debt issuance costs 22,548 22,180 21,900 21,645 21,348 21,160 20,874 20,579 (295) (1,969) Other assets 6,816 6,564 6,801 6,551 6,381 6,197 8,416 8,044 (372) 1,228

Total Assets 1,671,239$ 1,663,020$ 1,669,597$ 1,664,798$ 1,666,370$ 1,669,152$ 1,669,779$ 1,680,504$ 10,725$ 9,265$

Net Working Capital 294,293 296,782 291,497 287,222 281,876 283,159 279,862 280,560 698 (13,733)

Current Ratio 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.1 1.1 0.2

Current liabilities Current maturities of long-term debt 10,312$ 8,250$ 8,250$ 8,250$ 8,250$ 8,250$ 10,313$ 8,250$ (2,063)$ (2,062)$ Current maturities of lease obligations 205 205 203 201 168 162 155 149 (6) (56) Current maturities of long-term debt 10,517 8,455 8,453 8,451 8,418 8,412 10,468 8,399 (2,069) (2,118)

Accounts payable 145,248 138,324 147,942 150,659 152,270 147,966 158,413 152,093 (6,320) 6,845

Accrued wages and related taxes 42,191 43,414 45,441 41,326 41,370 44,006 44,185 42,215 (1,970) 24 Interest payable 4,446 8,327 11,174 4,687 7,783 11,625 4,672 8,191 3,519 3,745 Other current liabilities 23,411 22,992 18,206 20,370 20,370 21,589 17,489 19,899 2,410 (3,512) Accrued liabilities 70,048 74,733 74,821 66,383 69,523 77,220 66,346 70,305 3,959 257

Purchase accounting reserves 1,159 1,344 4,981 4,211 4,300 4,133 4,561 3,941 (620) 2,782 Accrued restructuring costs 5,766 4,914 4,306 3,744 3,336 3,048 2,799 14,199 11,400 8,433 Accrued restructuring 6,925 6,258 9,287 7,955 7,636 7,181 7,360 18,140 10,780 11,215 Total current liabilities 232,738 227,770 240,503 233,448 237,847 240,779 242,587 248,937 6,350 16,199

Long-term debt, less current maturities Long-term debt 1,152,626 1,152,625 1,152,625 1,152,625 1,150,562 1,150,563 1,148,500 1,148,500 - (4,126) Capital leases 204 187 172 156 148 139 131 123 (8) (81) Total long-term debt 1,152,830 1,152,812 1,152,797 1,152,781 1,150,710 1,150,702 1,148,631 1,148,623 (8) (4,207)

Long-term pension and retiree medical liability 35,819 36,710 38,084 39,218 40,728 41,446 45,135 45,222 87 9,403 Other long-term liabilities 5,155 5,244 5,393 7,061 6,999 8,261 1,719 1,732 13 (3,423) Deferred income taxes 177 177 177 177 177 177 177 177 - -

Equity Additional paid-in capital 305,000 305,000 305,000 305,000 305,000 305,000 305,000 305,000 - - Retained earnings (deficit) (53,496) (57,709) (65,373) (65,953) (68,157) (70,279) (70,224) (65,941) 4,283 (12,445) Other comprehensive income (loss) (6,984) (6,984) (6,984) (6,934) (6,934) (6,934) (3,246) (3,246) - 3,738 Total equity 244,520 240,307 232,643 232,113 229,909 227,787 231,530 235,813 4,283 (8,707)

Total Liabilities and Equity 1,671,239$ 1,663,020$ 1,669,597$ 1,664,798$ 1,666,370$ 1,669,152$ 1,669,779$ 1,680,504$ 10,725$ 9,265$

Unit of measure

* Footnote

Source: Source 13

JAN FEB MAR APR MAY JUNE JUL YTD 2007 2007 2007 2007 2007 2007 2007 2007

Operating Activities Net (loss) income (4,212)$ (7,665)$ (580)$ (2,203)$ (2,122)$ 54$ 4,284$ (12,444)$ Adjustments to reconcile net (loss) income to net cash provided by (used for) operating activities: Depreciation expense 6,580 6,587 6,549 6,849 6,808 6,805 5,201 45,379 Amortization expense 778 763 1,407 852 844 846 1,311 6,801 Amortization of deferred debt issuance costs 368 280 255 297 188 287 294 1,969 Pension & post-retirement benefits 1,004 1,381 1,051 594 1,201 284 994 6,509 Non-cash foreign currency loss (gain) 46 201 57 165 (23) (249) (160) 37 Non-cash restructuring charges - - - - - - - - IC note (receivable) payable with CPD - - - - - - - - IC trade (receivable) payable with CPD (155) 79 340 (247) (17) - (829) (829) (Gain) loss on sale of fixed assets (17) (5) 1 (6) 20 278 (310) (39) Changes in current assets and liabilities, net of effects from acquisitions and dispositions: Accounts receivable, net 11,059 (6,808) (3,369) (1,391) 721 (4,708) 469 (4,027) Inventories 3,530 978 (2,247) 80 (3,388) (2,544) 1,734 (1,857) Prepaid expenses and other current assets (181) 571 (1,845) 1,619 (236) 831 (3,844) (3,085) Accounts payable and accrued liabilities (7,388) 10,373 (220) 1,098 (711) 5,691 (4,981) 3,862 Interest payable 8,345 7,418 8,291 7,991 8,267 8,006 7,814 56,132 Interest paid (4,464) (4,877) (14,474) (4,895) (4,425) (14,959) (4,048) (52,142) Other--net 86 (373) (82) 145 600 204 213 793 Net cash provided by (used for) operating activities 15,379 8,903 (4,866) 10,948 7,727 826 8,142 47,059

Investing Activities Expenditures for property, plant and equipment (2,078) (4,743) (13,955) (5,048) (6,038) (7,987) (3,678) (43,527) Proceeds from property disposals and sale of investments - - - 25 - - 3,084 3,109 Payments related to acquisition - (27) (58) (6,231) - (15) - (6,331) Net cash used for investing activities (2,078) (4,770) (14,013) (11,254) (6,038) (8,002) (594) (46,749)

Financing Activities Net repayments of long-term debt (2,080) (17) (17) (2,047) (47) (14) (2,077) (6,299) Capital contribution from parent - - - - - - - - Deferred debt issuance costs - - - - - - - - Net cash used for financing activities (2,080) (17) (17) (2,047) (47) (14) (2,077) (6,299)

Effect of exchange rate changes on cash - - - - - - - -

Increase (decrease) in cash and cash equivalents 11,221 4,116 (18,896) (2,353) 1,642 (7,190) 5,471 (5,989) Cash and cash equivalents: Beginning of period 99,170 110,391 114,507 95,611 93,258 94,900 87,710 99,170 End of period 110,391$ 114,507$ 95,611$ 93,258$ 94,900$ 87,710$ 93,181$ 93,181$

Company Detailed Consolidated Cash FlowFinancial Review

Used $7.2MM in June with an ending cash balance of $87.7MM vs. Junebudget ending cash of $86.9MM

Unit of measure

* Footnote

Source: Source 14

July 2007

ALTIVITY # ManHours RCR # ManHours RCR J F M A M J J A S O N D

Carton Group 99 8,184,353 2.42 26 4,721,538 1.10 1 3 4 1 3 5 9 26

0.30 0.94 1.09 0.31 0.84 1.51 2.70 1.10

Bag Packaging Group 28 4,823,390 1.16 7 2,704,184 0.52 2 0 2 0 1 0 2 7

1.05 0.00 0.94 0.00 0.51 0.00 1.06 0.52

Mill Group 31 1,967,694 3.15 8 1,140,516 1.40 2 1 0 1 1 2 1 8

2.34 1.31 0.00 1.26 1.22 2.54 1.24 1.40

Plastics Group 6 1,094,380 1.10 5 632,795 1.58 1 0 0 1 0 3 0 5

2.24 0.00 0.00 2.28 0.00 6.83 0.00 1.58

Specialty Group 12 947,661 2.53 1 536,848 0.37 0 0 0 0 0 1 0 1

0.00 0.00 0.00 0.00 0.00 2.64 0.00 0.37

Other Group 0 488,000 0.00 0 301,000 0.00 0 0 0 0 0 0 0 0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL ALTIVITY: 176 17,505,478 2.01 47 10,036,881 0.94 6 4 6 3 5 11 12 47

0.84 0.59 0.77 0.44 0.67 1.56 1.69 0.94

2007 by Month2007

Year End 2006 YTD 2007

Monthly RCR:

Monthly RCR:

Monthly RCR:

Monthly RCR:

Monthly RCR:

Monthly RCR:

Monthly RCR:

OSHA Recordable Accident SummarySafety Review

June was a disappointing month overall, with tremendous performance in Bag. First half results are outstanding.

Unit of measure

* Footnote

Source: Source 15

Financial Review

Salaried Headcount Review

94 fewer salaried headcount at 6/30/07 than at 12/31/06 and 170 fewer at 6/30/07 than in the 2007 budget

Salaried Headcount Reporting Detail (3)

7/31/2007

12/31/06 (1) 2007 Budget (2) 4/30/07 (1) 5/31/07 (1) 6/30/07 (1) 7/31/07 (1)6/30/07 vs 12/31/06

6/30/07 vs 2007 Budget

Mills 198 200 188 188 191 195 (3.5%) (4.5%)

Folding Carton 543 523 480 474 472 478 (13.1%) (9.8%)

Multiwall Bags 362 386 337 338 336 340 (7.2%) (13.0%)

Plastics 117 117 104 103 101 101 (13.7%) (13.7%)

Specialty (3) 95 104 90 89 89 86 (6.3%) (14.4%)

Inks 70 75 68 70 69 69 (1.4%) (8.0%)

Division Central / Corporate 272 328 306 306 305 303

Total Altivity Salaried Headcount 1,657 1,733 1,573 1,568 1,563 1,572 (5.7%) (9.8%)

Difference vs. 12/31/06 (84) (89) (94) (85)

Difference vs. 2007 Budget (160) (165) (170) (161)

Notes:(1) Actual salaried headcount (excludes budgeted open positions)(2) Budgeted open positions and salaried headcount, pre-$11.5MM headcount reduction(3) Amounts have been restated to reflect the break out of the Specialty group

Unit of measure

* Footnote

Source: Source 16

•July and July YTD Financial Product A

•Consolidated Company MD&A and Results

–Company P&L

–Balance Sheet and Cash Flow

–Safety

–LTM Bank EBITDA

•Company Business Unit MD&A and Results

–Summary

–Goods 1

–Goods 2

–Goods 3

–Goods 4

–Labels

Financial Product A Index

Unit of measure

* Footnote

Source: Source 17

Actual Last Year Budget Actual Last Year Budget Actual Last Year Budget Actual Last Year Budget

Month 39.6$ 32.2$ 35.5$ 5.8$ 4.2$ 5.1$ 21.9% 21.2% 22.4% 4.8$ 3.7$ 4.6$

Actual Better / (Worse) 7.4$ 4.1$ 1.6$ 0.7$ 78 bps (49 bps) (1.1)$ (0.1)$

% Actual Better / (Worse) 23% 12% 39% 13% (29%) (2%)

YTD 251.8$ 225.5$ 239.8$ 32.2$ 24.7$ 31.3$ 20.1% 19.9% 20.8% 32.7$ 26.4$ 32.4$

Actual Better / (Worse) 26.3$ 12.0$ 7.5$ 0.9$ 18 bps (78 bps) (6.4)$ (0.3)$

% Actual Better / (Worse) 12% 5% 31% 3% (24%) (1%)

Fixed Costs ($MM)Sales ($MM) Adjusted EBITDA ($MM) Contribution Margin (%)

Goods 1MD&A on Consolidated Results

Group Outlook and Focus AreasMD&A for July and July YTD Results

• July fiber $155/ton vs. budget of $120/ton or ($35)/ton unfavorable to budget. Total EBITDA impact of ($2.3MM) vs. budget.

• YTD Fiber pricing $142/ton vs. budget of $119/ton or ($23)/ton unfavorable to budget. YTD total fiber impact ($10.4MM) EBITDA vs. budget. Favorable fiber savings include commission refund accrual $80M and grade substitutions $450M (mostly Plant 1 and Plant 2).

• July sales price $44/ton favorable due to transfer and trade price increases, July EBITDA impact of $2.8MM versus budget, YTD price $23/ton favorable EBITDA impact $6.7MM

• YTD production favorable to budget 3,432 tons, EBITDA $760M, shipments favorable 4,962 tons; 2,223 tons F/G inventory build versus 3,753 ton F/G inventory build budgeted.

• Energy price unfavorable ($.2MM) for the month but still $1.2MM favorable YTD on hedges at legacy CPD Goods 1 and favorable oil cost at Tennessee on 50% of the volume first half of 2007. Oil at TN was favorable to budget through April at $.88/gal but has climbed to $1.13/gal in July, so the mill will not be burning oil in August. Purchase power is $200M favorable YTD due to reduced riders and energy reduction programs.

• Backlogs continued at a seasonally strong 31 days in July Industry operating rate remaining at 99+% versus 95% last year.

• Built only 285 tons of F/G inventory in July. F/G inventories 23,675 tons at 7/31/07 (versus 26M ton budget)

Customer: Implemented $100/ton price increase to Gray Box in July. Picked up 1,200 tons for Customer 4 and a new item for Customer 2 with a 3,000 ton potential annually. Also, expect to gain 5,000 tons from East Container that can be run at San Diego or any of the Midwest Goods 1. Added four new accounts at Bloomington in July - 1, 2, 3 and 4.

Focus Plant: Baltimore productivity of 372 TPD exceeded plan by 22 TPD in July for the second best month this year. July EBITDA of $719M was ($130M) unfavorable to plan due to favorable volume of 679 tons produced and 1,056 tons shipped, +$160M EBITDA offset by spread difference of ($5)/ton unfavorable or ($60M) EBITDA (sales price fav $31/ton versus fiber unfav $36/T), energy ($13)/ton or ($150M) EBITDA and higher spending on productivity improvement projects.

AOS: Continue implementation at Plants. All four Goods 1 will complete implementation by September 30. Plant 20 finished AOS implementation during 1Q. Plant results are excellent - EBITDA is $3,491M ahead of plan YTD and productivity is +38 TPD favorable to plan YTD. AOS is also beginning to gain traction at Plant 5, Plant 7 and Plant 9 as well.

Business:

Wastepaper – Cost is escalating in August by $1/ton to $149/ton. Cost is expected to remain flat in September before subsiding in Q4. However, the Q4 cost curve is Product A flat and is on average $13/ton higher than last month's forecast.

Sales Price – SP contractual increase of $34/ton effective 8/1/07 that will benefit overall division sales price by $1.30/ton.

CB supply remaining seasonally tight but stabilizing. Qualification of offshore board suppliers appears to be on the increase.

Fuel is now $.2MM/month unfavorable to budget in July due to CD hedges at $7.83/mmbtu (vs. $7.50 budget) and much higher oil prices at TN. TN not burning oil in August due to price.

August Forecast: EBITDA forecast of $5.8MM under budget by ($.2MM) – Fiber escalating by another $1 .50/ton in August over July EBITDA ($100M). San Diego 1 1/2 days annual maintenance shutdown delayed from July. San Diego cogen will be down one week for hot plate replacement costing ($150M). Fuel cost continues to be higher than plan costing ($200M). Continuation of the SC bad debt provision build is ($40M) . F/G inventory ship-out of 341 tons forecast in August.

Unit of measure

* Footnote

Source: Source 18

Company Mill Gross Pricing and Profit Contribution Per TonGoods 1

Excellent July productivity boosted margins

Pricing has increased due to the recent industry-wide price increases.

Improved operations and the March price increase are restoring margins

March SRC refund accrual added $10/ton

Gross Pricing per Ton

$523 $520$526

$531 $529 $529 $525$519 $522 $524 $521 $521

$529 $531 $529$538

$531 $530$535

$545 $543 $544 $547 $542

$558

$578 $581 $580

$605 $610

$554

$500

$520

$540

$560

$580

$600

$620

1/05 2/05 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Gross Contribution per Ton

$212$205

$221$212

$227

$215

$232

$205 $203 $199

$184

$170

$198$193 $191

$221$212 $209

$221$214 $215

$220$215

$210 $209 $208

$219 $218

$229

$251

$241

$150

$170

$190

$210

$230

$250

$270

1/05 2/05 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Unit of measure

* Footnote

Source: Source 19

Summary P&L

Goods 1

$/ton Act LY Bud

Price $593 $526 $556

$/ton Act LY Bud

Fiber $155 $115 $120

Productivity projects, Annual shutdown expense timing.

vs. budget

F/G fluc .3

Supply timing ( .1)

Mills P&L

July July Better / (Worse) July YTD July YTD July Better / (Worse) YTD July($MM) 2007 A 2006 BL 2007 B 2006 BL % 2007 B $ 2007 B % 2007 A 2006 BL 2007 B 2006 BL % 2007 B $ 2007 B %

Volume (units) 66,112 60,986 63,842 8.4% 2,270.0 3.6% 441,012 430,118 436,050 2.5% 4,962.0 1.1%Pricing ($/unit) 599 528 555 13.5% 43.6 7.8% 571 524 550 8.9% 21.1 3.8%

Total net revenue (inc. intercompany) 39.6$ 32.2$ 35.5$ 23.1% 4.1$ 11.7% 251.8$ 225.5$ 239.8$ 11.6% 12.0$ 5.0%

Total material costs 14.1 10.5 11.3 (33.8%) (2.7) (24.1%) 87.6 69.4 77.3 (26.2%) (10.2) (13.2%)

Total hourly wages 3.0 3.1 3.1 0.7% 0.0 0.8% 20.7 20.3 20.8 (1.9%) 0.1 0.5%Hourly fringes 1.3 1.3 1.4 3.6% 0.1 7.0% 9.4 10.2 10.1 7.2% 0.6 6.4%Repairs and Maintenance 2.7 2.1 2.1 (26.1%) (0.6) (26.1%) 17.4 14.3 15.0 (22.1%) (2.5) (16.4%)Energy costs 5.7 4.6 5.5 (24.4%) (0.3) (5.3%) 38.4 39.4 39.3 2.5% 0.9 2.3%Other converting (includes F/G change) 2.2 1.8 2.2 (17.5%) 0.1 2.6% 14.9 14.5 14.1 (2.7%) (0.8) (5.8%)Total conversion costs 14.9 13.0 14.2 (14.9%) (0.7) (4.7%) 100.9 98.6 99.2 (2.2%) (1.6) (1.7%)

Shipping and delivery 1.9 1.9 1.9 (3.0%) (0.0) (0.0%) 12.8 12.6 13.2 (1.4%) 0.4 3.1%Total variable costs 30.9 25.4 27.5 (21.9%) (3.4) (12.4%) 201.3 180.7 189.8 (11.4%) (11.5) (6.1%)

Contribution margin 8.7$ 6.8$ 8.0$ 27.6% 0.7$ 9.2% 50.5$ 44.8$ 50.0$ 12.7% 0.5$ 1.1%% margin 21.9% 21.2% 22.4% 20.1% 19.9% 20.8%

Fixed manufacturing 2.4 2.3 2.2 (4.7%) (0.2) (8.4%) 16.4 16.4 15.5 0.0% (0.9) (6.0%)Depreciation 1.8 0.9 1.8 (102.1%) 0.0 1.6% 12.7 6.3 12.8 (101.8%) 0.0 0.3%SG&A 0.6 0.5 0.6 (10.5%) 0.0 7.0% 3.6 3.6 4.2 1.3% 0.6 13.8%Other fixed costs - - - nm - nm - - - nm - nmTotal fixed costs 4.8 3.7 4.6 (29.3%) (0.1) (2.4%) 32.7 26.4 32.4 (24.1%) (0.3) (1.0%)

Other income / (expense) 0.0 0.1 (0.1) 79.1% (0.1) (145.4%) 1.8 (0.1) 1.0 1887.3% (0.8) 76.0%

Operating income 4.0$ 3.3$ 3.2$ 21.5% 0.7$ 21.8% 19.6$ 18.4$ 18.6$ 6.5% 1.0$ 5.3%% margin 10.0% 10.1% 9.2% 7.8% 8.1% 7.7%

EBITDA 5.8$ 4.2$ 5.1$ 39.0% 0.7$ 13.3% 32.3$ 24.7$ 31.3$ 30.9% 0.9$ 3.0%% margin 14.6% 12.9% 14.4% 12.8% 10.9% 13.1%

Adjustments - - - nm - nm (0.1) - - nm (0.1) nmAdjusted EBITDA 5.8$ 4.2$ 5.1$ 39.0% 0.7$ 13.3% 32.2$ 24.7$ 31.3$ 30.6% 0.9$ 2.8%

% margin 14.6% 12.9% 14.4% 12.8% 10.9% 13.1%

Per Unit Analysis ($ per Unit)

Revenue 599 528 555 13.5% 43.6 7.8% 571 524 550 8.9% 21.1 3.8%

Total material costs 213 173 178 (23.4%) (35.3) (19.9%) 199 161 177 (23.1%) (21.2) (12.0%)

Labor (hourly wages + hourly fringes) 66 72 70 9.2% 4.2 6.0% 68 71 71 3.5% 2.5 3.5%

Energy 87 76 85 (14.7%) (1.5) (1.7%) 87 92 90 5.0% 3.0 3.4%

Contribution margin 131 112 125 17.7% 6.8 5.5% 115 104 115 9.9% (0.1) (0.1%)

Fixed costs 72 60 73 (19.3%) 0.8 1.1% 74 61 74 (21.1%) 0.1 0.2%

Adj. EBITDA 87 68 80 28.2% 7.5 9.4% 73 57 72 27.4% 1.2 1.6%

Unit of measure

* Footnote

Source: Source 20

5,094

5,831

2,038

726 18

243

328

139

(191)

(551)(2,013)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

BUDGET Price Volume Mix LargeVolume

Changes

Inf lation /Deflation

One-timeItems

AOS Procurement Capex Driven Fixed Other ACTUAL

Board prices favorable

Shipment volume $44M,

inventory change $284M

Sales mix $869M, f iber

grade mix ($639M)

Fiber unfavorable ($1,709M),

energy unfavorable

($262M)

Includes productivity

favorable 62 TPD, $447M

MRO and other

f ixed manufacturing

R&M ($223M), Elk Grove lam

volume $33M, other

converting ($206M),

f ixed ($158M)

737

Bridge July Budget to Actual

Goods 1

($ in Thousands)

Goods 1 $1.3MM of fiber inflation partially offset by favorable volume, board and energy pricing resulted in Goods 1 being ahead of budget with improved

productivity

Company Goods 1 7/07 Budget to Actual EBITDA Bridge

Unit of measure

* Footnote

Source: Source 21

31,311 32,200

978636

4541,281 5

9,075

183

(1,195)(9,449) (1079)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

YTDBUDGET

Price Volume Mix LargeVolume

Changes

Inflation /Deflation

One-timeItems

AOS Procurement CapexDriven

Fixed Other YTDACTUAL

Board prices favorable

Fiber unfavorable ($10,442M),

energy favorable $1,093M

SRC supply agreement

savings accrual

favorable, $445M

mill production

volume favorable

1,470 tons , $328M, fiber mix $782M, chemicals

$464M

SG&A

R&M ($1,805M),

freight ($76M),

other f ixed and SG&A,

$842M

+4,615 tons shipped

MRO and other

unfavorable ($843),

Coating and Chem

($381M), fiber $22M

889

Bridge YTD July Budget to Actual

Goods 1

($ in Thousands)

Despite $8.7MM of fiber inflation, Goods 1 are on budget due to price increases, volume, energy, and recognition of SC supply agreement savings

Company Goods 1 6/07 Budget to Actual YTD EBITDA Bridge

Unit of measure

* Footnote

Source: Source 22

Goods 1

Cost Savings Summary vs. Budget

YTD Goods 1 are tracking $2.1MM ahead of the budgeted cost savings target.

JAN FEB MAR APR MAY JUN JULYTD 07 Actual Actual Actual Actual Actual Actual Actual

Actual/Forecast Savings

Plant InitiativesAOS - Waste - - - - - - - - AOS - Productivity / Other 4,225.8 605.5 455.5 539.6 582.0 570.8 752.9 719.4 CAPEX 347.8 - - - - 10.3 122.2 215.4 Procurement - Plant 156.7 19.7 23.0 17.0 28.0 23.0 14.0 32.0 Fixed Costs - Plant - - - - - - - - Fixed Costs - RIF 593.2 17.4 82.8 98.8 98.2 98.2 98.2 99.6 Fixed Costs - T & E 22.4 - - - 8.0 12.0 2.8 (0.4) Compressible - - - - - - - - AOS Implementation Expenses - - - - - - - - Other Implementation Expenses - - - - - - - -

Subtotal Plant Initiatives 5,345.9 642.6 561.4 655.4 716.2 714.3 990.0 1,066.0

Procurement & Corporate InitiativesBoard / Fiber / Resin 798.4 38.3 33.9 275.7 136.8 136.9 139.5 37.3 Adhesives - - - - - - - - Chemicals 54.9 0.5 (4.7) (0.3) 5.1 19.4 15.9 18.9 Corrugated - - - - - - - - Inks / Solvents / Coatings 327.3 50.0 46.9 47.4 48.8 38.0 47.3 48.8 Other Raw Materials - - - - - - - - MRO 15.5 - - - - - - 15.5 Logistics 122.5 2.6 10.7 8.5 14.4 18.0 35.7 32.9 Fixed Costs - - - - - - - - - - - - - - -

Subtotal Corporate Initiatives 1,318.5 91.4 86.8 331.2 205.1 212.3 238.4 153.4

Grand Totals 6,664.5 734.0 648.2 986.7 921.3 926.6 1,228.4 1,219.3

Budget Savings

AOS - Waste - - - - - - - - AOS - Productivity / Other 1,340.9 117.9 119.5 182.7 206.4 206.5 206.5 301.2 CAPEX 111.8 - - - - - 55.9 55.9 Procurement - Plant - - - - - - - - Fixed Costs - Plant - - - - - - - - Fixed Costs - RIF 483.4 - 80.6 80.6 80.6 80.6 80.6 80.6 Fixed Costs - T & E - - - - - - - - Compressible - - - - - - - - Corporate Initiatives 2,597.5 288.6 288.6 288.6 416.9 416.9 416.9 481.0 Grand Totals 4,533.6 406.5 488.7 551.9 703.9 704.0 759.9 918.6

Variance to Budget

AOS - Waste - - - - - - - - AOS - Productivity / Other 2,884.9 487.6 336.0 356.9 375.6 364.3 546.4 418.1 CAPEX 236.0 - - - - 10.3 66.3 159.5 Procurement - Plant 156.7 19.7 23.0 17.0 28.0 23.0 14.0 32.0 Fixed Costs - Plant - - - - - - - - Fixed Costs - RIF 109.8 17.4 2.3 18.2 17.6 17.7 17.6 19.0 Fixed Costs - T & E 22.4 - - - 8.0 12.0 2.8 (0.4) Compressible - - - - - - - - Corporate Initiatives (1,279.0) (197.2) (201.8) 42.6 (211.8) (204.6) (178.5) (327.6) Implementation Expenses - - - - - - - - Grand Totals 2,130.9 327.5 159.4 434.8 217.4 222.6 468.5 300.7

Unit of measure

* Footnote

Source: Source 23

Inventory Turns

18.1x 18.6x21.2x

17.3x 17.5x 16.4x 15.8x17.9x 17.5x

21.1x 20.2x 20.4x22.1x 21.9x

20.2x22.4x 21.4x

18.4x 19.1x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Days Sales Outstanding

44.3 44.5 41.649.5

43.8 44.4

34.9

45.549.9 49.2

55.8 58.2

42.5 42.1 42.7 43.3 45.2 43.3 43.0

-

10.0

20.0

30.0

40.0

50.0

60.0


Days Payables Outstanding

36.5 33.7 33.5 35.9 36.4 38.0

49.6 52.2 51.146.2 43.9 41.1

33.4 34.4 35.1 38.6 39.0 37.6 41.1

-

10.0

20.0

30.0

40.0

50.0

60.0


Working Capital MetricsGoods 1

DPO data appear to be lower than the other businesses; data review underway

MDA Sample

Economy & Finance

Transcript of MDA Sample