Graphic Packaging Company (GPK) 16th Annual Wells Fargo Industrials & Materials Conference summary

Inflation and cost management

• Experiencing $65 million more inflation than planned, with some costs seen as permanent and others transitory.

• Implemented a reduction of 500 roles and ongoing procurement initiatives to optimize costs.

• Announced the sale of the Croatia facility as part of footprint optimization.

• CapEx projects are being reevaluated to ensure alignment with free cash flow goals.

• Treating inflation as permanent in cost structure redesign, while hoping for some relief.

Demand trends and portfolio diversification

• Demand remains resilient with no signs of inventory buildup, supported by broad geographic and sector diversification.

• Focused on productivity and cost reduction to restore EBITDA margins, including a $130 million inventory reduction.

• Expanding into new categories like fruit trays and perimeter store products, targeting a $15 billion addressable market for plastic-to-paper conversion.

• Globalizing successful European initiatives and aiming to fill excess capacity in recycled board production.

Sustainability and innovation

• Strong emphasis on fiber-based, biodegradable packaging, aligning with regulatory trends such as Europe's 2030 plastics ban.

• Holds 3,100 patents and proprietary products, with innovation centers in multiple locations.

• 70% of products made from recycled material, with most being recyclable.

• Engaging directly with Chief Sustainability Officers to align on carbon reduction and recyclability goals.