Good morning. Welcome everybody. My name is Robert Quartaro. I'm Senior Vice President of Investor Relations for WestRock. Thank you for joining us for our 2022 Investor Day. We're excited to have you with us, and we look forward to sharing our plans and strategy with you throughout the morning. Earlier this morning, we posted our Investor Day presentation on the investor relations section of our website. This can be accessed at ir.westrock.com, or via a link on the app that you're using to watch this presentation. During today's presentation, we'll be making forward-looking statements involving our plans, expectations, estimates, and beliefs related to future events. These statements may involve a number of risks or uncertainties that could cause actual results to differ materially from those we discuss during the presentation. We describe these risks and uncertainties in our filings with the SEC, including our 10-K for the fiscal year ended September 30th, 2021. We will also be referencing non-GAAP financial measures during today's presentation. We have provided reconciliations to these non-GAAP measures to the most directly comparable GAAP measures in the appendix of the slide presentation. As mentioned previously, the slide presentation is available on our website. First, a note on room safety before we get started. In the event of an emergency, the St. Regis Fire and Safety director or manager on duty will make an emergency evacuation announcement via the public address system. In this event, please exit through the room on the opposite side of this floor, past the registration desk. With that, let's get started. Today you will hear from several members of our management team, including David Sewell, our Chief Executive Officer, Nickie Parker, our Senior Vice President of Merchandising, Displays, and Graphic Solutions, presenting on behalf of Pete Durette, our President of Corrugated Packaging, Patrick Kivits, our President of Consumer Packaging, John O'Neal, our President of Global Paper, Tom Stigers, our President of Mill Operations, Peter Anderson, our Chief Supply Chain Officer, Margaret Herndon, our Chief Marketing Officer, and Alex Pease, our Chief Financial Officer. Now I'd like to introduce WestRock's Chief Executive Officer, David Sewell. Well, good morning. It is great to see everybody in person. It's wonderful that you're all here. Well, I really wanna thank you for taking time out of your schedule. You know, it's really a privilege for me to represent the 50,000 men and women of WestRock, because there's such an amazing team that has been so resilient over the last several years through many challenges. For me, I've now been here a little over a year, and what attracted me to WestRock was the unbelievable untapped potential of this company. You know, we came together through multiple acquisitions, so integrating companies, extracting value, driving operational excellence, driving commercial excellence, this is the stuff that I love to do. It's really a privilege for me to be here. This Investor Day is really important for us because over the last year, the team has been working incredibly hard in the transformation of this company, and I'm so proud of the work they've done, and I'm excited for you to hear some of the accomplishments that we've had over the past year. But more importantly, we are really excited to share with you the future of WestRock, something we're calling WestRock 2.0. This is a different company. We are focused on so many different things strategically to execute our plan. I couldn't be more excited to have this team share with you their goals, their visions, and the strategic initiatives that we have in place. If you're like me, you probably skipped to the last page of the investor deck that we have. We are committed to our financial goals in 2025. We are committed to greater than EBITDA of $4 billion. We are committed to greater than margins of 19%. We are committed to greater than free cash flow of $5.50 per share. These are just some of the goals that we are committed to despite the economic environment that we're in. Forget about the geopolitical challenges that we have. Forget about the inflationary pressures we're on. We are committed to these financial goals as a company. We are committed to greater than 10% return on invested capital. We are going to extract value out of these wonderful acquisitions that we've made, and you're gonna hear a lot about that today. We want you to know that we are absolutely committed to these financial goals. We've been very conservative in our assumptions as far as it relates to inflationary pressure. We are also including projected portfolio moves that we expect to make over the next couple years into these financial commitments, and we want you to know this is a different company that's going to deliver on our results. With that, let's get started. I wanna start with our purpose. You know, innovate boldly and package sustainably. Our WestRock team is aligned to this purpose across the company. To accomplish all that we want as a company, we must be innovative. We must be bold, and we must partner with our customers to package sustainably, helping to create a more sustainable future for everyone. Our vision is to be the world's best paper and packaging company. This is driven by our core values, integrity, respect, accountability, and excellence. Innovate boldly, package sustainably, and I'm excited to get started on our day this morning. As I mentioned, I really wanna take a moment to thank the WestRock team members across the company. We have had challenges over the past few years, and this team has proven their resilience and their dedication time and time again. I am incredibly proud of everyone at this company and what we've been able to accomplish this far. I truly believe this team is the core competitive advantage. It's our secret sauce, and we are the differentiator for the company. Today, you are gonna hear from a number of our key leaders. You have a short summary on their backgrounds of their professional experience in your packets today. We also have several WestRock leadership team members in the audience, in addition to the group who will be taking the stage. You'll also have a chance to meet all of them during our lunch break this afternoon. We have the right team in place to execute our goals, and I think you're really going to enjoy hearing from them this morning. Let me just give you a brief overview of WestRock from fiscal year 2021. We are a company with $18.7 billion in sales. 44% of those sales are in our corrugated business, packaging business. 23% in our consumer packaging business, 26% in our global paper business, and the rest is in our distribution business. We have a business that serves many diverse end markets with products that are critical to our customers. As you're gonna hear today, our broad portfolio provides us with tremendous flexibility. That's a word you're gonna hear a lot about, flexibility. It enables us to deliver very unique solutions to meet our customers' needs. We're a young company. WestRock is soon to be seven years old. In that time, we have grown through important acquisitions. We've grown through organic investment while generating substantial free cash flow. Today, we're going to discuss where we've been, but more importantly, we really wanna share with you where we're going, a clear view on what we're calling WestRock 2.0. We have five focus areas for overall improvement, strategic focus, financial focus, people and culture, operating system, and capital allocation. The company was built on several strengths. We have the broadest portfolio that enables WestRock to uniquely serve our customers. Our ability to capitalize on a growing focus around sustainable packaging. Flexibility in how we serve our customers through a variety of capabilities, and an expansive footprint with highly localized sales teams. Achieving our goals through a resilient and talented workforce, and we have delivered six years of greater than $1 billion of free cash flow. Yet there is room for improvement to create WestRock 2.0. Portfolio optimization and integration. An increased focus on leveraging the scale and capabilities of WestRock to generate ROIC above the cost of capital. Driving margin enhancement by focusing on growth in the most attractive markets. Generating better return on our assets by focusing on operational efficiencies and again, that word flexibility. Fully integrating and aligning our systems and assets to drive maximum flexibility and efficiency. Managing capital to invest in our business and create value for our shareholders. As we do so, we will still consider tuck-in M&A acquisitions. We've made a lot of progress in the past year. We've made key management hires that I'm truly excited about and confident in as we continue to strengthen this leadership team. We've consolidated our MPS business into our consumer business. We've developed a broad transformation agenda and completed a portfolio review. We've taken a deliberate approach to capital allocation. We've lowered our leverage. We've increased our dividend 25%, and we've bought back $700 million of shares of stock. We've restructured our operational segments for better efficiencies and to enable greater transparency. We've mobilized a comprehensive transformation agenda to drive a step change in our profitability. We've commenced plans to optimize our supply chain for significant value, and we've announced our first portfolio action. We've also obtained board approval for an additional stock repurchase of 25 million shares. Last week, we increased our fiscal year 2022 guidance after a strong quarter. We've done a great deal, and this success has given us confidence in being able to drive our success for the future. There clearly remains ample opportunity for growth and value creation as we move forward. Today, you're gonna learn a lot more about our strategy to achieve our long-term value creation. Each of our presenters will highlight how their business or area is contributing to the achievement of these goals. They include leveraging the power of One WestRock to deliver unrivaled solutions to our customers, focusing our efforts on attractive markets where our diverse portfolio is valued and rewarded. We're gonna innovate with a focus on sustainability and growth, driving our innovation efforts in material science, in packaging design, in packaging machinery, in digital solutions to help our customers achieve their sustainability goals as we grow as a company. We are going to have a relentless focus on margin improvement and increasing our efficiency, our effectiveness, and the efficiency of our assets and our systems. We're gonna talk about our WestRock operating system and how it is helping us align this work as we move forward. Finally, we are going to execute on disciplined capital allocation, continuing our balanced approach to capital allocation with our strategic investments to improve our operations, fund tuck-in M&A as appropriate, along with returning value to our shareholders through a sustainable and growing dividend and opportunistic share repurchases. What I'd like to do is walk you through the core components of our WestRock operating system. You know, by uniting the company with common systems and ways of operating, we expect to drive significantly greater efficiencies and effectiveness across our company. The first element is enterprise optimization, which really means the unification of the way we run this company. As a company that's been made up of acquisitions, we have substantial opportunities to drive common approaches and further integrate our business planning across our company, and there are key actions that will drive a greater level of productivity and efficiency. Next is operational effectiveness, which involves standardizing our metrics so we have better data to make decisions and common management systems across our company to enable us to make these decisions quickly. We can only be effective if we are safe, and our new safety approach across the company is an integral part of our operational effectiveness as well. Customer focus is everything we do. It allows us to provide value to our customers with a relentless focus on service and quality as we work together to solve our customers' most critical challenges. Commercial excellence is absolutely crucial as we unify our pricing and value-selling methodology and develop and train the world's best sales organization. You're gonna be hearing a lot more about the value of the WestRock operating system and how we're implementing it throughout today's presentations. Linking strategy in the WestRock operating system is going to enable us to deliver on the financial goals I mentioned. Again, these key strategic focus areas, leveraging the power of One WestRock to deliver unrivaled solutions to our customers, innovating with a focus on sustainability and growth, a relentless focus on margin improvement and increasing efficiency, and executing on our disciplined capital allocation. Together with that and utilizing our WestRock operating system, this is going to help us achieve our 2025 financial goals. Again, EBITDA greater than $4 billion, EBITDA margins greater than 19%, greater than 10% return on invested capital, and free cash flow per share greater than $5.50. Again, these are conservative assumptions with inflation, and they include the impact of anticipated portfolio moves. With our winning team and our culture, our path to achieving these goals is crystal clear. Let me talk for a minute about leveraging the power of One WestRock. WestRock's broad portfolio is truly unique in the industry. What that does is enables us to help our customers in ways that no other company can. It's often the combination of these products and services that provide value to our customers as they face today's industry megatrends. This is how we see these megatrends, sustainability and consumers' demand for more sustainable packaging. Changing consumer and customer preferences with needs for more flexibility in their supply chains and the ability to ship product and packaging to meet current demand. E-commerce and the demands from consumers for safe shipment of product quickly and efficiently. Digitization and automation. When customers want their packaging to do more, to help market their product through engaging package enhancements, to tracking and automation systems that help locate their products and move products through their supply chain. Retail margin compression. Our customers are facing this challenge in addressing how packaging can do more to help control costs. Labor shortages and supply chain disruptions. We've heard about this for years. Now, our packaging and our automation solutions can help drive efficiencies and help address these challenges. We're also seeing a tremendous increase in onshoring to combat global supply chain issues. You know, according to Thomasnet, in their most recent survey of 709 manufacturers, as many as 83% of respondents said they are likely or extremely likely to reshore their product and operations and are planning to add U.S. suppliers to their supply chain. Just to give you an idea, the ongoing reshoring trend is reflected in $204 billion in RFQ sourcing requests just over the last 12 months. Compare that to just $69 billion in 2018. WestRock's broad set of fiber-based substrates, our large network of converting and distribution facilities, and our unmatched automation platform provide a diverse offering that positions us to be a market leader. We have the ability to optimize across our primary, secondary, and tertiary packaging opportunities with automation and provide full solutions to help our customers meet their goals. Our broad geographic footprint and asset combination enables our ability to provide superior service to our customers, and our ability to shift production and sales channels to best capture value across market is incredibly beneficial. The power of combination of our corrugated and consumer packaging business, along with our growth opportunities in sustainable packaging, including plastic replacement, presents a $370 billion opportunity for the company. Our ability to cross-sell, combining our broad portfolio into complete packaging solutions, presents billions in potential opportunity for our company. Our packaging business is supported by our strategic global paper franchise, again, providing flexibility to ship paper sales as needed to drive the greatest value overall. You're gonna be hearing a lot more about that this morning. WestRock's capabilities position us well to capitalize on a growing need of enhancements in packaging from brand enhancements to digital solutions. Now, I just wanna talk about innovation and sustainability for a minute because these are true growth drivers for our company. Our market-leading customer solutions are driven by the capabilities stemming from our focus on innovation, which we have aligned under four platforms. Material science, enhancing the performance of fiber-based packaging, most often with barrier coatings that help eliminate the need for plastics. With packaging design, continually improving the design of packaging so that it does more for our customers and consumers from lightweighting to brand visibility. Packaging machinery, improving supply chains for our customers and often help combat shortages with technology solutions. Finally, digital. Driving additional value through helping packaging do more. Digital enablement, which we call Connected Packaging, provides additional supply chain monitoring, brand building, and much more, and we are leaning in hard on this capability. Through innovation, we help solve the complex sustainability problems of our customers and of our customers' customers, which helps build stickier relationships. Our value-added innovative products offer higher margins overall for the company. You know, WestRock has a strong track record of launching innovative packaging solutions into the market, and you can see a few of them right here on this slide. One of my favorites is this pizza box innovation that keeps pizza hotter. We also have our EnShield that provides grease resistance without a plastic coating. Many of these items that are launching now or in the very near-term future are featured on the displays throughout the rooms here today, and I encourage you to take a moment and view these differentiated solutions for our customers. In particular, the EcoPush provides great replacement for plastic tubes, and InsulShield provides a recyclable solution for cold chain e-commerce shipping. Our blister pack replacement keeps plastic out of the landfill with a fully recyclable alternative. Looking ahead, we will fully leverage our material science, our design, our automation, and our digital capabilities across our broad portfolio, further enhancing our ability to provide complete sustainable packaging solutions for our customers while also profitably growing the company. I'm pleased to announce that today, we published our 2021 sustainability report. In this report, we highlight our sustainability efforts and detail our goals in three categories: people and communities, bettering the planet, and innovating for our customers and their customers. You'll see a summary of our goals right here on this slide, and Margaret Herndon is gonna review these in a little bit more detail later this morning. I'm also pleased to announce that we have received validation of our greenhouse gas emissions goal from the Science Based Targets initiative. This is a very important step for WestRock and our customers in our carbon reduction efforts. Next, I just wanna talk a little bit about our approach to just being absolutely relentless in our margin improvement and increasing our efficiency. We have multiple opportunities to improve our margins, and you're gonna hear about these in specific detail throughout the morning. It starts with our WestRock operating system, where we are realizing system-wide improvements through the use of common processes and standardized metrics. We look forward to future improvements as we fully implement this work. We have detailed plans across our converting network, our mill network, supply chain, and G&A functions that will deliver 200-300 basis points in margin improvement just from these efforts. We also have efforts underway to optimize our full network for planning and logistics, warehousing and inventory, and to reduce costs and improve our productivity. We are seeking to modernize our asset base, upgrading and adding additional equipment that will improve our operations. We are also relentlessly focused on improving our productivity, which also includes reductions in our SG&A as we move forward with this plan. We are building a WestRock 2.0, and I am excited about all this transformation can do for the company and turn us into the very best paper and packaging company. Next, I just wanna briefly talk about executing our disciplined capital allocation and our approach. We remain absolutely committed to be deliberate in our capital allocation process, driven by our laser focus on improving our return on invested capital. Our balance sheet and free cash flow generation offers us financial flexibility to achieve what we believe are our core principles, investing in our world-class assets to increase productivity through maintenance capital and strategic investments. Maintaining our leverage within our new target range of 1.75 x to 2.25x, underscoring our commitment to our investment-grade profile. Returning capital to our shareholders, whether through a sustainable and growing dividend or opportunistic share repurchases. We have strict criteria for M&A that is supportive of the long-term strategy of the business. In summary, I just wanna hit on a couple of key topics before I introduce the rest of the speakers. Executing on our strategy with a focus on One WestRock, on innovation and sustainability, on margin enhancement and efficiency and discipline capital allocation, will drive our growth and our margin expansion. We've outlined our expectations for improvement in each of these areas, and this slide shows just a few of them in each of the categories in the anticipated basis points that we have targeted. You will hear more about all of these in greater details throughout the day. All of these actions contribute to our progress towards margins greater than 19%. To reiterate our strategy, we're focusing our efforts on attractive markets where our diverse portfolio is valued and rewarded. We are going to drive innovation efforts in material science, in packaging design, in packaging machinery, and digital solutions to help our customers achieve their sustainability goals as we grow our company. We are maximizing our own operational effectiveness and efficiencies of our assets and our systems, and we are continuing our balanced, disciplined approach to capital allocation. Our long-term strategy is guided by these four strategic principles that will lead to significant operational improvements and margin enhancements while further supporting our customer service execution, our growth, and driving our sustainability goals. We will get there by implementing our WestRock operating systems with a core focus on our customers, on our operations, delivering only excellence to our internal and external stakeholders, and optimizing the entire WestRock enterprise. The team here today will walk you through our plans, and I look forward to your questions and your engagement. It is truly an exciting time here at WestRock, and WestRock 2.0 is upon us, and I really appreciate your time in being here today. With that, because we are so flexible, we do have Nickie Parker, who is Senior Vice President of our Merchandising and Display business, filling in for Pete Durette, who is out with COVID, so that next person up mentality at WestRock. We couldn't be more excited to have a wonderful leader present the corrugated business. Nickie Parker. Great. Good morning, everyone. For those of you that I don't know, my name is Nickie Parker, and I'm the Senior Vice President of our Merchandising Displays and Graphic Solutions business at WestRock. Merchandising Displays and Graphic Solutions is an important part of Pete's team and of the corrugated packaging business. I'm really excited to talk to you today about WestRock's corrugated packaging business. We have a great platform and a really strong team with tremendous opportunity to drive profitable growth and margin enhancement going forward. Our future performance will be driven by the themes that David talked about this morning. We will drive profitable growth and mix enhancement by leveraging the broad footprint and powerful platform we have built to deliver on our differentiated solutions for our customers against their most important needs. Through relentless focus on our operating efficiency and deployment of the WestRock operating system and through continued strategic investment in our business, we will drive ongoing performance in productivity, in our operating margins, and in our return on capital. In 2021, our corrugated business generated $8.4 billion in sales at 17% EBITDA margins through 139 facilities and 16,000 tremendously talented teammates. WestRock is a leader in each of the markets where we participate with the number one or number two position in each of the geographies in which we operate, including our highly profitable and differentiated business in Brazil, where we're seeing the benefits of the significant investments in both our mill and our box plant system, and also through our joint venture with the Grupo Gondi in Mexico. Across these geographies, we serve a diverse set of attractive end markets, including more stable markets like food, beverage, and agriculture, and high-growth segments like e-commerce and food service. This diverse set of end markets provides both stability and growth. We have broad geographic reach in each of the countries in which we participate, with generally well-invested assets and extensive capabilities, which allows us to serve a diverse set of customers with timely service and quality, from high-volume national accounts to smaller service-intensive local customers through our sheet plants and through WestRock's Victory Packaging Distribution business. Let's talk about distribution for a moment. WestRock's distribution is highly complementary to our corrugated packaging business. With 69 distribution centers across North America, we're able to architect and deliver differentiated packaging solutions to customers that require different levels of service than typical truckload quantities from our box plants. Distribution buys over 200,000 tons of corrugated containers from our corrugated packaging business, a number which has grown substantially since our acquisition of KapStone. Provides high integrated value to WestRock. Beyond distribution, we have one of the broadest ranges of solutions within the corrugated packaging universe. We leverage a full range of virgin and recycled substrates, including a leading position with white top liner, as well as over 300 designers and project managers that design and deliver differentiated solutions to our customers. They're engineered specifically for the end-use requirements of their business and their industry. Indeed, we have over 500 patented solutions. Moreover, we have leading capabilities in terms of graphics, and let's be honest, this might just be my favorite part of the business. We have capabilities ranging from high-quality flexographic printing, including some of the best preprint assets in the industry, to litho-laminated and digital printing. These allow our customers to really differentiate their products, whether in-aisle, through our leading merchandising displays, on shelf, or to each of our doorsteps. More importantly, these solutions have higher margins than our standard brown box business, which is why we continue to invest in growing our capabilities and capacity in this part of the business. One of the things that most differentiates us from our competitors is the fact that we design and manufacture our own packaging machinery. These machines are designed to address specific challenges our customers have in key markets like agriculture, food, beverage, protein, and e-commerce. Whenever we use machinery, we unlock significant benefits for our customers. The boxes tend to be lighter, more efficient, and more sustainable. We generally reduce our customers' labor costs, waste, and improve their productivity significantly. We have over 3,500 machines in the market and have at least one machine placement in customers that represent almost 38% of our revenue. When delivering differentiated solutions to our customers through proprietary design, through our machinery or graphics, we generate about 30% higher profit per ton than our standard solutions. A big part of our future margin enhancement journey will continue to shift our mix towards these higher margin solutions, as well as more attractive parts of our customer base, which holds similar differential margins. As we talk to our customers, we hear over and over the same challenges and opportunities. They ask, "How do we make our packaging more sustainable? How do we create e-commerce packaging that's fit for the demands of that channel? How do we deal with labor challenges and offset cost of inflation all of us are seeing?" WestRock is able to combine our full range of substrates, our design capability, the work we do around material science and digital innovation for customers like Mars, Dole, SC Johnson, Smithfield, and Domino's, just to name a few. A great example of this, and brings it all to life, is Bellisio Foods. Over the last five years, we've worked with Bellisio on a number of projects to fully automate many of their packaging lines, placing over $25 million worth of machinery that helped reduce their labor by over 150 full-time equivalents and resulted in more efficient and sustainable packaging design. Our solutions have also enabled differentiation and growth with retail-ready cases that improve store labor efficiencies and shopability. Most recently, we're working on carton designs leveraging One WestRock that will improve sustainability and cost for them and be integrated from a machinery standpoint with their corrugated solutions. We have grown our business significantly with Bellisio and have a great relationship that now crosses the enterprise. This is just one of many examples of the way we're leveraging our broad set of capabilities to generate significant value for our customers and for WestRock. One of the most exciting and high-growth parts of our business is e-commerce. The e-commerce channel has grown at double-digit rates for well over a decade and spiked at almost 40% during the pandemic. While growth has normalized, it is forecasted to continue at double-digit rates through 2025. Over half of all retail growth will be in e-commerce. E-commerce has created all sorts of new opportunities for us to address for our customers as they look to optimize packaging and the supply chain to improve the consumer experience. They wanna reduce labor, freight, and supply chain costs and improve sustainability. At WestRock, we performance match the machinery with the packaging material. These optimized solutions provide key benefits that enable our customers to meet the growing demands of their business. Those benefits include improved throughput, reduced labor, product damage, and waste, improved fiber utilization, reduced DIM weight and freight costs, improved branding and unboxing experience, and improved sustainability. Our automation portfolio is substantial, but the unique demands of the e-commerce channel require a unique set of solutions. Let's take a look at some of these solutions in this video. BoxSizer. Let's start with Box On Demand then. This system uses fanfold material to cut the box down to size. Pak on Demand has a single operator, and it replaces the bubble mailer. It takes packages of all sizes, and it cuts, seals, and folds the package. Our MetaE system uses self-adhesive liner with the box to block and brace the material inside, getting rid of void fill. I wanna introduce Opera. This will be installed in July of this year, a self-contained and fully automated right-sizing package system. This product then cuts and forms the box around that product, and it's a turnkey solution which allows our customers to improve output efficiencies with minimal labor and materials. This tailored S-portfolio of e-commerce solutions is unique to WestRock. With it, we can provide customers a scalable and integrated automation strategy that enables them to meet the complex challenges they face. Nobody else offers what WestRock can in this space. While what we do for customers is critical, we also have a relentless drive to improve productivity of our business, leveraging the WestRock operating system. The WestRock operating system builds on the disciplined approach we have to running our box plants over the last few years, and then it takes it to the next level. We have common metrics with aggressive goals for improvement across the business in key areas like waste, OEE, and labor productivity. We have teams of experts that are working across our plants to put in place common processes to drive towards more consistency in achieving the highest level of performance. We're also making significant investment improvement in our manufacturing footprint to accelerate productivity. Our most efficient assets are step change more productive than our older assets, and we've seen significant benefits from the investments we've made historically. We're going to accelerate the reinvestment of our business with more high-yield equipment like EVOs, and complement that with the use of more automation and digital tools to enable higher levels of productivity, reliability, and performance of our equipment. As part of this plan, we're investing in some brand-new assets in key geographies where we see opportunities to grow our integrated business in a highly attractive way. Our new plant in Longview, Washington is a great example. It'll be a state-of-the-art facility located next to the mill in a geography where we're sold out, and there'll be opportunities for significant margin enhancement through the more productive assets in the facility. We're investing in Lithia Springs, Georgia in a new large format digital pre-print press. That'll allow us to both continue to grow our graphics business while increasing efficiency for shorter order quantities and provide new capabilities for our customers. Finally, commercial excellence will be a critical part of our future journey and margin improvement story. As we increase our share of more differentiated business like machinery, graphics, and innovation solutions with higher margins, we will push hard to manage the mix and tail of our business through more value pricing programs, including detailed segmentation of our customer base to focus on the most attractive segments and customer types. The work we're doing to implement the WestRock operating system and make high return strategic investments in our business builds off the substantial progress already made. Through the work we've done to streamline our footprint, modernize our equipment through investments in EVO, high-yield die cutters, and corrugator modernization, and the implementation of disciplined approaches to manage our box plants, we have achieved advantage performance on many key operating metrics compared to the industry. On this slide, you can see that compared to more than 300 plants in the FBA survey, our plants have almost 10% lower waste, 9% higher corrugator speeds, and over 20% in overall labor productivity advantage. We are confident that the work we're doing with the WestRock operating system and further strategic investment in the business will drive even further improvement in these metrics. We have many plants that achieve substantially lower waste than this average, and if we can get the entire average down just 1%, that's worth $50 million in annual productivity. In conclusion, we have made strong progress in building a leading platform with a great footprint, differentiated value propositions, and a fantastic team. We are highly impatient in the overall margin rates that we're achieving in the business. We have a robust game plan in place to drive profitable growth and margin improvement in the business going forward. More holistically, I think we have the best platform to differentiate with our customers and solve their most pressing needs with high-margin, innovative solutions. Thank you for your time this morning. Now I'd like to introduce Patrick Kivits, our President of Consumer Packaging. Good morning, everyone. My name is Patrick Kivits, and I have the privilege to lead a very highly talented team in our consumer packaging business. I'm really excited to talk to you about our journey in consumer packaging. We're on a really great path. Our consumer packaging business was built through many acquisitions over the past two decades, and each of the acquisitions brought their own strengths and were critical to the growth and scale of our portfolio. However, companies in acquisition mode often tend to look forward to the next bolt-on, spending less time on consolidation and best practice sharing. This results in a large network of individual plants that operate in silos. WestRock fit that pattern as well, but it created a significant opportunity for us going forward. Last week during the earnings release, you heard David and Alex speak about unlocking the true potential of our transformative acquisitions. I'm happy to confirm that this is a core element of our strategy in our consumer packaging business as well. We have a unique opportunity to leverage our scale and individual strengths by better integrating our portfolio and to create a consolidated consumer packaging organization under the One WestRock umbrella. Executing this strategy will deliver significant efficiency gains and drive profitability improvements across the consumer packaging portfolio. By leveraging our best practices in innovation, machinery, and product design, we will continue to grow with the market-leading innovative products with a focus on sustainability and single-use plastic replacements. I'll give you a lot of examples of this later. Finally, now we operate as one consumer packaging network. This allows us for a more disciplined execution of capital investments tailored to industries that we have identified as growth markets. In addition, we will optimize our current footprint to further improve our critical mass and our productivity across all of our sites. In this slide, I will just give you an overview of our business profile. Our consumer packaging business is about 2/3 in North America, 1/4 in Europe, and a remainder is in Asia-Pacific and Latin America. If you look at it from an end market point of view, the largest market that we serve are food and beverage, and beverage includes the premium wines and spirits segments. Our third largest market segment is healthcare and medical. Finally, we have a very strong position in the beauty and personal care markets as well. Then when you look at our product offering, it varies from high volume to high-end folding cartons for these markets. We have labels, inserts, leaflets, and this is a unique degree of end market diversification when you compare us with our peers. With this, we are well-positioned to serve both global customers and end markets. We offer globally consistent quality and color management, the strength that our multinational customers greatly value. We have attractive opportunities to drive profitable growth across our core geographies and end markets, and we will continue to look to streamline our portfolio to reduce exposure to less attractive markets and product categories going forward. Now let's just segue into our markets and how we win. We play in many different markets, and each of them have the unique set of needs and requirements. With our global footprint and broad product portfolio, we do have the ability to target the most attractive markets from either a profitability or a growth potential point of view, and we specialize around the specific needs. Let's just start with the beverage industry. This is an attractive growing market, and the growth is for a large part driven by plastic replacement. One of the main examples I'll show you later is like plastic rings and film wrap replacement. We do have a specialized customer-facing team, and we combine a unique, flexible, and customizable equipment offering with our design and innovation capabilities. This helps our customers to solve their problems with proven solutions that prevent them from reinventing the wheel. The positive feedback we are getting from our customers is real evidence of that. They tell us that the solutions enable them to monetize on takeout plastic opportunities in a fast, reliable, and effective way, while at the same time optimizing for local needs and without slowing down their processes. Our market-leading solutions minimizes change over time, allowing for a high degree of flexibility and customization that some of these market segments need. Let's move over to the beauty and personal care industry. Consistency of quality and high-end graphics is of the utmost importance. This to ensure that the products appear 100% the same, no matter which continent you buy them on. With our global position in these markets, we can deliver on the promise and are recognized as a partner of choice. Our food, healthcare, and pharmaceutical markets have the same elements. Our flexibility and our ability to pivot fast and leverage our scale has been instrumental during the pandemic. A lot of the requirements of our customers were changing, market volumes were changing, and we were able to pivot so fast to actually help them serve the needs of their end consumer. We are developing solutions that are relevant for each of these end markets, leveraging both the breadth of our expertise and specific insight into the needs of customers in each segment. This creates attractive opportunities for growth across all of our core markets. In summary, our global reach and local execution make a meaningful difference. Although each end market has its own unique individual needs, the challenges for our customers can be very similar in nature sometimes. Most of our customers are working to find solutions to replace single-use plastics in the packaging industry. With our centralized approach to design, innovation, and machinery, we can help our customers implement takeout plastics initiatives to help them deliver on their sustainability targets. In the previous presentation, you heard Nickie speak about the mega trends, right? I will be focusing on three different trends where we're providing innovative solutions for our customers. The first one would be sustainability, the second, changing consumer and customer preferences, and the third is digitization, also a very important part of our strategy. Starting with sustainability. We are addressing sustainability through plastic ring replacement with CanCollar and Fortuna machinery. More about that later. We have some recent wins with Molson Coors and AB InBev that have been published together. These solutions combine our paperboard with innovative packaging designs and a high-speed, highly flexible machinery. In healthcare and nutraceutical markets, we are adapting fast to changing consumer and customer preferences. Herbalife, for example, we developed unique product coding, UV labels, and cartons to advance consumer engagement to the brand and allow for track and trace to enable an efficient and secure supply chain for the company. We have many more of those great examples. We are partnering for brand security of automotive part packaging through specialty print techniques for General Motors original equipment manufacturing parts through their supply chain. Our solutions help to protect customers from counterfeiting activities and ensure that consumers are getting the OEM parts approved and genuine parts. Now let's move over to the plastic rings. This is a great example how WestRock and consumer packaging are at the forefront of sustainable innovation in packaging. This is one of the most important issues for our customers, and with very, very good reason. Plastic packaging is one of the most visible sustainability challenges that our customers have to deal with these days. We are extremely well-positioned to help them address those challenges and to get out of the plastic packaging altogether. Our CanCollar solution is a great example, first, because of the impact it's having for our customers, and second, how it leveraged a truly One WestRock approach that we've been developing over the last couple of years. Our market leading CarrierKote paperboard provides the strength and the recyclability needed to replace plastic rings. Our innovation and design teams created our CanCollar solution to provide functionality the consumer requires, with additional benefits like branding opportunities. Our machinery platform then allows our customers to run these solutions at very high speeds and customize the type of packaging they want to use. When you have some time during the break, go at the back of the room and you'll find a CanCollar example. This is one of the examples. Don't be fooled by the simplicity perception of this product, and I'll tell you why. Some of our customers run it at 2,000 cans per minute, 2,000 cans, and they require 20% additional speed to deal with some fluctuations in their process. You can have somewhere between 300-400 six-packs. Remember, all of the logos of the customer's cans need to face outward, so it's really nicely positioned. We do that at speeds of 300-400 per minute, and all of them need to sit in this little device properly. It's a patented device. It's a really good example of how we bring our design capabilities to the market and help our customers solve their sustainability challenges. Please check it out at the end of the room later. In balance, this will help our customers replace over 2,000 tons of plastics. This is just such a great win for WestRock and a great win for our customers. Now let's just move on to the core of our strategy within consumer packaging. It's focused on three main areas. First, we are centered around customers in the specific end markets, and we are specialized where it really matters to help them solve the specific challenges. Second, we will continue to drive productivity by unlocking the inherent value of historic transformative acquisitions in the spirit of One WestRock. Lastly, we will leverage our most important asset, our people, who truly make the difference in this business. Now let me give you some examples to illustrate our strategy. Since June of 2021, so almost a year ago, we have been operating all of consumer packaging businesses as one combined business with a clear differentiation from an end market segment point of view and a streamlined backbone of converting plants specialized around product categories. This enables us to drive better efficiencies, remove redundancy and duplication, and at the same time, leverage best practices across all of our sites. As a result, we are just much leaner and more effective and more focused where it actually really matters. Bringing all of consumer packaging business under one umbrella has unlocked tremendous potential. We have broken down silos which we have been operating with after the many great acquisitions that has built this business. To give you an example on the commercial front, we have reorganized to true end market segment alignment with a strong backbone in commercial excellence, pricing, and estimating, as well as in innovation and design. Our sales team used to have several different market verticals in place that were overlapping and operating under multiple different P&L structures. There was a lot of confusion, and we have fixed these things. These changes to our commercial approach enable us to focus on specific needs in our end markets while leveraging our scale and the best practices. From an operations perspective, we are harmonizing our approach to quality and health and safety to become nimbler and cost-efficient, while at the same time eliminating duplication to drive efficiencies. A good example is how the newly combined organization enabled insourcing of several tool manufacturing activities that we use in one siloed part of our business, while another part had idle capacity, and we just eliminated the outsourcing. There's, like, good opportunities in the organization. Finally, on the people front, we have made tremendous strides in terms of improving our employee engagement, enhancing our talent pipeline, and a stronger accountability across the organization with more transparency. With the former siloed organization, we were just simply not firing on all cylinders, and that had a tremendous redundancy effect in our organization that added to our cost structure while negatively affecting the effectiveness that we had in the market. I'll give you an example on the operations side. I'm highlighting an example of our sheet fed press performance versus the industry. These charts are provided based on anonymized data from one of the leading printing OEMs in the world. We have a greater than 20% advantage on average machine speed. We are driving more than twice as many impressions across the presses versus the industry, and we have a greater than 50% advantage in our overall equipment effectiveness speed. These metrics simply highlight that we're good operators today. As I spoke about earlier, we have a lot of additional opportunities left. You'll hear Peter Anderson as Chief Supply Chain Officer talk about the One WestRock operating system. When we put that all together, we have a great opportunity to unlock additional capacity from our assets and then drive increased productivity. Our operations have a really critical role to play in driving profitability and supporting our growth. Operational performance highlights our ability to do this. In conclusion, Consumer Packaging has delivered strong results in a very, very challenging environment. This includes over $400 million in top line growth, $150 million in price capture this year, and 16.5% EBITDA margins in our most recent quarter that was announced last week. This speaks to our strength, the balance and resiliency of our portfolio. We have helped our customers weather the storm and help them move through their biggest challenges, while we've also captured the benefits of operating as one integrated Consumer Packaging business. The outlook for our Consumer Packaging business is very attractive. We will grow profitably across our core portfolio. We are leveraging our innovation capabilities to support this growth and help our customers on their sustainability journey. We're also extremely focused on driving productivity and return on capital across the entire network. This is such a critical component of our ability to further improve our margin profile. Finally, we are going to continue to invest in this business. Our customers want to grow with us, and we know that we have the ability to bring a wide range of attractive solutions to them. These opportunities will allow us to improve our margin profile and together with our investments, improve our ROIC. We look forward to continuing to unleash our full potential and further position our Consumer Packaging segment as an engine of profitable growth for WestRock. Thank you very much for your attention. I will now hand over to John O'Neal, who's the President of our Global Paper segment. John? Thank you, Patrick. Good morning, everyone. My name is John O'Neal, and I have the privilege of leading our global Paper business. I'm very excited to talk about our Paper segment today. It's a part of the business we've previously not talked much about, and I look forward to getting into it today and sharing you more details about this part of our business. David has set a clear agenda, and there is strong alignment on the four priorities that he laid out earlier. WestRock has a unique opportunity to drive significant shareholder value by executing on those priorities, and we're doing just that. As I will share, WestRock is a packaging paper market leader with the focus, scale, breadth of offering, global reach, and asset flexibility to navigate a variety of market conditions. By bringing our paper and mill system together, we have unmatched capabilities to drive significant value. Our Paper business is on the leading edge of many of our most innovative solutions. We are investing to create more sustainable packaging papers to help solve our customers' most pressing challenges. We are delivering attractive margins, but we are relentlessly focused on driving further improvements. We are focused on protecting and growing our core customer paper relationships while also supporting the profitable growth of our downstream integrated packaging businesses. We have, and will continue, to reduce our exposure to low and lower-margin parts of our Paper business. We work very closely with our mill operations to identify, as part of our capital strategy, the most productive assets and the right investments to make to ensure our mills meet our customers' needs, both now and in the future, to solve their most pressing challenges, while also allowing us to deliver against our innovation, sustainability, and our own financial goals. As David shared, the Global Paper segment is a newly organized part of our business that brings together the commercial operations and the financial results of our Paper business into one consolidated view, providing investors insight into this important part of our business. Global Paper is an approximately $5 billion revenue business, selling more than 6 million tons, delivering attractive and growing margins. Organized this way, we are managing our business differently and driving improved outcomes that are delivering near-term results and set us up for future success. I'm gonna share a lot of those details in our discussion this morning. WestRock operates a scaled, cost-competitive, highly flexible mill system that is unique in the industry because of our ability to make the widest range of substrates of any producer in North America. In total, we make nine substrates, producing 16 million tons from our 31 mills in North America. We sell that through both our packaging businesses, but also to our external customers. By operating our Paper business and our mill system as one, we are seeing more opportunities to leverage our scale to create significant value, both operationally and commercially. As you heard from Nickie and from Patrick, we will profitably grow our downstream packaging businesses. Combined with our external sales, this multi-channel approach creates options for our mill capacity. We work together to optimally utilize our paper to meet our key strategic objectives. In doing this, we get a clear focus on serving the most profitable business through the market cycles. We will leverage both internal and external channels to maximize the profitability of the overall business. This approach allows us to compare our customer opportunities in the paper business to opportunities in our downstream packaging businesses and ensure we drive outcomes that meet our strategic objectives. Managing paper as one segment ensures consistent insight into product profitability and allows us to drive improved performance and reduced volatility. In the subsequent slides, I will speak to the benefits we see for managing our paper business and our mill system as one, allowing us to leverage our geographic reach, our asset flexibility, and our channel options to help achieve the financial goals that David laid out earlier. We are a paper leader with a number one or two position across a range of substrates globally and in North America. Our mill network is flexible, cost competitive, and has attractive mix of both virgin and recycled grades that ensures we have the right products to meet our customers' needs, ranging from sustainably managed virgin fiber products to recycled products, all leveraging our leading position in the circular economy. Our geographic reach is an advantage as we can swing sales into a variety of regions through both direct sales and through strategic agent relationships, taking advantage of different market conditions around the world. We also serve end markets that are not directly correlated to our downstream packaging businesses, creating flexibility for us to move volume between channels based on different market needs. Approximately 55% of our paper sales today are into applications that do not overlap with our core packaging businesses. This diversity creates flexibility for us to play in markets with different dynamics and to adjust our sales based on the needs of the various end markets and geographies that we sell into. We like the optionality this creates to support profitable growth of our core packaging businesses, both internal and external, but also other global markets with their own set of competitive dynamics. An example of our geographic diversity is our participation in the attractive markets of Latin America, including Mexico. We are a leader in the growing Latin America packaging market. We participate through sales from our virgin-based mills in North America, our leading low-cost mill in Brazil, and through our joint venture with Grupo Gondi in Mexico. We like the growth in Latin America, growing at more than twice the rates in North America. Beyond demand growth to support the growing local economies, we also participate in the produce, protein, and the industrial goods sectors, all creating strong demand for virgin fiber-based packaging. We are well-positioned to meet the needs of our customers in those segments. With the expansion of our Três Barras mill, we produce more paper than we consume in our highly profitable Brazilian packaging business, and our high-performance kraft liner is a differentiated premium product that has been readily accepted by converters around the globe. From both a capability and a logistics standpoint, our North American mill system is well-positioned to serve the growing needs of customers in Latin America for virgin kraft liner, semi-chemical medium, and virgin white top. Grupo Gondi is a leader in Mexico with an integrated mill system and a well-regarded packaging business serving some of the world's leading brands. We supply both containerboard and paperboard to Grupo Gondi and partner with them on packaging solutions, leveraging our patented designs and our industry-leading beverage packaging machines. The growth trends in Latin America are very, very positive, and our position in these markets is unmatched. We are well-positioned to meet our customers' most challenging needs and continue to deliver very attractive margins from this important region. As I share, our paper end market participation is wide-ranging, with markets at different points in the cycle with their own set of unique competitive dynamics. We have not previously shared our end market participation, so in this slide, we break out the relative size of our positions and our perspective on market attractiveness. Sharing this perspective also gives you a sense of how we view the optionality we have in the different end markets, leveraging our very, very flexible mill system. We are intensely focused on continued improvements in our margins, as well as reducing the volatility of those margins over time. We are taking actions in each of these markets to reshape the profitability of the business through changes in contractual terms, mix improvements, shifts in logistics, and through price increases to offset the inflation we're seeing. Our domestic containerboard position is solid, with customers valuing our unmatched range of products, our large mill footprint with backup manufacturing capability, and a leading service position that ensures reliable supply to domestic converters. We are the global leader in virgin white top, and we will benefit from the continued trends in high graphics printing and from our leading U.S.-based manufacturing footprint. We are the leader in domestic paperboard food packaging with the ability to supply a range of substrates to domestic converters. Domestic folding carton customers value our scaled portfolio and our support of the independent folding carton market. We are the largest kraft producer in North America in what is largely a non-integrated business. We see profitable growth opportunities in kraft paper, where demand, driven by sustainable packaging trends, is forecast to grow quite significantly. This will be a growth area for us, leveraging our low-cost assets, our unrivaled range of products, and our ability to meet our customers' sustainable packaging solutions. Our SBS food service business profitability continues to improve. Demand is robust, driven by a return to traditional uses and a reopening of venues and acceleration of foam and plastic replacement trends. Our unbleached, uncoated, virgin folding carton grade, UUK, or KraftPak as we call it, and our saturating grade, DuraSorb, are products we make at our Charleston mill, where we also make kraft liner. These specialty grades are growth opportunities for us, driven by sustainability trends and by continued growth in global construction markets. We are a leader in UUK and saturating kraft and are building out customer pipelines and working with our mill team to improve flexibility to make these grades at Charleston. The outcome of this work is increased leverage to growing non-correlated markets that allow us to shift production from kraft liner if relevant economics support that decision. We are the leading supplier to commercial printers in North America. Tango is our branded offering and is a premium product in the market with high degree of runnability, consistency, and printability. We are enjoying a very nice demand recovery in this part of our business. We have a very valuable franchise. Key strategic partners continue to win customers with our unparalleled offering. In some end markets, we are reducing our exposure, while at the same time improving the profitability of the remaining volume. Tobacco and liquid packaging fall into this category. These moves allow us to shift volume into more growing and profitable end markets. We have reshaped our participation in the export containerboard market with changes to our agent network, our product mix, our customer focus and concentration, and our geographic focus. These moves have resulted in much improved financial performance in this part of our business. You should expect our actions in the export markets to continue to focus on reducing volatility and maintaining the attractive margins we are now earning. With our announcement of the closure of the Panama City mill, we will reduce our exposure to pulp markets. Fluff pulp is not a core market for us. Our participation in market pulp will be selective, will be based on market conditions or to balance our mill production. A key lever for us to manage the dynamics we see in the marketplace is through a highly flexible mill system that can make a range of products at different mills and on different paper machines. In our containerboard network, we have the ability to make a range of containerboard products, but also kraft paper and the specialty grades that I mentioned earlier. This flexibility translates into more than 2 million tons of swing capacity that can move between different end markets and geographies, and we can do that today. This is an important lever as we see new capacity coming into the North American containerboard market as we look to balance our supply with customer demand. We are developing commercial plans to leverage this flexibility to help us navigate changing market conditions. Our virgin paperboard mill system is also highly flexible, with the opportunity to swing between bleached and unbleached grades, including C N K, to serve growing food and beverage end markets. We have other mills that also have a range of product flexibility, and we are working with Tom Stigers and our mill team to identify additional levers we can develop through high-return capital investments to increase this flexibility. Our Dublin, Georgia, kraft paper and containerboard mill and our Charleston, South Carolina, specialty and containerboard mill that I mentioned earlier are good examples of where we're looking at this kind of flexibility. A great example of this flexibility and where we've brought it to life here very recently is at our Evadale, Texas mill, where we're driving value for WestRock and for our customers. In the last 18 months, we have flexed this mill from a 100% bleach system to one that makes a range of products, including both container board and C and K. The move to liner board at Evadale PM 4 in late 2020 was critical in our ability to meet growing demand in our corrugated packaging business and to shift away from weaker SBS markets. Our ability to quickly shift production to 180,000 tons annually of liner board drove a $70 million benefit versus the downtime that we otherwise anticipated. It also served to reduce the pressure on the hardwood fiber basket in the region, which had a direct effect on the remaining hardwood purchases for the other two paper machines at Evadale. As SBS demand strengthened from the initial COVID drop, backlogs increased, and we have subsequently realized improved profitability across our entire SBS system. Reflecting current market conditions, we have switched D 4 back to bleach grades during March to fulfill incremental customer demand in food service packaging, further highlighting the flexibility we have in the system. We are evaluating further opportunities to make bleach grades on Evadale 4 on a go-forward basis. We've also talked about the flexibility we have on Evadale PM 2 to make C and K or to make bleach grades there. This flexibility has allowed us to meet growing demand for food and beverage packaging and to better serve our customers. Moves like this give us confidence we can continue to nimbly navigate changing paper market conditions to reduce volatility and to maintain attractive margins. We have accomplished a lot in the last year. I'm really proud of what we've done as a paper business and bringing it all together. We're not done. We are building a key capability for WestRock to help us achieve our financial goals. We believe our approach, coupled with the flexibility of our system, is unique and positions us to drive sustainable performance. Since June, we have made substantial progress building a leading paper business with governance, systems, and processes to execute our strategy. We have improved our margins from 14.8% in FY 2020 to 17.7% in FY 2021, and we just delivered margins of greater than 20% on the prior quarter. We have executed a number of market-based price increases and have also been able to drive price increases with customers through contract negotiations. We have demonstrated our ability to navigate very complex market conditions and to leverage our highly flexible mill system to drive improved outcomes for our customers and for WestRock, both in paper and in packaging. We are well-positioned to maintain our leading position in paper and packaging through an unparalleled portfolio and our approach to the business. Looking ahead, you should expect us to continue to grow and protect our most important customer relationships, to reduce our exposure to less profitable end markets, to grow volumes leveraging new innovation, and to expand the flexibility of our mill system to meet customer needs in very dynamic market conditions. Thank you. With that, I'll ask David to join us back on the stage for some brief remarks and to take us to our break. Thank you, John, and thanks to all of our presenters this morning. Hopefully, it gave you a flavor of how we're thinking about our businesses and the tremendous opportunity we have. We're gonna take a 15-minute break. We'll be back about 10:05 A.M., and there's some refreshments in the back. Then you'll hear in very specific detail from our Chief Supply Chain Officer, our President of our Mills, and our Chief Marketing Officer what that opportunity is for our margin expansion, where our growth opportunities are, and then Alex Pease, our Chief Financial Officer, is really going to sum everything up and provide some details on our financial future. With that, thank you for your time this morning, and we look forward to seeing you in about 15 minutes. All right, well, welcome back. We are really excited about the second half portion of our morning. With it, I'm gonna start us right off with the President of our mill operations, Tom Stigers. Thank you, David. Good morning, everyone. I'm Tom Stigers, and I lead WestRock's mill operations. I'm excited to be here and share with you information about our mill system, team, and the progress and plans supporting WestRock's strategy for long-term value creation. We've taken significant ground over the past year, and in the near term, we will materially upgrade our mill asset quality and performance. Today, you've heard much from my peers about WestRock's four-pronged strategy for long-term value creation. Now, I'll share how the mills also play a critical role in delivering on each of these value drivers. Starting with leveraging the power of One WestRock, we've aligned the mills into one organization. We've disaggregated them from the converting groups. We have also changed the mills from profit centers to cost centers, driving greater focus on controllable costs and improving margins in our converting and global papers business. We've realized material benefits from the combination of implementing standard metrics, sharing personnel, and uniform practices across the larger fleet. On expanded grade flexibility, building on the information that John O'Neal has just shared with you, we've increased the amount of facilities that can flex our major substrates, optimizing margins and improving already outstanding customer service. On our focus on sustainability, we're committed to improving the environment. Targeted investments will advance our sustainability efforts. As we drive to meet our Science Based Targets initiative goals, the heavy lift is in the mill system. We've defined the path required to reach our target investments will be needed to will be complementary to our footprint optimization, cost, and efficiency improvements. On margin improvement, three main areas of focus will drive efficiency and improvement. Targeted capital investments, digital transformation, and our comprehensive operating improvement process. On capital allocation, we will preferentially direct capital to our best facilities with the highest returns improving our mill asset base. Panama City closure is just one example of that. Prioritizing high returns and making the tough decisions to make WestRock stronger going forward. Panama City mill would have required substantial capital and had limited scale and produced non-core grades. Resources that would have just maintained the status quo will be leveraged to improve our best assets over the long term. In successive slides, I'll share more color on these value drivers and show that in the future, WestRock's mill fleet will be a positive differentiator. Before I jump into the value drivers, a quick primer on our mill system. WestRock has the largest and most comprehensive packaging grade mill network in North America. Our total system produces 16 million tons a year of containerboard and paperboard products with a 65/35 virgin recycled furnish mix. These capacities and furnish figures that I just shared do not include the four mills in our Grupo Gondi joint venture in Mexico. Our mill system was born of multiple acquisitions and the Rock-Tenn, MeadWestvaco merger, giving WestRock the broadest portfolio of substrates in the packaging business. In the past decade, we have closed low-scale, higher-cost facilities and made capital investments that have generated very attractive returns. Shown here is a small sampling of the many projects completed in the recent past that have delivered returns from the mid-teens to 30%. A few examples to highlight. We replaced three low-scale, inefficient paper machines at our Florence mill with a 710,000-ton-a-year paper machine. To those of us in the paper-making line of work, it's a real thing of beauty and a remarkable advance in technology. We recently completed the expansion of our Três Barras mill in Brazil. Already one of the lowest cost virgin containerboard mills globally, we increased production by 230,000 tons annually, further lowering our cost of manufacturing by an additional $40 a ton. Going forward, we have a unique set of opportunities to invest in our mill system. We will preferentially upgrade the best mills, driving scale and lowering our cost of manufacturing. An example of one of these opportunities, a recently approved project underway at our Hodge, Louisiana mill. We are replacing the wood yard in its entirety, which will reduce costs at that mill by $20 per ton. Going forward, we'll leverage the engineering for large-scale cost improvement projects like this wood yard replacement across our fleet when undertaking similar upgrades. Our recently unified mill organization has enabled us to standardize processes and tools across the network, both important elements of our new productivity improvement process that will deliver substantial results. We utilize a zero loss analysis process that rapidly identifies cost and productivity improvements. This is a component of our One WestRock operating system, and our learnings are shared across the enterprise in its entirety. The punchline here, efficiency gains will enable further footprint optimization and a step change in cost. Our targeted reduction is $20 per ton. None of these improvements would be possible without the best mill team in the business. Our dedicated and talented mill team is poised to deliver on our value creation goals. On the sustainability front, our mills play a major role in meeting our bettering the planet sustainability objectives. We have already reduced water consumption and optimized fuel mix across the system. The Panama City closure will reduce our reliance on coal, and going forward, boiler fuel conversions will play a key role in further reducing greenhouse gas emissions. Some have suggested that our forward-leaning sustainability goals will be costly and yield low returns on the required investments. On the contrary, we have developed our sustainability plans, and the significant required investments are complementary to our cost reduction and further footprint optimization efforts. I've spoken to improving productivity, and in our terms, that's unlocking the hidden factory across our system, allowing for additional footprint optimization and reducing costs. A key element of this strategy is a step change in the utilization of digital tools. By improving process improvements, instrumentation, and installing predictive analytic tools, we will make paper making less of an art and more of a science. An excellent example of the power of this innovation, at our Florence mill, we've invested in digital analytic capabilities. These advanced machine learning algorithms and data science have been used to identify the root causes of issues impacting our operations. The results, we've increased machine speed 15% and reduced breaks on primary grades, generating over $15 million a year in value. In today's post-COVID world, it's become more challenging to obtain technical expertise on short notice. The use of augmented reality capabilities has allowed us to access to experts where and when needed. Summing up our value creation efforts, what we've accomplished, we've united the mills together into a system and have realized substantial benefits. We have created an accelerated savings capture productivity program that is paying great dividends. We have expanded the production flexibility of our system, producing multiple grades across our footprint. We've demonstrated a shift in investment strategy, prioritizing investments in the strongest assets with the highest returns. Where are we going? We will continue our march to improve mill asset quality and scale. Future investments will have hurdle rates of 15% on larger strategic scale projects, 25% on smaller projects. Mill investments and our accelerated improvement process will deliver a targeted cost reductions across our fleet of $300 million per year, and we will deliver on our Science Based Targets initiative goal of 27.5% reduction in greenhouse gases by investing in upgrades at our facilities that are complementary to our other value creation goals. Lastly, we will continue to advance forward on our digital journey, implementing new technologies across our fleet, targeting $200 million of incremental benefits. With the progress we've made and all that we deliver in the near term, we will show that this ain't your grandma's mill system. Thank you very much for your attention. Now I'll turn it over to Peter Anderson, our leader of our supply chain group. Thank you. Well, good morning, everybody. I think I can categorically say we don't have grandma's mill system. It's great to be here with you today and to actually be able to share some of the great things we're doing with the supply chain across the organization and some of the plans for the future and the opportunity that we actually have. Got to remember as we talk about it, the supply chain is here to support the segments, and the segments drive what we do with customers. It really is about enhancing the customer service and cost and profitability for the organization. I like to say to my team, in supply chain, we've got two races to run. We're running a sprint, which is actually about maintaining continuity of supply today and about delivering the cost that we need to on a daily basis. We're also running a marathon because we have a great transformation to undertake over the next few years. It's the transformation I really want to talk to you about as we go through the next few slides. Aligned with all of the other presentations today, we're very much aligned with the four focus areas of long-term value creation. I'd just like to talk to those for a few moments. WestRock has been on a significant journey for the last seven years. Well, probably even greater than seven years. We've done little over those years to actually create a true functioning supply chain organization. Many of our supply chain activities remain decentralized, leaving an opportunity to leverage scale, to optimize the entire network and harmonize many of the processes. During that, as you'd expect, we'll leverage new capabilities, new systems. We'll address many challenges that we face today with that, and more importantly, we'll integrate more closely with our customers. You've heard John and Patrick and Nickie talk about the stickiness with our customers, and that really can be driven from supply chain as well. A key message today is this isn't all about the long term. We are looking at how we can optimize in the short term as well, because that's really important. Maintaining continuity of supply, mitigating inflationary pressures as we continue to address supply and transportation issues. Since David arrived and since I came on board, we have taken a comprehensive review of all of our supply chain activities. We've identified many improvement opportunities across manufacturing, planning, purchasing, and logistics. As you'd expect, many of those areas that we've identified, we're already working to deliver the benefits of those and creating the One WestRock supply chain of the future. The plan can't be implemented immediately. It will take a number of years to get to the end state. We do recognize that we have to deliver improvements in cost and service immediately. We've got a very much a robust plan, and we're focusing on prioritized areas to drive that value. As you'd expect, automation and digital is absolutely key to how we will drive the supply chain of the future. You've heard that message not only about how we integrate with customers, but within our own supply chain, that really is a core tenet. Let's talk about the vision for supply chain and how it will be optimized in the future to leverage the synergies that we know exist. We've looked across all areas of supply chain. We've not left a single stone unturned. I mean, my team has done an amazing job over the last six months of looking at the different opportunities that we have. We want to address many things, inventory, flexibility, agility, importantly, costs. They've never been more important as to where we are in the current inflationary cycles. What the team has been doing over the last six months is a full review of a from and a to, and laid out a vision for the supply chain organization and how it will support segments. Let me talk a little bit today about five key areas. In inventory, we operate today in a very traditional supply chain manner. You probably heard, in the past, many organizations used a push model where we make something and then push it out into the organization. In the future, we'll be moving much more to a replenishment or a pull type of supply chain model, where we have much more control over being able to pull the right inventory to the right locations across the network. That will have a significant impact on working capital, and I'll talk about that a little bit later as well. Most importantly, it will increase on time, in full for our customers, 'cause this is about how can we do things better for our customers to make sure that we're the best in the industry. Let me talk a little bit about planning. We have many different systems, many disparate planning systems. We have misalignment of capacities and capabilities across the network. We're in the process of identifying and coming up with a common planning system that will span the whole of WestRock. It will look all the way from raw material right the way through to final customer in terms of inventories and taking into account demand planning, forecasting, supply planning, and all the other elements that are available to us. It will use new tools. It will give us great visibility of the organization as it's happening real time. We'll think about things like multi-echelon inventory optimization, which will assist in balancing inventory across the organization. Great opportunities around planning, and that really is the core pillar of how we'll drive many of our supply chain initiatives. Let me talk a little bit about logistics. We've been facing lots of challenges around suboptimal transportation modes. What I mean by that is we're having to choose a mode, say we have to choose road rather than rail, because rail isn't available. That's creating a lot of extra cost, a lot of extra inventory. We're looking at how can we optimize and get the right transportation modes going forward? How can we cut back on things such as demurrage? How can we use different types of approaches to getting product to our customers? We're looking very much into regional distribution centers and making much more use of centralized inventory and consolidation. As Tom mentioned, a huge area for us that we're looking at is around the hidden factory. We're looking at how in the past we did a great job at an independent plant level. The independent plants did Kaizens, they did their own analysis, and as Tom mentioned, we're now looking in an integrated way across the organization. Thinking about tools such as Lean Six Sigma, zero loss analysis, and driving a very different but standardized approach to reduce waste across the whole of the organization. I'd just like to finish with a little bit about purchasing. We have a large purchasing organization. Everything from purchasing of OCC and fiber right the way through all of the other raw materials, and then all of the indirect materials that are bought for the company. There's been very much a decentralized approach for the indirect side of the organization. We see lots of opportunity to standardize, have common contracts, to leverage our scale and drive use of those contracts across the organization. As you can see, we have a great platform that we're building from, but as everybody has talked about today, there are some amazing opportunities for us to be able to take advantage on as we go forward. Let me talk a little bit about the WestRock operating system and how it underpins all of the things that we're doing in the supply chain. Over the last few months, we've been working with teams across WestRock and leveraging the power of the enterprise to build out that WestRock operating system. We've been taking world-class supply chain techniques to create an industry-leading view and a position on how we focus on service for our customers. We've also been working closely with our suppliers, enhancing our cost position with them while driving supplier diversity and thinking about how we can create more sustainability with our suppliers in the future. Additionally, we've been looking, Nickie, as we talked about earlier around manufacturing and automation, looking internally how we can use much more automation to improve our own manufacturing capabilities in our converting plants. This will drive standardization across the organization. What do we want to do and how have we used it? From a results perspective, we're already talking about how we eliminate functional silos. Instead of talking about a planning team that plans for a particular substrate, thinking about how we plan together and look at things in an optimized and an integrated way. We're looking at how we can improve on time, in full to our customers. That really is a key tenet of everything we talk about in the supply chain. We are reducing non-optimal freight, suboptimal routings, and demurrage across the network. We are increasing reliability and asset utilization, driving cost opportunities, cost optimization opportunities across the network, and looking about how we can integrate the converting facilities in a different way in the future. We have strengthened and standardized processes. We're thinking about how we leverage more around centers of excellence and shared service centers, assisting in SG&A, which, Alex will talk a little bit more about later. Certainly not last, and certainly not least, as we are going through this, we are building upon our teammates. We have world-class manufacturing individuals in our organization, and we're building on their capabilities. Making WestRock the place to be. That will help with attrition, that will help with us actually having a very different way of working in our converting plants of the future. Now let's get to the money slide. Let's transition and talk about where we see those significant potential savings. Let me start by saying we have a significant opportunity ahead to improve annual costs by $400 million-$500 million per year by year-end 2025. In addition, we're working through to reduce working capital by $300 million-$400 million across all of the inventories in the organization. No single initiative will deliver the value that we're talking about. We'll really get there through a number of interconnected projects which will impact both operating cost and CapEx. We will align our supply chain goals to enhance margins, increase customer service, and align with the standardized metrics that David talked about at the start of the session. We'll address many of the inventory challenges that we face today. We'll look at how we can resolve inventory around number of SKUs, inventory being located in the right places. Planning really is a central tenet of what we are doing. We'll look at how we will reduce last-minute planning, move much more to predictive type models rather than reactive. That will help us in many ways. By looking at planning and logistics in an integrated way going forward, there are a huge number of opportunities for us that will deliver $150 million-$200 million in opportunity. Tom talked about the hidden factory and the OEE improvements we're looking at. We have identified a plan over the next three years in terms of how we address that across all of the converting facilities across our network. I'm really excited about actually rolling that out and seeing the progress as we go through. Finally, $30 million-$50 million from the purchasing area, predominantly from the indirects. This will really help us in terms of how we upgrade our capabilities, our analytical capabilities, our predictive capabilities, and about how we can work with customers more closely going forward. You'll hear me keep coming back to the customer piece because one thing that is really changing the supply chain today with the reshoring and customers wanting to be closer, risk and resilience is top of mind for many supply chain professionals, and that means being much closer to your suppliers and customers to maintain supply continuity. Let me move to the last slide and talk about what we are going to deliver and how we're going to do it. We've done a significant amount of work today to create a world-class paper and packaging supply chain. We're gonna make it even better. We've achieved a significant amount in the last six months. Our results show that. We're going to leverage the power of the full supply chain to deliver differentiated solutions to our customers. This isn't just about the product, it's about how we get our product to the customers as well. We're gonna unify systems. We're going to increase efficiency across the whole of the supply chain. Let me talk a little bit about what we've done. Since David came on board, we've created a truly cross-functional supply chain spanning all areas from supplier to customer. We've completed the analysis across all of the areas of supply chain and have prioritized and have a robust plan in terms of how we're going to deliver those benefits and those changes going forward. We've implemented standardized productivity tools driving both cost and capital savings. What we've done with metrics has allowed us to measure all of the facilities in a common way, allowing us to prioritize and focus. We should not forget either, the last two years have been challenging. We still manage on a day-to-day basis continuity of supply, and my team has done a fabulous job in terms of keeping everything going in that process. Finally, lots of quick wins. As you'd expect, as we're finding things that we can move on quickly, we're delivering those and bringing those into the organization. Going forward, this is what really excites all of our team. We're looking at how we implement end-to-end processes. We're looking at what we can do to increase asset utilization. Nickie talked about it in terms of 1% of OEE gives you 5% of capacity release. It's a big focus for us going forward. We're leveraging the new ways of working and looking at how we can actually drive better working conditions and enhance the lives of our teammates even better, developing a sense of belonging from a manufacturing perspective. We're looking at how we can drive that integrated planning system, optimizing inventory, driving $300 million-$400 million in capital savings. Most importantly, we're rolling out the WestRock operating system and initiatives and complementing that with the digital transformation that we're undergoing. I'm gonna use a well-used word today. We have a relentless focus on margin enhancement and increased efficiency, delivering $400 million-$500 million annually by the end of FY 2025 through execution of our robust plan and supply chain. Thank you this morning, and let me take time to introduce Margaret Herndon, our Chief Marketing Officer. Good morning. My name is Margaret Herndon, and I'm excited to be here today to talk to you about what I think is the most exciting and dynamic area of the company, sustainability, innovation, and how we put the customer at the center of everything we do. Let's get started. I'll be speaking to you about four different themes: how we innovate our portfolio, the industry's most comprehensive paper and packaging portfolio spanning corrugated, consumer, packaging machinery, display, distribution to deliver solutions to customers addressing their needs and driving growth for WestRock. We'll look at our robust innovation engine, our core capabilities that we use to create new scalable products to expand into new markets and continue to drive profitable growth in areas like plastic replacement and connected packaging. I'll speak about innovating and bringing new products to market that enable us to expand into new existing markets and move into adjacent ones to drive profitable growth. How are we investing in people, processes, and technology and innovation and sustainability, areas that are key to our purpose to continually differentiate WestRock from all of the competition. I think it's perfectly appropriate for me to start this presentation with our purpose. David mentioned it and introduced it to you earlier today. Innovate boldly, package sustainably. As you know, a purpose is a statement of why a company exists, who you are at your core, and it's most powerful when it's the way you see yourself, but also the way others see you. In a blinded study this year surveying several hundred packaging customers, it validated both our industry leadership and relevance to our customers. First, the top capabilities people think about when deciding on a packaging vendor are innovation and sustainability. That tells us our purpose is highly relevant. Unprompted, respondents said that they associate WestRock more than any of our competitors with being innovative. Over one-third of them said WestRock is the leading brand for delivering sustainable and environmentally friendly packaging products and solutions. We are living our purpose. As David mentioned earlier, today we're releasing our 2021 sustainability report, which details our progress over the last year and includes updated measurable sustainability goals and our new SBTi-approved science-based targets for greenhouse gas emission reductions. I hope you'll download it from our QR code and read it at your leisure. Sustainability is core to our purpose and to our growth, and we have organized under three pillars: supporting people and communities, bettering the planet, and innovating for our customer's customers. Let's start with people. The safety of our people is a top priority. We want every employee to feel safe and protected in the workplace, and we've committed to creating a 100% safe culture at WestRock. Our approach is about eliminating LCEs, life-changing events, and reducing the risk in our operations. The way we're activating is through the implementation of Human and Organizational Performance, HOP. The HOP approach as a key pillar of the WestRock operating system across all parts of our business. With our communities, we participate in an amazing industry, and the future of this industry depends on attracting the best talent, which means preparing people with the right skills. WestRock is not standing on the sidelines. We're playing an active role developing the workforce of the future, investing in educating 1 million people by the end of the decade to make sure that they have the skills in STEM and manufacturing to have a career in this industry. A quarter of those people will be veterans. We have spent about $5 million in direct education programs, and we'll invest more to reach our goal. Pivoting from the future workforce to the workforce of today, we're focused on ensuring we have the best team in the industry, which means a commitment to diversity, equity, and inclusion. We have robust goals to ensure we have strong representation across people of color and women at all levels and leveraging best practices like diverse slates and executive compensation tied to diversity goals. Since 2020, we've established a system of employee resource groups across WestRock, each with its own executive sponsor. Our goal is for everyone at WestRock to feel safe bringing their true selves to work every single day. We're proud of the efforts that have been recognized externally. We have been named one of the Best Places to Work for LGBTQ by the Human Rights Campaign for the second consecutive year. Scoring a perfect 100 on the Human Rights Campaign's Corporate Equality Index is a major achievement and a proof point we're taking bold action to be the employer of choice in this industry. It also sets WestRock apart from its competition. Now let's pivot to sustainability and bettering the planet. Preserving and protecting the environment is core to WestRock, and we're focused on three main areas, greenhouse gas emissions, water stewardship, and work to support sustainable forests. We have committed to a Science Based Targets initiative to reduce our greenhouse gas emissions by 27.5% by 2030. This is in line with GHG Protocol, and we're doing this on top of the advancements we've made over the last six years. This commitment also sets us apart in the industry, and it's meaningful to our customers as it will support their Scope 3 emission goals. We're taking significant actions around water. We will reduce intake by 15% by the end of the decade. We're also committing $15 million to forest and water stewardship projects, and are enhancing water management systems at all of our mills. In addition, we're launching a global employee education campaign emphasizing the importance of water, responsible water use. We are committed to maintaining a forest positive program to ensure the long-term health of our forests. By 2030, we're supporting certification of 1.5 million acres of forest land to recognized forest management standards, and engaging with 10,000 private landowners and their stakeholders to provide education, guidance, and support for sustainable management of their forest lands. Our third pillar is about innovating for our customer's customers. By 2025, 100% of our packaging portfolio will be reusable, recyclable, or compostable. We're extremely close to this number now at 97%. The commitment is meaningful to our customers who are looking to us to support their transition away from plastic to fiber-based packaging. Another difference, point of differentiation for WestRock is we play a role in the entire circular economy, from forestry to paper making, to converting, to recycling, and then putting that recycled material back into our system. We have 18 recycling facilities in the U.S., and in FY21, we reused almost 6 million tons of fiber of the over 7 million tons that we manage. We work closely with a number of customers to recycle their fiber-based packaging as well. Now to how we innovate. We see innovation as core to our purpose at WestRock, and have structured it around four capabilities, with hundreds of talented teammates, PhDs, technologists, designers, working every day to address customer needs today and anticipate future needs. Let's take a brief look at each of these capabilities and the value they deliver. David touched upon each of these earlier. Material science is innovation across our substrates, including formulation and performance characteristics of our paperboard and container board. This includes creating new barrier coatings that help paper behave like plastic. Design. Our design teams bring their insights and expertise to innovate on the look and feel of packaging, how it performs on shelf or online, the rigors of the customer supply chain, how packaging delights the consumer at home, and design for the end of life in the circular economy. Our packaging machinery solution portfolio is a sticky key differentiator for WestRock. It pulls through incremental packaging revenue and is more valuable than ever for our customers who are dealing with labor costs and labor shortage issues. We leverage all of these capabilities to innovate boldly and package sustainably and create patented solutions that drive growth and delight our customers. Overall, we have a total of 2,600 granted global patents and pending applications. Since early 2018, we have doubled the number of patents and applications in our portfolio. We are very proud of the external validation we've received. We have won 70 awards from our customers and from industry organizations for innovation excellence, design excellence, and service excellence. I'd like to highlight one, and that's this year, WestRock was a Diamond Finalist winner in Dow's Packaging Innovation Awards, not just once, but twice. There were nine finalist products that were chosen from almost 200 global submissions for products that met all three criteria: technology advancement, sustainability, and enhanced user experience. Our two winners were the CanCollar solution you saw earlier from Patrick and our recyclable and plastic-free toothbrush packaging used by GSK. Both are great examples of innovating boldly, packaging sustainably. We have a strong presence and focus on multiple attractive markets that are growing. We're balanced and we're highly diversified, which means we are resilient when industry demand fluctuates. We have the most comprehensive paper and packaging portfolio that addresses customer needs around the trends and challenges that David spoke about earlier, such as sustainability, e-commerce, and supply chain disruption. Often where we win and where our customers win is when we bring forward sustainable solutions in primary, secondary, and tertiary packaging and packaging machinery like no one else can, no other company. Since 2021, we've introduced 30 new products and solutions for use by customers across end markets, and our current innovation pipeline stands at about 200 projects. We partner with our customers, providing them with value they rely on that extends far past an individual sale. In a given year, we will hold hundreds of thought leadership sessions where we bring in our experts and present insights and research. We'll host thousands of innovation sessions with our customers, ideating, co-creating, bringing the solutions to them. We frequently work with our customers to announce our wins to the marketplace, and recently announced our partnerships with Swiss Chalet, Grupo Modelo, Asahi Breweries, and Kraft Heinz. We've seen tremendous media attention and interest as we make public announcements, especially when the announcements speak to how we are supporting our customers' sustainability goals. This all translates to customer loyalty and being rewarded for the value that we bring. You've heard from my peers all morning about the individual lines of business and opportunities we have in areas like e-commerce and packaging machinery. What I like to highlight is the breadth and value of the overall portfolio, starting with insights, design, converted products, merchandising display, graphic capabilities, packaging machinery, and distribution. We are in a very unique position to drive value for our customers who are willing to pay for holistic solutions delivered in an agile way at scale. The numbers on this slide represent the opportunities we see globally to address our customer needs and challenges. Now let's take a look at some examples of innovating boldly and packaging sustainably, starting with produce. We are able to approach customers and prospects with new converted products, both in folding carton and corrugated, as well as automation solutions, to reduce plastic and increase efficiency in their operations. This becomes a very unique, differentiated solution that can include primary, secondary, and tertiary packaging. A great example of innovating boldly and packaging sustainably, going back to our purpose, is our work with Dole. Dole has been a customer for over a decade, and like many in the produce segment, have a desire to operate more sustainably. They recently came to us to solve their problem with packaging of celery, which, because of its moisture, requires wax-lined corrugated boxes. We have worked together to provide a patented solution called WeTek, which is a waxless barrier coating that is applied to corrugated. They're starting to commercialize it with us and are now in trials. The result will be that they will be able to reduce 2,000 tons of non-recyclable landfill waste. We also launched a product family on the right called EverGrow, a fiber-based solution for a wide variety of produce types, including punnets, baskets, carriers, and tills. We have WestRock automation equipment that on-site enables forming for many of our EverGrow designs, creates flexibility and supply chain efficiency. Okay, now let's look at another attractive segment, and that's personal care. Chagrin, an emerging brand, came to us wanting an environmentally friendly alternative to plastic for their deodorant line. Our solution is EcoPush. It's a 100% paperboard product with a barrier coating inside to allow oily materials without leakage and a push-up capability at the bottom. This solution enabled Chagrin to move away from plastic, fully eliminate the need for labels because it's printed on the EcoPush, and reduce the need for shipping filler. With EcoPush, we're expanding our presence in deodorant, and we're exploring growth opportunities in adjacent segments like lipstick, lip care, areas like glue sticks and sunscreens. The last couple examples I showed were showcasing a few of our patented solutions, but it's also important to realize that every single day, our 1,200 commercial leaders are working with customers, bringing their understanding of our entire portfolio, the industries they work in, and how those products can be combined to create unique solutions. A great example of this kind of work was with Kraft Heinz. They wanted to remove plastic shrink from their can packs, and they chose WestRock for the solution. We designed an elegant glue-free solution called ClusterWing that enabled them to remove 500 tons of plastic from their supply chain and also reap the benefits of our packaging machinery. We started with insights. We manufactured the paperboard. We designed the Cluster-Wing solution. We manufactured it, and we deliver the automation to improve efficiency. This is just one of many, many examples of providing unique, differentiated solutions with speed and scale to drive value for WestRock and the customer. "Digital innovations are enabling companies to completely transform what packaging can do." That's a quote from Accenture. We agree with Accenture. Over the past few years, WestRock has made significant digital investments, bringing the connected packaging, digital displays, and connected automation to a small but growing set of customers. Connected packaging can help the answer the age-old question: What would a package say if it could talk to you? Looking at the punnet of cherry tomatoes on the slide in here, these are real tomatoes, a QR code printed on the package could lead you to a video on how to make a killer gazpacho. Data coming from sensors on the package could enable a restaurant owner to identify the exact packages that needed to be recalled. A sensor on a corrugated container for a protein customer could help them meet their customers' expectations, ensuring the freshness of their meat patties by making sure the right packages leave the warehouse at the right time. Connected Packaging is an exciting growth area for us to help customers drive greater brand engagement and gain item visibility in their complex supply chains. We're extending digital capabilities to our display business, enabling brand owners to access real-time in-store data on dwell time, demographic data, out of stock data, and other valuable information that can come from an in-store display. I'm proud to say that with Bayer, the display shown here won Display of the Year in 2021, Outstanding Merchandising Achievement from the OMA Awards, which is the highest recognition in the in-store marketing industry. Another digital opportunity is around connected machines, where we're adding connected capabilities to accelerate machine maintenance through augmented reality and improve performance and machine lifespan through an IoT-enabled dashboard, providing streaming data and real-time analytics. These are just a few examples of the exciting digital innovations we're exploring with customers today. We will continue to innovate boldly and package sustainably, putting the customer at the center of everything we do. We will continue on our path to growth by developing differentiated value propositions for products that serve customers in attractive, growing markets. We'll continue to drive profitable growth by creating innovative, sustainable products and solutions through our world-class innovation engine. We'll be rewarded by customers by leveraging our comprehensive packaging portfolio to create agile solutions to address their most complex challenges and needs, such as sustainability, e-commerce, supply chain complexity, and labor shortage. To conclude, I am really excited to stand here today and represent the hard work of the thousands of dedicated teammates at WestRock who have gotten us where we are today, who have helped us play a key role in the circular economy, enable progress on our Science Based Targets initiative, our water intake commitments, and our safety initiatives. Who have started to align our commercial teams to sell One WestRock and always think customer first and advance those valued partnerships, and who have continued to build our innovation engine, working extremely closely with customers. Our world-class team will take us forward too, to reach our bold sustainability, safety, and diversity targets, to continue to deliver growth by solving customer problems with our innovations and diverse portfolio, and to double innovation revenue by 2025. Thank you. Now please welcome our Chief Financial Officer, Alex Pease, to the stage. All right. Thank you, Margaret. It's really wonderful to follow Margaret up here. For those who aren't keeping track, Margaret went through $90 billion of incremental total addressable market for us to unlock as we think about growing the WestRock portfolio. Think about that, $90 billion of addressable market through the innovation that Margaret described. Thank you, Margaret. It's always inspirational to follow you. Thank you to the whole team. I think we've provided an exceptional level of depth and granularity in terms of our plans. By now you've heard a handful of pretty powerful messages. I wanted to highlight just a few of those, starting with the first. We have a distinct, unique, and compelling strategy across four different dimensions. The first, we're gonna leverage the power of One WestRock to deliver unrivaled solutions for our customers. If you think about back on David's remarks, he pointed to $8 billion of cross-sell opportunities. What he didn't mention was that's $8 billion above and beyond the $8 billion that we currently do. That's doubling our share of wallet across our enterprise customers by cross-selling solutions. Margaret pointed to another opportunity for us to sell solutions. She referred to $20 billion in Connected Packaging and another $20 billion in packaging machinery. If you think back to what Nickie said, Nickie pointed out that the packaging machinery business has grown 15% a year since 2017, and we already have 3,500 machines across 38% of our customer base. The second thing we talked about in our strategy is we're gonna innovate with a focus on growth and sustainability. Margaret mentioned the $50 billion plastic replacement market globally, where we're already a leader in the space. She talked about the $100 billion e-commerce opportunity that, by the way, is growing in the mid-single digits and is currently 6% of our sales. On top of that, we're gonna do all this sustainably. We committed to a 27.5% reduction in our greenhouse gas and a 15% reduction in our water usage. We are driving the circular economy, which is gonna be a mega trend that shapes the world through the innovations and the investments we're making. Thirdly, we're gonna have a relentless focus on margin improvement. Again, to just bring you back to what some of the teammates told you, Peter and Tom, if you add up their numbers together, they pointed to $1 billion of opportunity in the supply chain in the mill system. Nickie and Patrick talked very tactically about how we're gonna deliver that by improving our machine uptimes, increasing our machine speeds, and reducing waste and reducing unplanned downtime. Just to help you put some numbers around that, a 5 percentage point improvement in our OEE and our uptime is worth around $75 million-$125 million. This stuff is real. We've got plans to do it. We've got a leadership team that can execute it. In the back office, we think we have about a 200 basis point improvement. Any business that's grown to the level of acquisitions that we have and hasn't really driven integration as fully as it should have, has opportunity. We think that could be as big as $400 million. Add all that up, that's almost $1.5 billion of self-help that we think we can unlock within the four walls of WestRock. We're gonna do that with an extreme level of discipline around how we allocate our capital. We're on track for our seventh consecutive year of delivering more than $1 billion in free cash flow. We deliver cash flow regardless of where we are in the cycle, and that's gonna continue and get stronger as we unlock the opportunities that we talked to you about. We've made investments that Tom pointed to that are delivering IRRs, in many cases, north of 25%. We've invested in Florence and Três Barras. We have authorized investments, and it's underway in the Hodge Mill system, delivering 18% IRR. We announced the Longview box plant, which will both increase our level of integration as well as serve an underserved market where we currently are sold out. The second big takeaway that I want you to hear is we've got a very tangible plan to deliver this through the lens of the One WestRock operating system. That's our way of delivering world-class enterprise optimization. It's our way of delivering all of the operational effectiveness that we've talked to you about today. It's our way of driving commercial excellence and customer focus that Margaret talked to you about. Doing all that's gonna enable us to commit to the significant growth and margin targets in 2025 that David introduced and I'll reinforce, but that's only the beginning. It's only the beginning of the opportunity. That's just three years away. We're gonna go above and beyond that when we get this system working. Finally, you've heard from a group of leaders that are extremely committed to the goals we've put in front of you. The leaders are backed by a team of 50,000 colleagues all around the world that wake up every single day and live and breathe this stuff. They're gonna execute on the vision today, and I'm gonna give you some idea of what that means in terms of value creation. I'm gonna talk through a lot of financial stuff. If you don't take anything else away, I want you to take away three numbers. I can see George typing frantically here. Three numbers, George. $90 billion of incremental TAM above and beyond the TAM that we serve today. $90 billion. $1.5 billion of improvement opportunity between our mill system, our supply chain, and our G&A, delivering at least $4 billion of EBITDA by 2025. Those are the three numbers. If there's only three you take away, those are the three I want you to take away. Let's talk first about the platform that we're gonna build on, as we do this. Through the strategic actions of the last 10 years, we've built an extremely diverse, portfolio and an extremely resilient portfolio. You can see from the graph here, no one business represents more than 31% of sales. We have exposure at scale to some extremely high-growth end markets. We've got home beauty, we've got personal care, we've got healthcare and beverage, all, high-growth end markets that we're invested in. We've built a strategic asset in our global paper business. This platform gives us a leading position in our North American businesses and also allows us to leverage attractive export markets where we have the right to win, which is what John talked to you about at length earlier. If you break it down by segment, Corrugated represents 14% of our sales at just under 17% margin. Consumer is 23% of our sales at just over 16% margin. Global Paper at 26% of revenue is just under 18% margin. Those are fiscal year 2021 numbers. Obviously, if you looked at our most recent quarter, you'd see even stronger results as we begin to see the benefits of the work we're driving through WestRock operating system. Lastly, our about 7% of our sales come from our distribution segment. Shortly, I'm gonna transition to talk a bit about the balance sheet, but I wanna say just a few words about why we undertook the change in our reporting structure that we did, because I know there's some questions out there about that. First is we wanted to break out Global Paper as a standalone business because that enables us to manage it much more strategically. John talked at length about how we're doing that, prioritizing markets where we can win while de-emphasizing markets that aren't quite as attractive. It allows us to be much more strategic and purposeful in terms of how we balance our internal demand requirements versus the external market conditions. It also allows us to highlight for all of you and us the performance of that business externally, which I think we can all agree has been exceptionally strong over the recent past. Second, by providing standalone integrated economics for the converting businesses, we're able to do a few things. First, we can show the benefits of full integration without any confusion or noise from the merchant business clouding those results. Second, we can deliver very distinct and compelling growth strategies, which you heard Patrick and Nickie talk about, for how we deliver enterprise-wide solutions from a single One WestRock point of view. Probably most importantly, we can hold individual leaders accountable on delivering on those objectives. Lastly, as we thought about breaking into new segments, we're able to call out distribution as a discrete business segment. There's a number of advantages in doing that. It allows you to see the performance characteristics of this business, which is quite significantly different from the rest of WestRock, with relatively lower margin profile, but extremely attractive ROIC attributes. I'm gonna transition to the balance sheet for a second. I just went through why we think our business platform is unlike any other in the industry and extremely strong and gives us a basis to really earn the right to win. We also have an extremely strong balance sheet to build upon as well. This balance sheet is gonna prove to be resilient across any business cycle and gives us the financial flexibility to deliver on the capital allocation priorities that I'm gonna detail out later. From a liquidity and a cash flow standpoint, we've generated more than $1 billion in cash flow for the last six years. As I mentioned, we are on track to do that for fiscal 2022, making it seven years consecutively and a profile that we can deliver regardless of where we are in the business cycle. We have more than $3 billion of committed liquidity through three separate facilities. One, an AR securitization facility, second, a cash flow-based revolver, and the third, a European-based revolver. If you flip over to the liability side, you can see we have a very evenly spaced out maturity schedule with 80% of our debt fixed rate debt versus floating rate debt. We essentially are not exposed to any significant industry or interest rate risk. The average coupon on that debt is around 4%, so our interest expense is $350 million a year, which is eminently manageable for us. Finally, we're extremely committed, explicitly committed to maintaining our investment grade rating. In service of that, we've lowered our leverage target to 1.75-2.25, which we're confident gives us the flexibility to continue to invest in growing our business, show our commitment to our investment grade rating, sustain and grow our dividend, and opportunistically buy back shares when market conditions warrant. I'm gonna describe our economic engine shortly, but I really thought it was important to take a moment to talk about pricing. What you're looking at here is a time series chart of kraft liner pricing dating back to January of 2000. 22 years of data. As you remember, John mentioned we have nine different substrates that we manufacture, but this is one of the largest, and this is largely representative of trends you'd see. There's a few interesting takeaways for me from the chart. The first is, generally speaking, although there is obvious volatility in the pricing trend, that compound annual growth rate is 4% per year, which is largely in line with inflation. Yes, pricing does generally trend upward at the rate of 4%. It also generally offsets inflationary trends. Second, you need to go back to here, 12 years. This is January 10, you probably can't see it in the back. You have to go back 12 years to see a double-digit decline in pricing. Just rewind the clock. Remember where we were 12 years ago. Industry structure was completely different. There was a completely different level of rational behavior and discipline in the industry. Maybe more importantly, that was the worst recession in 75 years when we saw a double-digit price decline like that. Last point I'd make on this is if you look from peak to trough or trough to peak, generally the duration of that is around six months to a year. Again, if you were to look at the data closely, it's about six months to a year. Remember, about 60% of WestRock's business is tied to longer-term contracts. There's generally between a three- and nine-month lag between price adjustments and when we actually realize that. We've been feeling that, by the way. On the upside, as you've seen the margins for paper dramatically outpace the margin improvements in consumer and corrugated because of that lag effect in price realization. The benefit of that is that means in the converting businesses, you have a level of stickiness on the downside as well. With three- to nine-month lag between price adjustments and realization, you're largely insulated from a lot of this near-term volatility. All of this combines to give us the significant confidence we have in our long-term guidance and our ability to maintain above-market performance in this environment and regardless of where we are in the cycle. Let me shift gears and talk about our value creation model, which we've organized around four pillars. The first is sustainable revenue growth, which is a significant opportunity for WestRock to drive value. When we broke down our revenue, we found that half is from markets forecast to grow greater than 4% annually between 2021 and 2025. We're doubling down on managing our mix of business with a focus on these high-growth markets such as food, beverage, e-commerce, and healthcare. We're driving innovation in the circular economy, digital, packaging, machinery, unlocking that $90 billion incremental TAM that Margaret and I spoke to you about. If you shift gears to the second pillar on margin expansion, Tom talked to you about a $500 million opportunity in deploying the WestRock operating system throughout the millwork network. Peter got up and coupled that with a $400 million-$500 million opportunity in deploying the WestRock operating system in the supply chain. We're making investments in productivity. We're modernizing our assets. Those are returning greater than 15%, in some cases, greater than 25%+ IRRs. I'm committing to a 200 basis point opportunity in improving our G&A as we invest in our back-office systems and our sales infrastructure. That alone is $400 million, the second big number you were supposed to pay attention to. That's $1.5 billion of internal self-help opportunity that we've identified as an aspiration. The third column, our strong cash flow speaks for itself. We have an expectation that fiscal 2022 will mark the seventh year of adjusted free cash flow greater than $1 billion. Peter mentioned to you an opportunity to unlock $300 million of working capital through better inventory placement and utilization. We have more than enough cash to fully support our strategic priorities and our capital allocation strategies. Speaking of that, we are committing to an extreme level of capital allocation discipline with a commitment to an ROIC of more than 10% by 2025. For those who are still a little bit skeptical on the growth aspirations that we've laid out, I thought I'd come back to a slide that David shared and each one of the team members referenced in their presentations. We've mentioned a number of industry mega trends that are impacting our customers. First, you talk about the sustainability mega trend. This is a $50 billion opportunity in plastic replacements alone. You talk about changing consumer and customer preferences. It's no longer enough for our customers to demand sustainable solutions. Our customers are demanding sustainable solutions. A couple of notable data points. In 10 states, already they've banned plastic bags. In 175 nations have joined with the UN to shift away from single-use plastics. Shifting to e-commerce, I mentioned this is a $100 billion market. It's 13% of retail sales, 6% of our business. It's growing 13% annually through 2025, and we are right in the center of that. Digital and automation represents a $40 billion addressable market split between smart packaging and automation. That's being fueled by the last two megatrends, retail margin compression, demanding cost savings opportunities, and labor shortages and supply chain disruptions, as well as the onshoring trends that David referred to. Only WestRock, only WestRock has the breadth and diversity and solution portfolio to deliver against these mega trends. Only WestRock does. Let's talk about margin for a second. As the business leader spoke about before, we have significant opportunities to improve productivity throughout all the businesses. In corrugated, we have line of sight to how we're gonna improve our mix and upgrade our assets. In consumer, we have significant opportunities to grow with our customers demanding plastic replacements and other value-added solutions. We've talked at length about the opportunity to lower cost in both our mills and supply chain organizations with significant opportunity there. Utilizing our operating system, we see a clear path to over 19% margins by 2025. There's a lot changing across WestRock 2.0. One thing that isn't changing is our ability to generate extremely strong cash flow regardless of where we are in the cycle. Since 2016, we've generated more than $1 billion of free cash flow annually. I mentioned this year we're on track to make that the seventh year. I mentioned through our initiatives, we see an opportunity to optimize working capital, free up more than $300 million of inventory. This cash flow is the backbone of our business, and it'll allow us to invest and drive value and achieve the targets that we're laying out, which leads me to talk about how we think about capital allocation. At the core of our capital allocation strategy is a focus on growing ROIC to greater than 10% while continuing to generate significant cash flow, all with the flexibility to adapt to ever-changing market conditions. First priority on the wheel is to appropriately invest in our system with ongoing capital needs of roughly $1 billion a year, split equally between health and safety and environmental investments of about $500 million, and about $500 million in productivity-related investments, generally generating above a 25% IRR. On top of that, we have opportunities to invest in strategic projects, invest back in our business to deliver the growth that we've articulated. That's likely to be somewhere between $200 million and $500 million a year. Those projects generally generate an IRR greater than 15% at a minimum. As we spoke about on our earnings call, we're gonna continue to reduce debt and maintain a leverage target between 1.75x and 2.25x. This is part of our commitment to maintaining a very prudent balance sheet and a strong investment-grade rating regardless of where we are in the business cycle. We are committed to a sustainable and growing dividend. We've raised that 25% since February of last year, and we are going to commit to continuing to grow that as our business continues to improve. We have confidence in our business and our ability to sustain and grow that dividend. Let me take a moment to just talk a little bit about our leverage history. Again, this is a chart dating back to fiscal year 2016 all the way to fiscal year 2025. You can see that historically, the company has used its balance sheet to drive M&A-related growth. At its peak, pushing leverage to 3.13 x, which it promptly pays down through the strong cash generation. That's been the historical strategy. As David emphasized, and each of the team reinforced, our strategy has shifted. We have a new strategy. We have significant internal self-help opportunities to unlock that $1.5 billion that I talked about. Our focus has shifted from acquisition-fueled growth to driving what value through the WestRock operating system and unlocking that $1.5 billion of value that I talked about. We're basically gonna do better with that strong platform that I opened my presentation on. Going forward, we're committed to this 1.75x-2.25 x target. We are not going to do transformational M&A that takes us above that target. Let me explain how we think about, M&A. First and foremost, we are not going to go above our new target that we've articulated. Second, we need to see a path to strong returns in line or better than our overall aspiration. Third, any target must have significant synergies, attractive margins, and an attractive asset portfolio. The acquisition must fit in with our core strategy. It must either allow us to grow in adjacent markets or give us the technological advantage to unlock that $90 billion TAM that Margaret talked about. In the near term, our focus is solidly on tuck-in acquisitions, and we're committed, as I said and David reinforced, to not doing any transformational deals. Let me shift and talk a bit about how we think about portfolio evaluation, because that's a big part of WestRock 2.0 as well. I think it's important to know portfolio evaluation isn't just about pruning the portfolio, it's also about growing the portfolio. As we look at all the assets that we have, we're actively deciding where we want to invest and where do we wanna reduce the investments that we make. If a business is a strategic fit, has high returns, has strong asset utilization, and has strong future growth potential, we're gonna invest. Examples. Florence, Três Barras, the Hodge Mill Yard, the Longview Box Plant. There's others that we haven't communicated externally, but those are at least four that put our money where our mouth is. On the other hand, if we don't see the path to get to the required returns, we're gonna make hard choices. We're gonna close assets. We might divest assets. At the end of the day, we're gonna focus on maximizing the value of the platform that we have and making decisions that lead to the highest value for our shareholders. Over the past year, we've come an extremely long way, and there's been a lot of really hard work. We've realigned the organization. We've revamped how we make capital decisions. We've increased our dividend 25%. We've repurchased approximately $700 million of shares. We've developed goals and a pathway to achieving significant returns for our shareholders. Really, that's just the beginning. We have huge growth opportunities in very, very large markets. We're well-positioned to adapt to the mega trends we've talked to you about, especially in the area of e-commerce and plastic replacement solutions. We can increase our ability to cross-sell between our customers almost double the rate, $8 billion incremental to the $8 billion we do today. We have significant self-help opportunities to reduce costs and improve productivity, $1.5 billion in self-help opportunities. Bringing it all together, I wanna bring back a slide that we introduced in Q1, our Q1 earnings call, that gives us a detailed walk of where we expect to be where we were in 2021, where we expect to be in 2025. We tried to add a fairly significant amount of granularity here to give you an idea of the precision and the plans and the work behind building this chart, as well as the magnitude of the aspiration that we have. In One WestRock, we have an opportunity to optimize our portfolio. We can invest in high-margin businesses and divest in underperforming assets. You're gonna see our solution selling capability come to life with $8 billion of incremental sales above the $8 billion that we already do. We have the capability to do that today. Together, that's gonna deliver a minimum of 100-150 basis points of margin improvement. Innovation and sustainability will deliver another incremental $50 billion-$100 billion. We're gonna grow our TAM by that $90 billion in total, particularly with the leadership role we're gonna play in driving the circular economy and targeting that $50 billion global addressable market for plastic replacements. We're gonna do that while delivering on the sustainability goals that we published this morning with our sustainability report. 27.5% reduction in greenhouse gas emissions and 15% reduction in water usage. On margin enhancement, you've heard some of the boldest aspirations, $500 million from Tom, $400 million-$500 million from Peter, $400 million in SG&A. All told, $1.5 billion in margin improvement opportunity that we're targeting 200-300 basis points. Then as we optimize around the core, that's an incremental 100-200 basis points as well. We've left ourselves some room to reinvest in the business. If there's areas around R&D that we want to invest more heavily in to unlock that large TAM that I've described, if there's sales force areas that we want to invest in to get into geographies where we're under-penetrated, we're giving ourselves some room to reinvest. We're committing to $4 billion, greater than $4 billion and greater than 19% margins by 2025. Here's our 2025 targets. We see an opportunity for a significantly improved business just three years from now, greater than $4 billion, greater than 19% EBITDA margins, capital returns over 10% and more than $5.50 a share. We have an extreme level of confidence behind our ability to deliver this regardless of all of the uncertainty in the macroeconomic environment. There are a lot of uncertainty in the world, geopolitical, macroeconomic. We're gonna deliver these numbers, and I think I've given you a path for how we're gonna do it. To the extent we can deliver those numbers faster, that's certainly our aspiration. We're working with all urgency to unlock the value potential that I've mentioned. To the extent we get better clarity on the future, we'll undertake to update these numbers. What we wanted to do here today was give you our best estimate with an extreme level of confidence on what we can deliver, and that's what these numbers represent. One other thing that I can commit to you before I turn the stage back over to David, and hopefully you've gotten this sense. WestRock 2.0 is fundamentally different from WestRock 1.0. You've got an extremely committed team that's ready to deliver it. You've got an enormous amount of value that we can unlock. You've got a completely refreshed and redefined strategy. What you're gonna experience in the next three years and beyond is gonna be fundamentally different from what you've experienced in the recent and more distant past. I am incredibly excited about that journey. I know our team is incredibly excited about that journey. I personally think you should be very excited about that journey, and we'd love to have you in it with us. Thank you so much for your support. I'm gonna turn it back over to David, who I think is gonna have some closing remarks and then wrap it up with some Q&A. Thank you very much. Thank you, Alex. Thank you to all of our presenters here this morning. Thanks to all of you for taking time out of your busy schedules to join us. What I hope you heard throughout this morning's discussion was a couple of key things. I won't go through these four in detail, but just to kinda reemphasize a couple things. We are going to grow. We're gonna grow and we can grow faster than the market with our broad portfolio and the opportunities we have in front of us. We are going to grow our margins. You will see significant margin expansions with all of the activities that we have. We are going to get a return on our invested capital greater than 10%, and our profitability is going to grow. We will be over $4 billion of EBITDA. What Alex emphasized was this is despite a very conservative model, this is, inclusive of, anticipated portfolio moves, and this is the minimum that we are going to do. We are going to hit our commitments. As we continue to progress throughout these next three years, our goal is to get there much faster and we will continue to update you as we get clarity on some of these, massive geopolitical and inflationary, environments. We are going to commit to this, we are aligned to this, and I think you heard the opportunity we have beyond this and we are confident in what that takes, to do. We are committed to our long-term value creation for our shareholders and we are aligned on our focus. With that, what I'd like to do is invite some folks up to help us bring some chairs onto the stage and we'll go into some Q&A. We are happy and delighted to answer anything on your mind, any questions you have, and if there's any further clarity that we can bring to any of the comments that we had this morning. With that, I'll have the team come up with some chairs. Thank you so much. Our leadership team to come up. James and Rob are gonna be on either side of the room, and please just raise your hand, and they'll hand you a microphone, or one of them will hand you a microphone, and then we'll get right into answering any questions that you may have. If you could, just, when asking a question, please announce your name and the firm you're from before your question. It'll be very helpful. Thank you. Terrific. Yeah. George, how are you? David, good. I was typing away. Thanks for the details. Appreciate everyone's presentation. I had a two-part question on. Sure. On the mill system. Number one, what do you anticipate your growth rate in production to be over the next three to four years, three-year 25 goals and then more broadly, and what investment in particular are you going to need to make on the fiber lines, not the paper machines, but the fiber lines to keep up with that growth? Do you expect the production to keep up with your converting? Yeah. Question number one. Really good question, and we just got the man to answer it. Running the stage. He's so excited, George, to get your question. But Sorry about that, Tom. We are committed to our investments in our mills, and we do believe there's unlocked capacity that we're gonna generate. I'll have Tom just kind of talk very briefly. Repeat the question. I'm sorry. I was walking in when I heard you speak, George. Oh, sir. Nope. No problem, George. Go ahead, George. Basically, the question is, you have that $90 billion total addressable incremental market. You're going to be growing. What do you expect your growth and production to be? Really, what's the investment you're gonna need to make in the fiber lines to keep up with that production growth? You know, especially on recovery boilers and that sort of thing. Then I had a second question, time allowing. Okay. We match supply to demand, right? We will continue to do that. We will increase capacity at certain facilities and take the opportunity to do footprint modifications and optimization across the system. From a fiber line capacity, we're balanced right now. If we need extra capacity, if we make capacity creep increases on paper machines at facilities that outstrip the virgin capacity at facilities, we'll increase the OCC 'cause it is typically a much lower installed cost basis than the virgin capacity. We continually upgrade and do modifications on our recovery boilers and our fiber lines at all of our facilities. They're all in balance with the current capacities of the mills, and we will continue to invest in them as we need to from a R&M basis. I'm sorry, George. I just wanna add one other thing because I think this is important about our model, which is the beauty of our model, and that is with our integrated packaging business as well as our external paper business. What that allows us to do as we can continue to grow, it allows us to maximize value and invest in the areas where we're gonna get the highest return. You can continue to see us balance our portfolio to balance where that growth is. Totally get it. Can you give us a figure, and perhaps the answer is you can't because you're going to be flexible, but is there an amount in the capital budget that you will be targeting at increasing the ability of the mill system to keep up with the demand, particularly on the fiber line? Is it in that $200 million-$500 million on strategic side? Is it in the maintenance side? If you had a number in mind, I was just curious about that. Maybe I can help with this. Thanks, Alex. We see organic market growth generally in the sort of 1.5%-2% range. On top of that, we mentioned that half of our business is growing about 4% per year, and we've got an innovation pipeline behind that. I think, you know, and if you think about volume growth, sort of those are probably the two bookends. As you think about delivering against that volume growth, there's really two levers we can pull. The first is the $500 million that I mentioned that goes to the productivity-related investments. This is debottlenecking, improving throughput, those sorts of things, reducing downtime. Then I also mentioned the $200 million-$500 million of strategic investments. Now, we have a number of strategic investments that we're contemplating. I mentioned the Longview box plant, which we've talked about. We obviously won't talk about things until we're ready to communicate those more broadly. Think about things, obviously, the box plant's not in the mill system, but there's similar type investments in the mill system that we could contemplate to augment the capacity requirement. Yeah. George, I will add because I think I see where you're going on your question. If you look at our projected free cash flow number, in 2025 with the confidence we have in the EBITDA we're generating, there is some assumptions of strategic investments in that number, which is why we have that free cash flow number. Okay. I'll turn it over. Thank you. Thanks, George. Yeah, Mark. I have a couple of questions. Just for Tom, again, on the mill side. I'm just curious about a kind of a couple of technological shifts and how that affects that mill system. One is this increase in the size of downstream corrugators, and what that does to machine efficiency over time. Then the other is in the recycled boxboard business, which is where a lot of your customers clearly wanna move. A lot of that is very old technology, and your main competitor has recently brought some new, much more sophisticated technology to the market. Are you gonna need to respond to that? I'll address the first question first. The changing landscape from a corrugator width standpoint, you saw the investment that we made at Florence, and that was to take out some 168-inch paper machines that were good trimmers 40 years ago but were unfortunately challenged trimmers going forward. The trim on that new paper machine is 330 inches, so it's 110 x3, which we have many across our system. We will continue to consolidate some of the older, smaller paper machines over time as we do our footprint modifications. But we run our system, our entire containerboard system as just that. We have the flexibility by taking that trim pool over time and optimizing across the system and balancing that with freight and cost of manufacturing. We operate that entirely, that system, as just that, an optimization engine so that we balance the ups and downs in trims. There are still customers that we have that are in the lower widths. We have some that are in the highest widths in North America, the 130-132 range. The second question, could you- Really on just the recycled side of the industry, the recycled boxboard business, because, you know, there's been very little capital put into that business for 50 or 60 years. A lot of the mills that produce that are pretty old mills. Oh, the CRB mills. Yeah. Yeah. We're very competitive on a quality basis, and our mills are strategically located. Our footprint, we have five CRB mills, so from up next to the Canadian border all the way down to Dallas, and they are smaller scale. Yes, some of them are older technology, but they produce quality that's competitive with all of our competitors here in North America as well as Mexico, you know, U.S., Mexico. We actually have a competitive advantage because the freight delta. A competitor that's invested substantially in that, you know, they're up and running, and they're producing a good product. But now, you know, freight is forever. They're producing that in one single location and distributing across to all of their converting facilities. We have five facilities that distribute locally, same as our container board system. Okay. If I can slip just one other one in for David or Alex. Yeah. Just in terms of the portfolio moves, is it possible for you to give us just a ballpark on the magnitude of those moves that we might expect and what the approximate timeframe might be? Maybe I'll give it a quick start, and then I'm gonna turn it over to Alex. You know, that's always a delicate topic, as you well know. Our first and foremost priority is investing in our business, because we really believe with the assets we have, with the right investments, we can deliver the results that we talked about. However, we have developed a very strong threshold of return on invested capital when we make those investments. We have identified assets in our portfolio that don't meet that threshold, where it would require a significant investment that doesn't generate the margins that we need, the returns that we need. What I would tell you is while I just can't speak to it out of respect for our employees and the disruption it would have, I would tell you that we have completed our strategic portfolio review. You saw the first action that we've taken with that. I would just say over the next year or so, I think you'll continue to see us make progress on our strategic priorities. Alex, I don't know if there's anything you wanna add. Yeah. Maybe I'll just help give you at least a heuristic to think about. First of all, I don't think there's a magic number in terms of small or big. It could be anything, and it has to fall into the characteristics that David described. Again, given the acquisitive history, there are plenty of small things that would be perfectly logical candidates that, you know, probably wouldn't generate a large review from you, but they streamline our portfolio, limit our complexity and those sorts of things. There's other things that would be larger that we would contemplate. As David mentioned, we do have, you know, a menu of things that we're evaluating and different disposition options, whether it's harvesting or divestment. You know, we've applied our return thresholds and our investment requirements against each one of those. The last point I would mention, which I think is really important, that Tom talked about at length, is as we invest in our mill system, in our strategic mills, and fundamentally shift our position on the cost curve with some of those mills, debottleneck capacity, that cost curve is going to be dynamic, and that will lead us to evaluate other mills that perhaps aren't candidates for that level of investment. Thanks. Yeah. James, you wanna go there? Thank you. Mark Weintraub. On slide 106, Alex, you had laid out the progression from fiscal year 2021, 16% EBITDA margins, the goals in fiscal 2025, $4 billion+ EBITDA, 19% EBITDA margins. This year, fiscal 2022, the midpoint of your EBITDA guidance is $3.6 billion versus $3 billion in 2021. Obviously a very big step up already. I guess I'm just trying to understand is should we be thinking of the fiscal 2021 as sort of like a baseline? That's like a baseline year that you were using, and then we can think about the margin improvement drivers which you laid out, which should, relative to 2021, be 300 basis points plus. Then there's the scope of where the markets are and things like that, and that can determine how much the plus is relative to the $4 billion as a starting point. Sure. That key point though is like the fiscal 2021, is that sort of a base point level that we should be thinking about as what was implicit in your world view or any other color you wanna provide? Yeah, let me. I'll start, and David will expand. We like to refer to that as slide seven, by the way. We've gotten some equity in our world, so now it becomes slide 102, I guess. A couple of points. You have to strike a baseline somewhere, right? We use fiscal year 2021 as an easy baseline to pick because that's the most recent fiscal year. I wouldn't read anything into that if we thought fiscal year was a more or a less normal year. It just happens to be where we snapped the chalk line. That's the first point I would make. The second point I would make is, we very deliberately pointed to $1.5 billion of self-help opportunity. Some of that will come relatively sooner, some of that will require some investment to unlock. We're giving you a 2025 target, which is just, you know, less than three years away, or three years away. You know, there's opportunity beyond that. To the extent we can accelerate the unlock of that opportunity, there is certainly upside to those numbers. Those are sort of the assumptions that were behind this. The other thing is, just to help with the assumptions, we did assume a fairly resilient pricing environment where inflationary effects offset pricing in line with the historical trends that we've seen. We did project a mitigation in natural gas and OCC and chemical pricing. Really, you know, a lot of it is more a matter of timing and sequencing than it is absolute value creation. We did give ourselves some room to reinvest back in the business. I hope I answered some of your question or at least helped, or maybe David can build on it. No, I mean, I think you captured it. If you think about it, I guess, Mark, what you're saying is on a timing perspective, we did baseline. We only looked at published pricing, so keep that in mind as well. To Alex's point earlier, we will continue to update these. What we wanted to do is take a conservative look at the next three years. We know the importance of committing and hitting our numbers, and we also know the importance of accelerating what we wanna do. We will continue, you know, probably at the end of each fiscal year, whatever that may be, in updating where we're at. You know, hopefully, we're moving faster, and then we can update the numbers accordingly. That's great. If I could, one quick follow-up. In the $1.5 billion that you've identified on the self-help, order of magnitude, can you share how much would already be achieved in this fiscal year, in fiscal 2022? We're just getting started. I would just add, we've gotten some low-hanging fruit in our consumer business, pulling MPS and consumer together. I think you saw that in our last quarter earnings. I think before the end of this year, in our supply chain, you're gonna see some low-hanging fruit. I think over the next 12 months, you'll start to see a ramp. Great. Philip Ng from Jefferies. Thanks for the presentation. Really helpful. The $1.5 billion, certainly a big number. You're confident of seeing that drop through to your bottom line. Certainly, you're assuming pricing holding up and some modest deflation. Certainly, we've seen in the past your predecessors, you know, target some pretty sporty numbers as well. Just give us comfort around your ability to bring it to the bottom line, what's different and Yeah. You can go on forward. Phil, I'm gonna just start, and I'm gonna actually hand it over to the team so you can hear the confidence. Your point is well taken, which is why we maybe took a little bit of a conservative approach in our numbers. We're gonna hit our numbers. We're confident. This team is committed to it, and we think there's upside, and we'll update you as we go around. We think that's really important as we do that. What I'd like to do, and maybe I'll have a couple of our business leaders speak, just to give you an idea of the confidence level we have in building that. John, maybe I'll start with you on the paper side and the resiliency we have with this new segment that we started. Yeah. We really like, and we talked about in our discussion, is the flexibility we have in the paper business. I mean, obviously, we've seen a lot of moves over the last couple years that have significantly improved the profitability of that business with market price moves. We talked about the mix changes that we've made in our business. We talk about the off-market increases that we've been able to drive. All that has substantially improved the profitability. What we've also talked a lot about is the increased flexibility we have in the system and how we're now operating as one paper system and as one mill business, our ability to look across the whole portfolio and think about which end markets we wanna play in. We really like the flexibility that gives us. As we see new capacity coming into the markets, we think we're gonna be able to pivot to other markets, some of those less correlated to our core packaging markets. We think that's gonna create, you know, more stability in our paper business and less volatility. You know, we like the margin structure now, and we look forward to seeing that play out over the next couple years. Yeah. Thank you. I'm gonna just ask Peter to demonstrate the confidence we have with our new global supply chain. Thanks, David. No, I'm absolutely confident in the numbers that we put forward in supply chain. It's taken us a good six months to actually go through and identify the projects at a significant level of detail. It's made up of a number of different projects. It's not just looking and saying we extrapolated. It's down to a level of detail that I think would surprise many people in the six months we've had to do it. Yeah. Thanks. Any color on the pacing of that $1.5 billion in terms of the progression? On- The pacing of that $1.5 billion in self-help coming through by 2025. Yeah. Alex, I don't know if you wanna talk about how we think about margins. Look, I guess the only way I can answer that question is with the guidance that we've provided. $4 billion by 2025 in the buckets that I mentioned. Obviously, we're gonna do everything we can to accelerate that and pull it forward faster. Some of these things are fairly quick, so when we talk about, you know, direct and indirect procurement, that's a fairly quick turnaround within six-12 months. Obviously, to the extent we can address organizational efficiency issues, those are fairly quick self-help issues. Some of them take longer time, right? Investing in the mill assets and driving improved throughput in the mills, that takes time just to procure the capital and deploy the capital. Getting the improved OEEs takes some time. The G&A does require a fairly large level of system modernization work, but we're not waiting for that. We're driving shared services as we speak. It's really a mix, but I would say, in general, it would be more back-end weighted than front-end weighted. Thank you. Thanks. Thanks, Phil. Yeah. Go ahead, Rob. Hey, Kyle White with Deutsche Bank. Thanks for the presentation. Really appreciate it. A lot of opportunity on the self-help side. I'm curious about how the integration falls into that and where you think your integration rates can go by 2025 across corrugated, as well as consumer and the strategy to kind of increase those integration rates. Is it inorganic or do you see more organic opportunities? Yeah. It's a really good question because this is what truly differentiates us, I think, from several of our competitors. I wouldn't give you a specific integration rate that we have. As you know, as of today, we're about 80% integrated on corrugated. We're about half integrated on our consumer side. With the strategic paper business that we have, we are looking at about balance. You'll continue to see our packaging, integrated packaging business grow. You'll continue to see us balance our global paper business as we look at the market-changing dynamics. The key that we wanna say is we are going to deliver the most value across the breadth of our portfolio. John, I don't know if there's anything, any other way you wanna say how we're thinking about integration. Yeah, maybe I'll make a comment on it and let you know, Patrick or Nickie add to it. I mean, we wanna be a leading paper and packaging company, and we really love our franchise on the paper side of it. We're clearly gonna grow organically through our packaging businesses, and I think you heard both Nickie and Patrick talk about that. We'll support that growth, that profitable growth in our downstream packaging businesses. We like the flexibility our paper gives us. We like the flexibility it has to different geographies, different end markets, different channels. We're gonna continue to do both. We don't really have a target. Our target is higher margins, higher return on invested capital. That's our target, and not so much a just a generic integration target. Yeah. There'll be a natural growth rate of our integration just with the growth in our packaging business as well. Nickie, maybe you can even talk a little bit about how we think about it in corrugated and Patrick in consumer. Yeah. I talked a little bit earlier about our new plant in Longview, Washington, which we're really excited about. It's in an area where we're sold out and gives us a chance to really drive growth with the customers in that region. I talked a little bit about in our graphics solutions business, a new pre-print machine. When we think about our most differentiated solutions, we're gonna continue to invest in those and continue to look for ways to improve our capacity, improve our capabilities in those areas. Thank you. Patrick? Yeah. With capacity being tight and demand being really strong in the last year or so, we now have some really great investments in our area in the converting side where, you know, in Claremont, in North Carolina, we're investing. We're doing some other investments to really, you know, bring us up to speed with the latest developments in terms of the converting side of the business and really have those individual projects look at the individual ROICs rather than just peanut buttering out all the capital that we have. That enables us really to grow with the market, to leverage the plastic replacement opportunities we have because those grow above the market. Then with John and the team, we can leverage the timing of that really perfectly, right? This will come on stream over the next couple of years, and we can really balance that out with our paper supply. Yep. Thanks, pal. Go ahead, James. Hi, Mike Roxland, Truist Securities. Thanks very much for the presentation. Hi. Two questions just quickly. On the 19% overall EBITDA margin for 2025, any sense of the breakdown between corrugated versus consumer versus paper and distribution? You know, the last quarter you mentioned, just actually as of last week, that the packaging business earned a 17% EBITDA margin in March. How do you think about the margin progression in each of the businesses, and that ultimately winds up in an overall 19%? Yeah. Thanks, Mike. I'll kick it off. I'll turn it over to Alex. As you know, we don't forecast our margins by business segment in our guidance. I would tell you that our expectations is all of our businesses, save distribution, are driving that margin accretion to that number. Alex, I don't know how you- Maybe I'll try to help you do your own math. If you think about the integrated margins. You can just take the sales volume, and it's roughly 1/3 into consumer, 2/3 into corrugated. When you think about Tom's number, a decent heuristic would just be to use that split Between the two segments. It's probably the same heuristic when you think about Peter's number. The productivity-related investments you would allocate across all three segments because a lot of those are sort of fixed overheads in SG&A, so you would probably allocate it across all three segments. That might help you at least sort of dimensionalize the segment breakdown. Got it. Just one follow-up quickly. Wondering if you'd just share some of the short-term KPIs and long-term KPIs that you have, that you're measuring, really measuring yourself against to accomplish what you've laid out here for today. We have very well-established dashboards, and I'm gonna turn over to the team so they can talk about some of the things we're measuring. Tom, maybe start with you on the mill side, and then we can talk a little bit more on the converting side. Sure. We start off with safety and environmental, and then from there, quickly go to overall equipment effectiveness or OEE. It's a function of speed against standard. It's a function of reliability or uptime, and then perfects. We do that. I mentioned in my part that we do a zero loss analysis. We look at what 100% on all of those components of OEE would be, and that's how we base our improvement process on each individual line. When I say line, it isn't just paper machine. It's all of the components, the unit operations in the back end of the mill. It's building it block by block throughout the whole facility against an OEE of 100%. Yeah. Patrick or Nickie, I don't know if you wanna comment on some of the things we're measuring in the converting sites. Yeah, just to build on that. In the converting sites, we look at machine speeds, we look at our corrugator efficiencies, we look at OEE, and then we also look at things that impact our customers on time, in full. How are we doing to satisfy our customers' needs all the time and keeping that at the center of what we do. Yeah. Maybe in addition to that, we, you know, I talked about the power of putting those two networks that we have together, the MPS versus the food and beverage. We have to differentially manage that because you know, with the fast turnover, the long runs that we have, we just need to make sure that we benefit from both, right? We leverage the fast high touch environment that we used to have in the MPS business and make sure that, I guess, that we remain there because it's so important to deal with the premium part of the market and at the same time, the long runs. If you do long runs, it doesn't mean you have to turn over slowly. That's important too. We benefit from both. I think the other thing I will say is, you know, in the past, I talked this morning about the collection of acquisitions that we have. We have 82 sites across the world. They all have their individual P&Ls, but the markets were more versatile. You could produce multiple product ranges or multiple market segments in one site. The plant P&L doesn't always cut it. You need to go to a segment-based P&L and really look into healthcare versus food versus beverage. What is the true profitability of those markets? Because if you want to invest in one specific markets, then you need to know what the true profitability is in order to make sure that you invest in the right markets going forward. Yeah. These are the things we're looking at now in addition to what we used to look at in the past. lastly, I'm gonna turn over to Margaret because we also measure our innovation and our growth. I mean, that's really important to us. We have a stage gate process. Margaret, maybe you could talk a little bit about that. Sure. Yeah. I talked in my prepared remarks about our innovation pipeline at 200 projects and how in 2021 we commercialized 30. The areas that we're focusing on, which are our customers' problems. Sustainability, e-commerce, supply chain complexity, item visibility. We're, you know, always looking at our innovative products. We look at them for about a span of three years, and we consider them innovations for that amount of time. Then they roll off and become part of our regular portfolio, but then we continually, you know, fill that funnel. You know, that's how we look at innovation revenue. Thanks, Margaret. Thank you, John Tumazos. John Tumazos Very Independent Research. Could you help us with how much the cost per ton rose over the last five quarters? I didn't calculate it with the segment. You're talking about with inflation, with our inflationary costs? Cost per ton, revenues on tons. Second, how much it would fall with the Panama City shutdown. Yeah. If you're buying coal for Panama City, spot coal doubled or tripled, so that probably was a big hit. I calculated for the containerboard segments of IP and PKG roughly 20% and 10%, where PKG's energy self-sufficient in black liquor. Yep. I compared 28 divisions of 15 companies, some in metals, where the average was 27%, and nine of them were 40%-64%, depending on how much energy they used. It can be crazy depending on energy efficiency. Yeah. I don't think we really share our cost per ton. We have shared the inflationary pressure that we've seen, whether it be energy, freight. Alex or Tom, I'll certainly open up to you what we share. What, Tom can talk specifically about some of your energy balance questions and some of the more technical details. Just from a, what we've communicated, since we began the cost increases at the end of last year, total cost inflation is in the zip code of $1.5 billion. I believe that number last quarter by memory is in the zip code of around $460 million on a year-over-year basis. That's sort of the aggregate number that we've shared, but maybe Tom, there were some technical questions in there. Yeah. To add to that, it would be difficult to come up with a gross number. I can share with you that we have a great amount of flexibility, fuel flexibility at most of our facilities. We have different levels of energy, electricity, self-sufficiency at our mills. Some are 100% and some of our smaller mills, we purchase 100%. We have fuel flexibility between black liquor at integrated mills, biomass, natural gas, and we balance between those. We optimize between those with that fuel flexibility as the markets change. We have the ability at some facilities to take coal out of the mix when we either can't get it or the pricing is unfavorable. Same thing with natural gas. We have great flexibility, and we optimize that on a daily basis. Okay. Question. Thanks. It's Cleve Rueckert from UBS. A couple questions from me. First of all, I'm just curious how you're thinking about M&A. You know, I appreciate it's tuck-in M&A, but. You know, if you could maybe help us with your prioritization, whether it's more of a geographic focus or a capability focus as you're seeing it today. Yeah, I'll talk briefly, then I'll turn over to Alex. When we look at our M&A opportunities, and we do have a full pipeline that we always manage, it's a couple things. It's strategic fit, is there a technology there? Is there a geographic piece that we're continuing to try to grow in within a specific technology? And is there a value proposition that we can leverage for our customers with that acquisition? It could also be part of our, if you know, we do continue to look at integration with the strong demand that we have to expand our capacity on the converting side. But there will always be an ROIC component to that. Alex, I don't know if you wanna make- Yeah. The way I might answer the question, we have a pretty balanced portfolio, and I think it's balanced across really three dimensions. One is assets that would get us into geographies that are attractive, where we have potential capacity limitations, and the market is attractive, and it increases our level of integration. Another would be a sort of a geography that we're under-penetrated in. The third would be sort of a technology area. You know, I think the technology thing is particularly exciting when you think about digital and some of the work that's going on there, where we you know, are willing to make more you know, very small investments that are almost like venture investments, and things to augment our R&D portfolio and really accelerate some of what Margaret talked about on digital. Great. I think that's very clear. Just to follow up on ROIC, you know, appreciate the 10% target. I don't have my model right in front of me. I'm not sure. Kinda be helpful to know where you stand on that today and how much of the improvement comes from just the margin improvement or if there are other things driving ROIC. Yeah. I mean, the direct answer to your question is, on a TTM basis, we were just under 8.5%, if you look at the last quarter trailing twelve months. That's fully loaded. That's with all the amortization and all those sorts of things, which tends to be one of the reasons why our ROIC can be lower than our peers. A lot of the improvement comes from margin. As you would imagine, we have a very large asset base, and so the denominator is slower and harder to manage. That being said, as we do these portfolio moves, you know, that does help address the ROIC calculation. We have, as we've talked about, a broad base number of our portfolio moves that will help the ROIC. Just to, again, give you an idea, for the total number, this is cash and capital, but the large portion of the number was capital for Panama City was $455 million. Again, the vast majority of that would've addressed some of the asset questions. Yeah. Yeah, that's clear. Thanks for that. Just last question from me. You know, this notion of a shift in kind of the strategic shift of thinking about the mills as cost centers versus profit centers and moving to kind of like a, you know, a pull process instead of a push process on the paper making side, that seems like a pretty significant strategic change. You know, I'm just wondering how if that's fully implemented, if that's something you're executing over time, and, you know, how much buy-in you have, you know? Yeah. You need to change the mindset sort of your teammates. Perfect. Thanks. I'll give you the reason why we did it, and I'm gonna have Tom talk about some of the benefits we're seeing. We are fully one mill system that is a cost center, is how we're operating today. We really believe that was important because what happens when you have a decentralized kind of operating system and each mill is a profit center, we may not be optimizing the network of the 31 mills. You may be making product that isn't as needed as other products and truly managing our inventory levels. The focus on what we want Tom to focus on is the cost, his controllable costs and just driving that efficiency. We don't want him worrying about his P&L or, you know, what's the selling? Should we go to the open market? What's the packaging business? We want him to drive his business. Tom, maybe you can talk about some of the benefits we're seeing from that. Sure. Just carry on with what David was sharing. We've fully transitioned to being a cost center, so that is in place today. There were great distractions with being a profit center, so you had the opportunity to suboptimize rather than optimize the whole system. You had the opportunity for folks to worry about their individual P&L. The way we run the system, especially the supply chain, is how it dovetails into our converting arms and sales arms, we centrally trim the paper mills and distribute orders, right? That is not a controllable of any of the mills. There was a distraction in the process and resources that were consumed by worrying about individual suboptimized P&Ls. Taking the sales input and the impact thereof away from the mills allows people to focus on what they need to be focusing on, and that's controllable costs, things that are in the, you know, within the confines of the facility. We've seen great benefits there because that distraction isn't there, and there were resources behind, you know, the back office systems in order to do all of those individual P&Ls. The P&Ls now go to my peers here with the business, and we focus exclusively on cost at the mills. Great. Thank you. Yeah, James, and then we'll go here, Rob. Good afternoon, everyone. Sorry. Adam Josephson, KeyBanc. Thank you very much for taking my questions. John, just a couple things for you. You mentioned the 2 million tons of flexible kraft paper, containerboard. We all know how big containerboard is, what its historical growth rate has been. Can you help me with how you size the kraft paper market? What the growth rate has been? Are the demand drivers different between the two markets? How big is grocery bags? And along those lines, how much of the shift do you think we've already seen from plastic to paper? What else is there going on within the kraft paper market? Just any more detail you can give me would be great. Yeah, sure. Thanks for the question. Kraft paper, we're roughly a 1 million ton system. You know, size that market, 3 million-4 million tons totally in North America. You know, much smaller than the overall container board market, to be sure. It's a growing market. I think we're in the early days. Alex mentioned the bag bans in what? Nine jurisdictions I think we've already seen. And more I think are in front of folks all the time. We think we're in early stages of just organic growth and demand for kraft bags. We're also seeing, you know, many of our customers looking for that as an alternative to plastic and other applications as well. We think that the kraft paper market is gonna continue to grow. We think it'll grow generally at, you know, levels a little above what we're seeing in the container board market. With the flexibility we have in the system, we think that gives us an opportunity to pivot to those markets and to help support the growth in that, in a really profitable way. I appreciate it. Just a couple other ones. Can you just talk a little more about what you're doing at Charleston, the shift toward more specialty products, and then also at Evadale, how much SBS are you making there now? I think you mentioned you're looking at opportunities to make more SBS. I don't know if it's Evadale or elsewhere, but just talk about the transition you're undergoing at Evadale and then where else you might wanna make SBS. I'll maybe I'll first answer your Charleston question. At Charleston, we make as I said earlier in my remarks, three primary grades. We make our kraft pack grade, which really is. That demand for that is growing as part of, again, plastic replacement. People are looking for solutions to take out food and other things, foam replacement, other things. That kraft pack grade is very popular and plays in that space. We're seeing a lot of great growth there. DuraSorb is a you know, saturated kraft plays basically in construction markets globally around the world. We export that product all over the world. It travels very well in this market environment. We're seeing you know, really uncorrelated demand growth for those products that's creating more need for that. As we look at a capability of our Charleston mill, its ability to make all those grades, we're figuring out what's the right mix of products we wanna make on those two paper machines to maximize the overall profitability and give us flexibility to play in those different channels. Evadale is a similar story, different product mix, but similar story in terms of flexibility. We can make container board at Evadale, we can make C and K now at Evadale, and we can make bleach grades, both uncoated and coated grades. We have a lot of flexibility there. You know, as we said, we switched E4 to primarily a liner board over the last year or so. As I mentioned in my prepared remarks, we've switched that back to some bleach grades to fill some incremental demand in food service packaging. We've seen, you know, as venues have reopened, as we're seeing the demand for plastic replacement, we're seeing more demand on the SBS side. We're evaluating how much of that we wanna play in, Adam. We really. You know, we're supporting our internal packaging needs right now with that containerboard out of Evadale, but we're evaluating the options. Again, we've got options all throughout the system to make linerboard at different places. Right now, we're making it at Evadale. If it turns out we can make, you know, better economic outcomes by making bleached there, we'll swing some of it back. On the other machine, PM2, we're making both C and K and bleached grades there. Right now, that machine's split about 50/50, making bleached and making C and K grades, supporting both our internal customers, Patrick's business primarily, but also our external customers. We like that mix right now, but again, we have a lot of optionality there, a lot of flexibility. As we see growth in our internal business, but also see demands from our external customers, we have optionality to move that weighting around. I appreciate it. David, just one for you, just on- Yeah. The free cash per share target and EBIT. The previous regime focused on free cash per share quite a bit, and obviously making acquisitions can go a long way toward helping one get there, and that's not what you're focused on. It seems like that target is perhaps somewhat misaligned with ROIC. I mean, if there are opportunities to divest more than you're thinking, that might come at the expense of EBITDA and/or free cash per share. How are you thinking about the compatibility of all those targets? Thank you. Yeah, thanks. I'll speak briefly, and I'll certainly turn it over to Alex. I don't wanna undersell how important we think free cash flow is. We think free cash flow is very important. That is a benefit that we've demonstrated over the past six-seven years that we can generate free cash flow, and that free cash flow gives us tremendous optionality. We truly believe we can continue with the free cash flow that we have. However, it's what you do with that cash. We've got to invest that cash where the best returns are. I guess I would say, you know, maybe before we took a little bit of a look as we just gave everybody a little bit of CapEx and kind of, as Alex likes to say, everyone at the table got fed. Now we've put pretty high thresholds for each business, and we're just going where the best returns are that meets our strategy, and we're holding the team accountable to hit those returns. We like the free cash flow that we generate. We continue with, you know, the flow-through that we're getting with the pricing. We continue to see the wonderful trend in free cash flow. Now we're just going to get a better return on where we spend that cash for our shareholders. Yeah. Just maybe a couple of additive points that I'd make, Adam. You bring up a good point, which I think is important to underscore. When we set our 2025 guidance, we did mention. David had said it explicitly. That does include contemplated portfolio actions. Obviously, when we shut Panama City, that had a negative impact on EBITDA. I would think about some of the lens on portfolio decisions as a quality of earnings question. Lower EBITDA, but higher EBITDA margin. Then the question becomes. How do you offset that EBITDA? Tom spoke at length about the work we're gonna make in basically improving productivity in the mill assets. I also pointed to $200 million-$500 million per annum of strategic investments that we'd be willing to make, all meeting the return thresholds that David outlined. I, you know, there's moving pieces on the chessboard, but I think what you generally see is an improvement in the quality of earnings. There is, you know, some lumpiness as we take poor quality EBITDA out of the system, reinvest in the system to basically replace that EBITDA. The last point that I was gonna make. Oh, I forgot it, but now it came back to me. Don't forget, there is a working capital opportunity. We pointed to the inventory opportunities being pretty significant. $300 million was the number that we used. There's actually an accounts receivable opportunity as well as we really drive efficiency in the back office. If you were to compare some of our working capital metrics versus our peers, it would compare unfavorably, and a lot of that is because of back office complexity as well as the work that Peter's doing. There is a working capital piece of it, as well. Thanks, Adam. Great. Oh, yeah, we'll go to Mark. Gabe Hajde, Wells Fargo. Yeah. Yep. Thanks, guys, for the presentation today. Kinda as we navigate from the outside world, this innovation and plastics replacement narrative, three-part question. How much does price or how often does price come into the conversation with your customers? Again, kinda asking in the context of, you know, what you mentioned in terms of one of the mega trends in terms of margin compression at the retailer level. Then, you know, if you've done the work, and presumably you have, you know, how often is the solution kind of at cost parity, maybe sometime instances where it's cheaper and/or more expensive. Then last part of that question is, how many of your solutions, as you sit today, require an investment on behalf of your customer to implement versus something they can run on existing equipment? Yeah. Three really good questions. I'll let Margaret start off, and then I'm sure I'll add to it. Right. We do make good margin on the sustainable solutions that we provide. In fact, I was just reading a study by IRI that said when they looked at some CPG products that were marketed as sustainable versus those that were not over a four-year period, the ones that were marketed as sustainable grew at three times the amount than the other ones did. There's an appetite in the market for customers to spend more. Our customers, it's a big decision for them. You know, they're not making it lightly, and they're also not in the U.S. making it as quickly maybe as you would see in the E.U., where there's much more regulation, and it's happening faster. We know it's moving here, but it is a journey. you know, when we think about our holistic solutions, not just the sustainable products, but adding, you know, primary, secondary, tertiary packaging, adding that packaging automation, that is truly differentiated. Not only are the sustainable products that we offer differentiated, but then the solutions are as well, and our customers are very willing to reward us for what we deliver. Gabe, maybe I'll just add a couple things. I've been in this type of a space my entire career. In the last year, I don't think I've ever seen the tipping point of where customers saying sustainability, we love it, but we're not gonna pay for it, which has always been, you know, my experience too. Now it's we love it, and it's hurting our brand. You've seen all of the social media now where brands are getting really, you know, negatively impacted when they show plastics in the ocean with their brand on it or whatever it may be. We are seeing a tipping point where customers are willing to pay for it. Now, having said that, they still wanna push us, say, "How do we make this cost neutral?" As Margaret said, that's the value of our machinery business 'cause then we can automate it. We are seeing a tipping point, and Patrick held up, you know, the CanCollar. This is what happens. One customer does it, and then what do you think happens? Our phone rings from five other customers saying, "We can't be the only ones that aren't doing it, so now we want a sustainable solution." You're starting to see that transition where customers are doing that. You know, as we roll out our sustainability report today, all customers now are really having a sustainability report. They need and want a sustainability story. They care about the environment, and we can help them achieve their goals. I think I've seen a tipping point over the last year. We're seeing it with our new innovation pipeline that we see. We try to help our customers make it cost neutral with all the innovation we can bring with combining maybe primary, secondary, tertiary with our automation to develop a complete solution, which is why I think we have an advantage in this space 'cause we have all of the substrates. I appreciate that. That was actually part of my next question, which was, you know, customers are clearly leaning into automation. One of your peers, different substrate, but is, you know, kind of pursuing a strategy that highlights the value of that. It's a little less clear, I think, to us on the outside world in terms of your equipment profitability. Yeah. If maybe you could speak to that. I think you said one machine in sales that represent 38%. Is there an internal target of where you think that could go? It's a really good question. I'm gonna actually have Patrick and even Nickie make a comment on it. If you look at, if I get this wrong, please let me know. On our containerboard side, 40% of our sales go through our own machinery. We are sold out on machinery. While we do make good money on machinery, that's not the purpose. The purpose is to grow our packaging business. We have multiple ways of working with our customers to implement our machinery to drive their growth and maybe help them offset costs and, you know, maybe we put the cost of the machinery in the product. We have boy, I wanna say we have 3,800 machines in the market. 3,500 machines. 3,500 machines in the marketplace today. Thank you, Nickie. Yeah. Nickie and Patrick, maybe talk a little bit how the customers that we're working with, how they're thinking about that. Yeah. One of the things that we can do is, you know, lightweight packaging and take cost out by doing some things like that. When you think about packaging material in the corrugated business, for every $1 of machinery, it pulls over time about $6 of packaging material. The focus really is continuing to pull that packaging material with our customers. Thanks. Patrick, I don't know if you have any comments. Yeah. Well, I held up the CanCollar example this morning, right? We look at it holistically. I mentioned the line speeds, the ability to flex or to customize certain things, right? David alluded to the forces that are in the market. One customer switches, the other one calls you up and wants to do the same. If it's a brewery, they could have, like, 20 different machines that need to go into that market quickly. This wouldn't have so much traction if we hadn't looked at it holistically because, yes, it removes plastics, but if it slows down the line speed at our customers, they won't gonna buy it. They will not buy it, right? We have a very good track record with also the craft breweries where the flexibility and the customization, they don't run the long lengths. They actually have the flexibility with our machines to actually go quickly and have a short run and move to the next. Our equipment is actually very flexible and customizable when you do these sort of things. That, looking at it holistically and solving more than just the material problem is actually worth a lot for our customers. Right? Yeah. Thank you. Hey. Anthony Pettinari from Citi. Hey. David, you know, understanding you don't report by geography, I was just wondering if you could talk kind of directionally about the return profile of the non-U.S. businesses versus the U.S. business? You know, maybe touch on Brazil. Yeah Europe, and Mexico. I'll kind of bounce around a little bit. If you look at Europe and Asia, obviously, we have no mills, so our returns are, you know, above our cost of capital. We're actually quite pleased with the growth and margin rates we're seeing in Europe. They support our global customers. I would say, right now in Asia, with COVID, there's a little bit of just 'cause of the shutdown situation. You know, not having these huge capital assets like a mill helps us with our returns and with the margin expansion we're seeing. We actually are getting returns higher than the cost of capital and good margins. I apologize, what was the second part of your question? Well, maybe if you could touch on Brazil and Mexico. Oh, Brazil. Yeah. Brazil, obviously, we do have a mill. I'll let Alex or Tom talk about this, but. Tom, I think you even had the ROIC on Três Barras on your- It's 30%. 30%. Wonderful investment. We're seeing margins above 30% in Brazil. It's a world-class asset. Those are the strategic investments that we wanna make to get those types of returns. Brazil's just been a wonderful investment for the company. Gondi, I don't know if there's anything you'd say about Gondi. Gondi is a very important partner for us. Obviously, we have a joint venture there. We own a little over 32%. We did have a call option last year, and it was at a fixed number that was determined five years previously. At that time, with our discipline around ROIC, it did not make sense for us to do that. We love the asset. It is a world-class asset. The people there are wonderful partners. The growth rate in Mexico is excellent. We're having wonderful discussions with Gondi about what our future holds, and we'll continue to update you as we look at that, but we really like the Mexican market. Yeah, sure. Thanks. George, Bank of America. Two questions, one more tactical or practical, and then one, a bigger picture one. In terms of addressing the growth and the total addressable market and the opportunities that you have, what changes do you need to make on the sales side? Is there anything from a training, from a tools, from an incentive standpoint that you need to do? Does that change much between, you know, corrugated and consumer? That's question number one. Yeah. You wanna handle that first? Sure, yeah. Thank you, George. I appreciate it. I'm actually gonna let, Corrugated Consumer talk about that, 'cause I love that question, 'cause commercial excellence, and how we manage. I think we talked about, you know, the pricing and value proposition methodology. Certainly let, Nickie, Patrick, and even John talk about our commercial This is definitely an area that's near and dear to my heart, spending a lot of time in the commercial roles. We have about 1,200 sellers across the organization, and there's really a focus to sell One WestRock and think about how do we really think about the entire portfolio that we can bring to our customers. When we're going in and talking about those things that are pressures that we're trying to solve for them, how do we bring the full set of solutions that we have across the whole organization? Just to your point, that's us doing things like making sure our teams are trained, that they have access to the resources they need, and that we can bring those right subject matter experts in to support those sellers and make sure we're bringing the best solutions for the customers, no matter what part of the business it's in. In certain parts of our business, the specialization matters, right? Selling to a healthcare customer is different than selling to a beverage customer, for example. We do need that specialization, but we have cross-training tools so that people bring in the right people. You don't always have to sell it yourself. You can bring in your peer that actually can do it on your behalf if you have that cross-selling opportunity. We incentivize our people for growth. You know, when we have new categories, such as the CanCollar, we have a specialized team around that will go first, and then it will just become more widespread in our organization as we are more successful rolling it out. Yeah. Basically, what I heard is it's mostly around training, but nonetheless, the incentives and everything else, that's more or less gonna stay the same. Tools and data management. Well- Pretty consistent or? Actually, we've completely changed all of our incentive compensation programs for our sales force over the last year and into this year. We are focusing on profitable growth. That is the key, profitable growth. It's not just volume, it's the right volume and the right growth. As you heard all of our leaders talk about, there are certain market segments that we are focused on where we get paid for our value. We do focus on some of those segments as well with some specialized sales force as we go through it. We have a dedicated commercial leader that just does training, how we get those tools and resources to our team. We compensate on what matches what we presented here today, and we continue to hold those teams accountable and reward them accordingly. Thanks, David. The other question I had, you know, again, thank you for the presentation. It was very deep. It was very broad. A lot of differences from what we saw in 2017. We have digital, we have more in sustainability, but there were some similarities, right? You know, MetaE is a focus for you. You talk about the cross-sell opportunities across the enterprise. You know, back then, there was a $4 billion goal for EBITDA. Yeah. Looking forward now, it's $4 billion+. When you look at that case study in history relative to the goal that you're committed to and you're very confident in, what gives you the confidence, and what were some of the pitfalls perhaps last time that prevented the company from getting there? Relatedly, WestRock really is different. It is a diverse paperboard business. It's unique. If you play it well, presumably, it is a differentiated strategy. Your peers are really more pure-play. Yep. Right? Does that differentiation, does that diversity, I should say, actually add complexity and actually wind up being a hurdle getting to your goals? Thanks for listening to that. Two good questions. George, in fairness to you, I'm actually gonna turn over the first part of your question. I wasn't here back in 2017. I can tell you my observations when I got here. Maybe from some of the earlier, whether it's Nickie, Patrick, or John, you can talk about the difference in shift and why things are different now versus the way they were. I mean, I'll start. Please. I mean, I think, first of all, some of the key things we talked about organizationally, even how we're reporting externally, the focus on one mill team, the focus on one, you know, paper team, our one consumer packaging team, the way we brought together our display business with our corrugated packaging business, none of that existed four years or 2017. That's all different. What Peter's doing with the integrated supply chain that's working across the entire business, that didn't exist in 2017. I think there's a lot of things that we've done in the last five years that are substantially different and that I think give us a runway to drive very different outcomes than what we were doing before. Yeah. I don't know, Patrick, Nickie, any other- The other thing I'd mention is the marketing team and our innovation team that have been pulled together to work across the businesses. I think that's been a really great way to support our commercial organization and really drive that engine of innovation in the market. Thank you for the plug. We have been pulled together, so now we're looking at One WestRock instead of just individual businesses. I also think the operating system is a big difference, just the way we run the business and the discipline and the rigor around that. I think that's a big difference. Yeah. Thank you. George, I apologize. What was the second part of your question? Well, I think. Pure play It's the portfolio question. Oh, the portfolio. Yeah, yeah. It's a really important point because quite frankly, I don't think we get enough credit for it, and I'm selfishly saying that. Because what I don't wanna do is be a me too. I mean, I can be a pure play in North America, but with the market dynamics that are happening today, with the flexibility we have in our mill footprint that John and Tom talked about, we reduce volatility because we're able to with the way we work now with our WestRock Operating System, we're looking multiple months in advance through not only our own internal packaging customers, but John's global merchant customers. We have a feel for what's happening with those market dynamics, and we can pivot and adjust and plan so we maximize value of this company. We love the diversification. We love going to a customer, saying, "We have every solution to solve your problem." Hey, look, if there is this massive inflationary environment that creates different spending habits where people aren't going out for food service, maybe now we can take more advantage in Patrick's business with center of the store and what we're doing there. With the e-commerce innovations that are going on, we can help take waste out and grow. If they do go to mailers, boy, that helps our kraft paper business. We love the flexibility, and I think we get, I'm just going to say this, unfairly dinged because of the broad portfolio. Now the way we're running the company, we think it's an unbelievable advantage. We think it's differentiated, and we think it reduces the volatility and gives you more assurances of our earnings. I feel strongly about that. We've been just going through this in a consumer business, right? If you compare a differentiated company that is very siloed to pure-play players, obviously there's a cost premium to it. If you specialize where it matters and have the ability to flex, as David just mentioned, on a very lean and efficient backbone, you don't have that duplication of cost anymore. All of a sudden, this differentiation is gonna make a massive difference. Yeah. Thank you very much. I think Mark's there. I do wanna say one thing on the portfolio. There are things that, you know, we do continue to look at to streamline to make sure they fit strategically. I do think that's a fair question. Yeah, Mark. I'm sorry. It's a little after 12:30 P.M. I think we have time for about one more question. Okay. Well, how about you wanna do two more, one on this side, one on that side? Let's do it. How about that? I don't know if this is too much of a softball or an unfair question. I love softballs. Bring it on. Bring it on. Actually, it's after George's question. It just had me thinking, this is one of the questions I was gonna ask. I mean, one of the things I think we've heard too, is that you're gonna focus on, you know, integrating everything that's been done and making, you know, WestRock what it can be to its fullest, whereas the prior team, I think there was a lot of M&A focus. The question is, for the folks who were there before, does that feel like that's gonna be very different, and it's going to create opportunities that you perhaps were not pursuing as you were more in growth mode? If that's fair. I'll turn over to the team. I'll start again. Maybe, Tom, I'll let you add from the mill perspective. I mean, I just think commercially, I mean, when you're doing big M&A, there's a lot of focus on integration, right? I mean, you're bringing in new people, you got new systems, you got new processes. It's one culture that you're trying to do. There's a lot of things going on. Not everybody knows each other. With our portfolio now, we've got a great portfolio. We've got a great set of assets, and we've got a great opportunity to optimize that set of assets. I think Tom talked about what he thinks he can do on the mill side, Peter on the supply chain side, us commercially. Our ability to think about, for example, optimizing Evadale, I mean, that's. In the old days, that was consumer and corrugated, and that was pretty hard to, "Well, I'm gonna run kraft liner." And they're like, "Well, hold on. This is a consumer mill. We'd really like you to do this." I mean, it's. Now that's not a problem. We just make those decisions, and we move on. I'd say, you know, focusing on what we've got, making it better. We feel like we have a tremendous amount of self-help opportunity, and that's what I think we're all focused on. Yeah. Two things. First, to add on to what John said, the organization really previously the segment structure that we had, it was difficult to optimize across the entire enterprise. There was always this silo there. The way we're organized right now, it is by definition easier for us to optimize across the organization. The Evadale example is a perfect one. That was completely siloed between consumer and corrugated before, and we suboptimized there and lost opportunity. The organization is a big benefit. The second is our investment strategy. We've talked a couple of times here about we are going to invest in the things that give us that ROIC over 10%. In the past, there was less of a connection from strategy to investment across the different segments and all the portfolios within the segments. It was somewhat more of a peanut butter approach. You've heard today we're gonna have directed investments towards the assets and the businesses that are gonna pay the highest dividends, and then the ones that are on the other end of that will get far less investment. I see a higher return coming out of our investment strategy and the way we're organized, definitely. High confidence. Great. Thanks, Mark. Mr. Wilde? Yeah, just two quick ones. First, on this margin, you know, you've got a competitor out there who already is well above 19%, a big competitor. So can you just talk about, you know, the spread between your 19% target and kind of where they're at already? And then the other thing I wanted to ask, both you and Alex is, down in Brazil, you've got some of the most productive forests in the world. You know, historically, the company always made the argument, we have to have the operating businesses together with the forest land. But the bid on those kinda assets right now would seem to be really, really strong. Do you still think that business needs to be vertically integrated? Alex, I'll let you talk about the margins first, and Tom, we can talk about our forestry in Brazil. Yeah. You know, obviously, I don't wanna compare our business model to a competitor. I think as we've articulated, we have a distinctly unique value proposition in the market, and I think, you know, we're gonna get compensated for that as we deliver that strategy. Also think pretty confidently there's upside from the number that we've provided. There are some structural differences. You have to keep in mind that you have a much larger mill network. And so we have that we have to work with. We also have a much higher level of OCC content, so we have that to work with. You know, we are addressing. There is no reason why I think the comparator you're making, there's no reason why we can't approach, you know, begin to approach those levels of margin performance as we improve the mix, you know, as we improve the operations, as we get the SG&A efficiency out. You know, some of this is a matter of time, and some of it's, you know, just a matter of business model differences. Yeah. I mean, I'll say this as elegantly as I can. If you just look at our last quarter and what our performance was on our margins, and even tie in, you can do the math with our consumer paper, merchant business. It was a phenomenal quarter that had wonderful margins that I think we've demonstrated how we can perform. I mean, what you measure us on is what we deliver, so we're gonna put in on what we deliver versus what we say. Just one thing to add on our forest group in Brazil, that is a competitive advantage for us. For many years, going back to the MeadWestvaco days, they've done bioengineering of the different species that they use. On the eucalyptus side, with the reconfiguration of the mill, the capital investment we just made, we've upped the amount of eucalyptus that the facility is using. That truly is a competitive advantage because we are making literally the strongest containerboard sheet that allows us to lightweight. John talked about how it's in demand. It is a competitive advantage for the people in the converting arms, whether it's our own plants, others in the, you know, in North there, countries in South America, or we ship some across to Europe. It's very high in demand, and a lot of that strength generates from the forest lands and the species that we've developed over time. That is not something we'd wanna let go of because that translates into a basis weight and a productivity and then, ultimately, a price and return, and that's a large part of it. Perfect. We've kept you a long time this morning. I thank you for your patience and listening to our story. We hope it was very worthwhile for you. At the very least, let us buy you lunch, which is in the other room. Just to let you know, we are splitting up into eight different tables. Please feel free to roam and talk to us. I'm gonna have each one of us say which table we'll be at, so if there's specific questions, you wanna ask any of our team members, please feel free to do so. I will be at table one. I'm at table eight. So Two. Four. Five. Six. It's either three or the other one that wasn't mentioned. Three or seven. We got three or seven right there. You're number two, you're number seven. I'm seven. Perfect. I got- I put him on the spot. That's what I do. Anyway, it's right back there, and we look forward to having some further conversations. Thank you very much. I didn't look.