CREA DISCO INSIG SUPPLY CHAIN INTEGRATION ITER AT IO N MAN UFA CT PER U FO RM RIN G SYS A TEM NCE S Y/ OG L S O HN TREND C TE KET RCH A E R S MA D RE AN INTE CT RA ND G R A IN ME KET SU R CON E MA TOR IN S IO N TE IN TE G ST ING R GRAP MANAGE TM PID RA YPING OT OT PR SU DE SI ST G N F AIN O AB R ILIT Y NT IO N ENGINEERING/ DESIGN MATERIAL SCIENCE PH ICS EMENT N TIO EA ID RATIO N VE GHTS CO NC EP DE SIG T N IN ATIVE OVERY S ES NT C PR O PME ELO V E D PID RA YPING OT OT PR SU DE SI ST G N F AIN O AB R ILIT Y NT IO N ENGINEERING/ DESIGN MATERIAL SCIENCE PH ICS EMENT CO NC EP DE SIG T N N TIO EA ID RATIO N consumers are diverse, we see the ability to tailor solutions that meet market and marketing demands as a distinct advantage. Re-envisioning Sonoco is an evolutionary process to transform us into a solutions company that offers packaging, rather than a packaging company that happens to offer solutions. There is a distinct difference between these two approaches and we believe the difference creates an opportunity to accelerate growth. The good news is we actually operate this way. VE GHTS IN A TRULY GLOBAL ECONOMY where companies are diversified and IN ATIVE OVERY 360° Customized Solutions™ S ES NT C PR O PME ELO V E D We approach our customers’ business starting with their challenges, then build a packaging neutral, 360° Customized Solution™ that fits their specific needs. Sometimes our solution may be packaging specific, sometimes it may involve supply chain improvements, graphics management, process development, or all of these elements combined. Our ability to provide this kind of holistic, customized solution is driven by the fact that we are able to offer the industry’s broadest range of packaging formats and services combined with our unique i6 Innovation Process™ and our deep technical expertise in design, manufacturing, testing and material science. Bringing together our unrivaled portfolio, purpose-driven innovation process and intellectual capital allows us to deliver our customers’ innovative packaging solutions that enhance their business and their brands. CREA DISCO INSIG SUPPLY CHAIN INTEGRATION ITER AT IO N MAN UFA CT PER U FO RM RIN G SYS A TEM NCE S Y/ OG L S O HN TREND C TE KET RCH A E R S MA D RE AN INTE CT RA ND G R A IN ME KET SU R CON E MA TOR IN S IO N TE IN TE G ST ING R GRAP MANAGE Financial Highlights net income attributable to sonoco net sales billions of dollars 3.60 2009 4.12 2010 millions of dollars 4.50 4.79 4.85 $5.00 201.1 3.75 2011 2012 217.5 196.0 219.1 $220 165 151.5 2.50 110 1.25 55 2013 2009 2010 2011 2012 2013 gaap earnings per share dollars 1.96 2.13 1.91 2.12 $2.20 1.65 1.50 1.10 .55 2009 2010 2011 2012 2013 Be a great company for our stakeholders through an unwavering belief that “People Build Businesses” by doing the right thing. Priorities I Maximize sustainable cash flow from operations I Grow our Consumer Packaging and Protective Solutions segments and our industrial businesses in emerging markets I Optimize the portfolio FOUNDED IN 1899, SONOCO is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $4.9 billion, the Company has more than 19,900 employees working in 335 operations in 33 countries, serving some of the world’s best known brands in some 85 nations. Capabilities I Ideation and innovation I Insights and market alignment I Quality and service excellence I Manufacturing excellence I Supply chain excellence And though our Company is made up of individuals with diverse backgrounds, operating in different countries and facing different markets, we are connected through a shared culture, vision, mission and priorities, all working toward the same goal. Financial Principle Differentiating Become the acknowledged leader in highquality, innovative, value-creating packaging solutions that “Satisfy the Customer.” Business Mission Guiding Company A Common Culture Working Toward a Common Goal Objectives I Achieve average annual doubledigit total return to shareholders I Achieve return on capital and equity in top quartile of the Standard & Poor’s 500 Index I Maintain investment-grade credit rating Connecting Insights to Innovation for 115 Years 2014 MARKS SONOCO’S 115TH BIRTHDAY and our commitment to customers, employees, shareholders and the communities where we operate has never been stronger. This milestone provides the ideal opportunity for us to reflect on our past and reinforce those beliefs and guiding principles that have brought us this far. We are looking ahead and embracing a spirit of curiosity, collaboration and innovation, as we re-envision Sonoco as a company that brings more to packaging than just the package. One of the ways that we are able to make this re-envisioning a reality is our newly developed i6 Innovation Process. This disciplined, step-by-step approach allows us to connect market and customer insights to the ultimate development of an innovative, customized solution that provides our customer with a differentiated competitive advantage. We use our i6 process as the engine for collaborative, purpose-driven innovation that meets the unique needs of our customer. Each step provides the opportunity to add-value, whether that is to actual package development, process development, in-store merchandising, or everything in-between. We test the most promising ideas, using our rapidprototyping capabilities, packaging and material science labs and pilot plant to conduct manufacturing test runs. Integration We determine how to best incorporate solutions from an operational perspective, considering things like process development, manufacturing, designing for sustainability and graphics management. Interaction We examine ways to maximize market impact, including testing in a retail environment, evaluating in-store marketing programs or conducting eye-tracking studies to determine graphics and design appeal. Step Six: Invention Step Five: Using these consumer behavior insights, we invite packaging engineers, marketing gurus and designers to participate in cross-discipline brainstorming, developing a suite of ideas and approaches to evaluate. Step Four: Ideation Step Three: Insights We gather market and consumer insights using research tools like focus groups, online panels and in-home studies. Step Two: Step One: The i6 Innovation Process™ Iter In th evalu prom pack man as su integ manu perfo syste recyc Sonoco at a Glance Consumer Packaging Products and Services: Round composite cans, shaped rigid paperboard containers, fiber caulk/adhesive tubes; aluminum, steel and peelable membrane easyopen closures for composite and metal cans; plastic bottles, jars, jugs, cups and trays; printed flexible packaging, rotogravure cylinder engraving; global brand management Markets: Snacks, nuts, cookies, crackers, hard-baked goods, desserts, candy, gum, frozen concentrate, powdered and liquid beverages, non-carbonated beverages, ready-to-drink products, powdered infant formula, coffee, refrigerated dough, frozen entrees, processed food, vegetables, fruit, seafood, poultry, soup, pasta, dairy, sauces, dips, fresh-cut produce, pet food, home and personal care, adhesives Display and Packaging Products and Services: Point-of-purchase displays, retail security, custom packaging; fulfillment, primary package filling, supply chain management; paperboard specialties Markets: Automotive, beverages, candy, electronics, personal care, baby care, food, cosmetics, fragrances, hosiery, office supplies, toys, home and garden, medical, over-thecounter drugs, sporting goods, hospitality industry, advertising Paper and Industrial Converted Products and Services: Recycled paperboard, chip board, tubeboard, light-weight corestock, boxboard, linerboard, corrugating medium, specialty grades; paperboard tubes and cores, molded plugs, reels; collection, processing and recycling of old corrugated containers, paper, plastics, metal, glass and other recyclable materials Markets: Converted paperboard products, spiral winders, beverage insulators, construction, film, flowable products, metal, paper mills, shipping and storage, tape and label, textiles, wire and cable, municipal, residential, customers’ manufacturing and distribution facilities ration he last step, we uate product, motion and kage perfornce, as well upply chain gration, nufacturing ormance ems and cling. Protective Solutions Products and Services: Highly engineered, custom-designed protective, and temperature-assurance packaging solutions Markets: Consumer electronics, automotive, appliances, medical devices, temperature-sensitive pharmaceuticals and food, heating and air conditioning, office furnishings, fitness equipment, promotional and palletized distribution SONOCO IS COMMITTED TO communities where it operates and is focused on operating in a responsible and ethical manner. We are a proud member of the 2013/2014 Dow Jones Sustainability World Index and have been named as one of the most trusted, admired and responsible corporations in the world. Silver Class 2014 1 North Second Street I Hartsville, SC 29550 I 843 383 7000 I sonoco.com