© 2012 Graphic Packaging International, Inc.

2012 Southern Employee Benefits Conference

Clint DemetriouVP, Total Rewards

October 2, 2012

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© 2012 Graphic Packaging International, Inc. 2

Packaging Solutions That Improve the World in Which We Live

Graphic Packaging International- Business Overview

© 2012 Graphic Packaging International, Inc.

FoodBeverage

Household and Personal

Care

Club Store

MicrowaveMultiwall

Labels

Key Products

Machinery

Specialty Plastics

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© 2012 Graphic Packaging International, Inc.

Food

Beverage

Household and Personal Care

Microwave

Labels

Graphic Packaging Cartons for Consumer Products

© 2012 Graphic Packaging International, Inc.

Centralized Managed Integrated Global Supply Chain to Our Customers

Largest U.S. producer of folding cartons

Focused on food & beverage end markets

Vertically integrated network of 55 converting facilities and 7 mills (80+% integrated)

3 virgin (CUK) mills produce approximately ~1.5 mm tons per year

5 recycled (CRB & URB) mills produce approximately ~0.9 mm tons per year

Paperboard Packaging BusinessOverview

Dry Foods29%

Frozen Foods

21%

Food Services

5%

Health & Beauty

2%

Soap/Laundry2%

Other8%

BeverageCarriers

33%

Industry End MarketsKey Facts

FiberSupply

PackagingMachinery

CartonConverting

Global Innovation &Carton Development

PaperboardProduction

Wood

OCC

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© 2012 Graphic Packaging International, Inc. 6

U.S. and Canada Central & South America Europe Pac Rim

Major Customers Major Customers Major Customers Major Customers

Our Customers Are Global Food, Beverageand Consumer Products Companies

We Grow Globally with Our Customers

© 2012 Graphic Packaging International, Inc.

Graphic Packaging at a Glance

Headquarters- Marietta, GA (Sandy Springs)

$4.2B revenue

3 Major M & A events since 1998

Manufacturing Sector

12,000 employees; some representation

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© 2012 Graphic Packaging International, Inc.

Comprehensive package of compensation and benefits.Includes retirement plans, medical plans, disability and life insurance, market competitive salary and wages

Invest over $1 billion per year in compensation and benefits for employees and their dependents

15,000 retirees currently receive or will receive retirement benefits

12,000 dependents are covered by our medical plans

Graphic Packaging at a Glance

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© 2012 Graphic Packaging International, Inc.

Benefits- Design Principles“Aggressive” on health, leave, systems/processes

1. Sustainability- for the company, for the employee

2. Productivity- bringing my best to work and to home

3. Accountability- “skin in the game”, incentive to take action

4. Engagement- supporting supervisory engagement

© 2012 Graphic Packaging International, Inc.

Graphic Packaging- Our Employees

“Who’s Your Reason?”

•  Age 48, male, married with children

• Earns $40,000

• Lives in small town America, family and community are important, takes pride in their work for GPI

• Limited Internet access at work; not likely to read GPI communications

• Dealing with one or more potentially serious health issues

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© 2012 Graphic Packaging International, Inc.

Benefit Priorities

1. Simplify Plans Too Many

2. Labor contracts “Same As Salary”

3. Administration Leverage external partnerships, LEAN process, improve systems

4. Reduce Liability Accelerate to DC (minimize the unknown), one culture, data consolidation

5. Medical Introduce HRA and incentives, actuarial/dependent pricing, spousal

surcharge, Position for Reform

6. Manage Leave Day one reporting and location metrics

7. Behavior change GPIFIT- narrow focus, tobacco-free, weight, Who’s Your Reason?, Remember audience

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© 2012 Graphic Packaging International, Inc.

Health Care Plan 2013

HRA Plan, Spousal Mandate, and Dependent Subsidy Reduction

$100

$125

$150

$175

$200

$225

$250

$275

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2009 Status Quo

2012 Status Quo

HRA Plan

HRA Plan withSpousal Mandate

HRA Plan withSpousal Mandateand DependentSubsidy Differential

  2013 Cost (Savings) 2022 Cost (Savings)Total Cost

2013 through 2022 (Savings)

2012 Status Quo

HRA Plan

HRA Plan with Spousal Mandate

HRA Plan with Spousal Mandate and Increased Dependent Cost Share

Total Net Savings

How do you bend the curve in today’s environment?

Assumes enrollment of all 9,791 enrolled employees (Union and non-Union) in the New "SAS" HRA plans

In M

illio

ns

© 2012 Graphic Packaging International, Inc.

Information—$500√ Biometric Screening√ HRQ

Action—$500√ Preventive Care Exam√ Engagement with Health Coach

and Development of Health Action Plan

√ 6-month Check-In with Health Coach

2013$1, 000 HRA

Information—$250√ Biometric Screening√ HRQ

Outcomes—$250Examples Include:√ Reduce BMI by 5%√ Reduce cholesterol by 10%√ Reduce blood pressure by 10 pts

Action—$500√ Preventive Care Exam√ Engagement with Health Coach

and Development of Health Action Plan

√ 6-month Check-In with Health Coach

2014$1, 000 HRA

2015$1, 000 HRA

Outcomes—$700Examples Include:√ Reduce BMI by 5%√ Reduce cholesterol by 10%√ Reduce blood pressure by

10 points√ Reduce blood sugar by 5%√ Stop smoking√ Reduce health risk factor by 5%

Action—$300√ Preventive Care Exam√ Engagement with Health Coach

and Development of Health Action Plan

√ 6-month Check-In with Health Coach

Information—Gating Mechanism√ Biometric Screening and HRQ

Health Improvement

Health Care Plan 2013 Know, Act, Improve

© 2012 Graphic Packaging International, Inc.

Health Care Plan 2013 Health Plus Incentive Plan

Actions and Incentives

HRQ and Biometric Screening ($500)

Preventive Care Exam ($150)

Engagement with Health Coach and Development of Health Action Plan ($150)

Six-month Progress Report with Health Coach ($200)

PPO Plus Health Reimbursement Account

Me

dic

al C

laim

Ex

pe

ns

es I

nc

urr

ed

Plan Coinsurance

Plan Deductible

Earn HRA Accumulation(First Dollar)

$1,200

$3,400

$600

$2,200

$200

$1,400

$1,000 $1,000 $1,000

90%/70%PPO

80%/60%PPO

70%/50%PPO

80%/60%PPO

90%/70%PPO

70%/50%PPO

Single Single SingleFamily Family Family

© 2012 Graphic Packaging International, Inc.

Employee

Supervisor

(May Vary)

Time Collection Devices

GPI

Local

HR

Leave Admin

Payroll

TotalAbsence Sheets

EE Request

sLeave

WorkbrainLisa Roche

ADP E-LbrM. Noland

KronosJ.L. Barnard

Superv.

CoversShift

Supervisor or HR

Asks EE to Report Leave to

Met

HR May Help/Be Notified

Employee Makes Call

Or . Submits Leave

Form

MetLifePaper or

Telephonic Intake of Leave

Old Leave Management Notification, Time System Workflow

Supervisor Confirms Time

Collection Device Updated Correctly:Daily, Weekly, or

Monthly.(Local HR

Monitors/Manages)

Call or Paper

Paper

Outsource

e 1

1

7

HR Monitoring

MetLife Claim Review and

Determination

Request for Info, Follow Up to Provider, etc.

Approval or Denial

Received

MetLinkReporting

Superv. Updated on

Leave- Cover

Shifts- Plan- Perf.

Mgmt.

Paper Claim

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© 2012 Graphic Packaging International, Inc.

Employee

Supervisor

(May Vary)

Time Collection Devices

GPI

Local

HR

Leave

Mgmt.

Partner

SAPPayroll

EE Request

sLeave

Uniform Time Management

System(Automated Input)

Superv.

CoversShift

ACTEC (Live)24 / 7 / 365

Telephonic Intake of Day 1 Absence

New Notification Workflow – Leave Management, Time Systems

Supervisor Complements Other Absence Data with Time

Collection Device (Local HR

Monitors/Manages)

HR Monitoring & Mgmt.

Leave Management Claim

Review and Determination

Request for Info, Follow Up to Provider, etc.

Approval or Denial

Received

“Day 1” Real Time E-notification

and/orEmail Bank

Leave Mgmt. (Cigna)E-notification

and/orReporting Bank

WC – Gallagher Bassett

2

3

1

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© 2012 Graphic Packaging International, Inc.

% of Leaves Managed by: June July August

Leave Partner 33% 27% 27%Location Attendance

Policy 67% 73% 73%

June 2012 July 2012 Aug 20120

500

1000

1500

2000

2500

3000

1237

989 962

2539 2619 2580

GPIWorks Referrals to Leave Partner

Yes NO

# o

f R

efer

rals

© 2012 Graphic Packaging International, Inc.

Graphic Packaging International

Thank You

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