Good morning, and welcome to the WestRock Fourth Fiscal Quarter 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the call over to Rob Quartaro, Senior Vice President of Investor Relations. Please go ahead. Good morning, and thank you for joining our Fourth Fiscal Quarter 2022 Earnings Call. We issued our press release this morning and posted the accompanying presentation to the investor relations section of our website. They can be accessed at ir.westrock.com or via a link on the application you're using to view this webcast. With me on today's call are WestRock's Chief Executive Officer, David Sewell, and our Chief Financial Officer, Alex Pease. Following our prepared comments, we will open the call for a question-and-answer session. During today's call, we will be making forward-looking statements involving our plans, expectations, projections, estimates, and beliefs related to future events. These statements involve a number of assumptions, risks, and uncertainties that could cause actual results to differ materially from those we discuss during the call. We describe these assumptions, risks, and uncertainties in our filings with the SEC, including our 10-K for fiscal year ended September thirtieth, 2021. We will also be referencing non-GAAP financial measures during the call. We have provided reconciliations of 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. With that, I'll now turn the call over to you, David. Thank you, Rob, and thank you all for joining our earnings call today. Fiscal 2022 was a tremendous year for WestRock. We achieved record financial results, realigned our segment reporting more in line with our long-term strategy, executed several portfolio optimization actions, initiated self-help cost improvements, and set the foundation for our transformation agenda. On our call today, I'll provide a review of our results, give an update on our transformation initiatives, and provide further details on our plastics replacement innovations. Following that, our CFO, Alex Pease, will provide a deep dive into the quarterly results for our segments and other performance. He'll also provide guidance for the fiscal first quarter and full year 2023. We will then move to Q&A to answer any questions you may have. In fiscal 2022, we set company records for net sales, consolidated adjusted EBITDA, and adjusted EPS. On a year-over-year basis, net sales increased 13% to $21.3 billion. Consolidated adjusted EBITDA increased 15% to $3.5 billion, and adjusted earnings per share increased 40% to $4.76. For the year, we generated $1.2 billion in adjusted free cash flow, and we reduced our net leverage to 2.05x as of September thirtieth, well within our stated target of 1.75x-2.25x. We also announced the planned acquisition of the remaining stake in Grupo Gondi, our joint venture in Mexico. For the 18 months through September thirtieth, we repurchased $722 million of WestRock's shares and increased our dividend by 25%. Just last month, we announced an additional 10% increase to our dividend. Looking ahead, the global economy faces several challenges, including elevated inflation, rising interest rates, energy shortages, supply chain disruptions, and geopolitical conflict. These challenges, along with continued inventory rebalancing, negatively impacted our business in the fiscal fourth quarter. Still, WestRock remains well-positioned to navigate the current environment. Our broad portfolio of paper and packaging products provides tremendous value to our customers. We are unique in our ability to provide primary, secondary, and tertiary packaging, as well as machinery that all work together to help our customers win in the marketplace. Our packaging solutions enable our customers to safely and reliably ship and market their products, and our machinery solutions enable customers to speed up production lines and reduce costs. Our innovations in plastics replacement are designed to help our customers achieve their sustainability targets and contribute to the circular economy. This is a long-term trend that we expect to continue. We have a stellar balance sheet, and we have generated over $1 billion in adjusted free cash flow for seven consecutive years. While we are not immune from macroeconomic challenges, we are well positioned for 2023 and beyond. Turning to our fourth quarter results on slide four. Thanks to the resolve and focus of our talented WestRock team members, we delivered solid results despite a challenging environment. Net sales increased 6% year-over-year to $5.4 billion, and consolidated adjusted EBITDA increased 5% to $920 million. Adjusted EPS was $1.43, an increase of 16% compared to the prior year quarter, and the company generated $268 million of adjusted free cash flow. Our corrugated packaging adjusted EBITDA margins, excluding trade sales, were 16.7%, as strong pricing and mix continued to more than offset headwinds, including cost inflation. Consumer packaging adjusted EBITDA margins were 16.8%, a decrease of 30 basis points year-over-year. We remain focused on implementing previously published price increases in our consumer business, which will continue into the first half of fiscal 2023. In our global paper business, we delivered a solid 21.4% adjusted EBITDA margin due to strong execution and a focus on margin over volume. As I previously noted, in October, we increased our dividend 10%, demonstrating confidence in our outlook and our commitment to a sustainable and growing dividend. As we look ahead, we plan to continue to use our strong free cash flow to invest in our business and return capital to our shareholders through our dividend and opportunistic share repurchases. We'll also continue to pursue attractive tuck-in acquisitions. While we have seen a slowdown in corrugated demand due to inventory destocking and the slowing economy, our consumer segment remains robust, demonstrating the value of our diverse portfolio to navigate the current challenges. In addition, we remain focused on our transformation initiatives and delivering on the fiscal 2025 goals that we outlined at our Investor Day. Turning to slide five. In fiscal 2022, we made significant progress on our portfolio optimization. We are continuing to rightsize our portfolio, focusing on core assets to increase and maximize return on invested capital. In July, we announced the planned purchase of the remaining stake in our Grupo Gondi joint venture. This strategic acquisition positions us to take advantage of onshoring trends and capture growth in the attractive Latin American market. The transaction remains on track and is expected to close in December 2022. We intend to use our $1 billion delayed draw term loan facility and existing liquidity to fund the transaction. As a reminder, Grupo Gondi's projected calendar year 2022 EBITDA is $200 million-$210 million, and we are targeting an additional $60 million in annual synergies by year three following the closing. In April, we announced the closure of our Panama City mill, and just last month, we announced the closure of our corrugated medium production in our St. Paul mill. These assets required significant capital investment to maintain and improve, and we did not see a path to achieving our return hurdles. The Panama City closure removed 353,000 tons of linerboard capacity and 292,000 tons of fluff pulp capacity, while the St. Paul closure removed 200,000 tons of corrugated medium capacity. As a result of the St. Paul closure, we expect to incur approximately $36 million of total costs and $24 million of cash costs. We recognized $15 million of total costs and $3 million of cash costs in the fourth quarter, and we expect to recognize the remainder in fiscal 2023. Our CRB machines in St. Paul remain competitive in the market and continue to operate. Lastly, we recently announced two divestitures, including our 65% stake in our RTS joint venture as well as three URB mills. With these sales, we will exit the non-strategic industrial URB businesses. Net proceeds from the sales will total $380 million combined, which we will use to maintain leverage within our target. These divestitures further demonstrate our commitment to portfolio optimization and our focus on driving return on invested capital. Turning to slide six. We continue to execute on our transformation initiatives to improve productivity and drive long-term profitability. Starting with our supply chain, we've begun piloting our distribution center optimization and inventory management initiatives in one of our markets. The initial pilot is yielding terrific results. We've identified $10 million in expected annual run rate savings. We believe these savings are scalable across our broader enterprise, and we continue to target $150 million-$200 million from our logistics and planning projects once fully implemented. We are also executing on our procurement initiatives and have identified approximately $45 million in estimated annual savings, and we expect more to come. We are executing additional SG&A savings, which we expect will deliver a net cost reduction of $40 million in fiscal 2023, and we are currently working toward $150 million-$200 million in productivity improvements in our mill system and converting operations. With our Panama City and St. Paul actions, we've reduced our North American corrugated mill costs by approximately $5 per ton. Taken together, we are targeting more than $250 million in net productivity and cost savings by the end of fiscal 2023. We are making significant progress on our 2025 targets, and we remain confident in the opportunities ahead. Moving to slide seven. The global trend toward plastics replacement remains an attractive long-term growth driver, supported by an estimated $9 billion total addressable market in North America and $50 billion globally. As well documented, consumers and governments continue to demand that companies support the environment and sustainability. Given our broad portfolio, the breadth of paper grades we offer, and our continued investment in product innovations, WestRock is well-positioned to continue capturing a growing share of the packaging market. As of today, we anticipate $345 million in annual run rate revenue from plastic replacements, and we are targeting to more than double that by the end of fiscal year 2025. Some of our notable plastic replacement solutions include CanCollar X, our sustainable large format canned beverage packaging, EverGrow, our paper-based produce punnets, EcoPush, our paper-based plastic tubes replacement, and Cluster-P ak packaging for multi-pack canned foods. Our complementary machinery also helps our customers automate their production lines and reduce labor costs. These are just a few of the solutions we have today, and we remain committed to offering a complete portfolio of recyclable, compostable, or reusable packaging by 2025. Looking ahead, we see tremendous opportunity for plastics replacement. Many of our customers have set aggressive goals to improve their packaging sustainability by 2025, and we are working hard and alongside them to reduce or replace plastics with fiber-based solutions. Our innovations in plastics replacement support continued revenue growth and contribute to the circular economy. I'll now turn over to Alex to discuss our segment results in more detail. Thanks, David. Moving to our consolidated quarterly results on slide eight. Fourth quarter net sales increased 6% year-over-year to $5.4 billion, and consolidated adjusted EBITDA increased 5% to $920 million. Consolidated adjusted EBITDA margin was 17%, down slightly year-over-year. Price and mix positively contributed approximately $687 million year-over-year. Continued inflation in energy, freight, labor, chemicals, and virgin fiber, along with other challenges, partially offset these benefits. Also, please note that consolidated adjusted EBITDA includes year-over-year insurance recoveries of approximately $26 million related to last year's ransomware. Turning to slide nine. Corrugated packaging segment sales, excluding trade sales, were $2.3 billion, an increase of $195 million or 9% year-over-year. Adjusted EBITDA increased $23 million or 6%. Adjusted EBITDA margin, excluding trade sales, declined 50 basis points year-over-year to 16.7%. During the quarter, North American shipments per day declined 4.6% as continued inventory rebalancing and softer demand drove weakness in several of our end markets. That said, we serve a broad range of customers, and several other end markets exhibited more resilient demand, including packaged food and beverage. During the quarter, we were focused on driving margin over volume. We also incurred economic downtime of approximately 288,000 tons as we sought to balance our supply with our customers' demand. Strong pricing and mix contributed $284 million, largely offset by $168 million of inflation, $77 million from higher operating costs, and $29 million from lower volumes. We continue to navigate a difficult inflationary environment driven by higher costs across energy, freight, labor, chemicals, and virgin fiber during the quarter. In the near- term, we will continue to actively manage our business for the current environment, and we will focus on balancing our production with our customers' demand. We continue to see significant opportunity to drive higher margins as we execute our transformation and deliver on our cost savings and productivity initiatives. We also remain excited about the long-term opportunity in Latin America. We're developing a new sheet plant in São Paulo State that we expect to open in early 2023. The new plant is expected to produce smaller runs and complex products to complement our Porto Feliz production. Our world-class assets in Brazil and our pending Grupo Gondi acquisition are expected to drive significant growth, enabling us to take advantage of onshoring trends in the fast-growing Latin American market. Turning to the consumer packaging business on slide ten. Segment sales increased $147 million or 13% year-over-year to $1.3 billion. Adjusted EBITDA increased $21 million or 11%, and adjusted EBITDA margin was 16.8%, a decrease of 30 basis points year-over-year. Strong price and mix contributed $126 million, while higher volumes added an additional $14 million. These benefits more than offset a negative impact of $84 million from inflation in energy, freight, labor, chemicals, and virgin fiber, as well as higher operating costs. Demand in our consumer business remains solid. During the quarter, we saw strength in beverage, retail, food, and healthcare, offset by softness in food service and home, beauty, and personal care. Our unique combination of corrugated and consumer packaging provides significant growth opportunities through the complementary packaging solutions we provide, additional cross-selling opportunities, and the trend towards plastics replacements. We continue to see solid demand trends, and we are focused on the execution of our strategy. Turning to slide 11. Global paper segment sales decreased $33 million or 2% year-over-year to $1.4 billion. Adjusted EBITDA was relatively flat while adjusted EBITDA margin increased 40 basis points to 21.4%. Strong price and mix contributed $247 million, more than offset by inflation of $144 million, volume of $97 million and higher operating costs of $13 million. As David mentioned, we focused on margin over volume in the quarter, which led to solid results in a difficult environment. We see great value in this business going forward and continue to leverage the flexibility and diversification it provides. Next, our distribution results are on slide 12. Our distribution business was strong, driven by execution and cost discipline. Segment sales increased 7% year-over-year to $374 million, and adjusted EBITDA grew 11% year-over-year. Strong price and mix contributed $44 million and lower operating costs contributed an additional $10 million. These benefits were largely offset by inflation of $47 million and lower volumes of $4 million. Turning to slide 13. We generated $268 million in adjusted free cash flow during the quarter. Fiscal year 2022 adjusted free cash flow was $1.2 billion, making this the seventh straight year delivering adjusted free cash flow above $1 billion. This represents an adjusted free cash flow conversion of 34% for the fiscal year. Our balance sheet remains strong, with net leverage at the end of the quarter at 2.05x, well within our targeted range of 1.75x-2.25x. Turning to slide 14 and our financial guidance for the quarter. As mentioned earlier, we have recently seen softer market conditions in our corrugated business and the external container board market, driven by continued inventory destocking and macroeconomic headwinds. However, our consumer business and the global paperboard market remain remarkably resilient. We continue to actively manage our business to balance our supply with our customers' demand as we navigate the current economic uncertainty. In this dynamic environment, WestRock is well positioned to benefit from its financial strength, diverse end market exposure, and the broad range of packaging solutions we provide. Our forecast for first quarter consolidated adjusted EBITDA is $625 million-$725 million, and adjusted earnings per share is between $0.45-$0.74. Some assumptions behind our sequential outlook include the following. First, favorable costs driven by two things. Natural gas down approximately 20% to $6.70 per MMBTU, and OCC down approximately 70% to $33 per ton. Second, unfavorable non-cash pension expense of approximately $40 million year-over-year due to higher interest rates and market volatility. Third, four less shipping days versus fiscal year of 2022 Q4. Fourth, an effective tax rate between 24% and 26%. Finallfy, approximately 257 million diluted shares outstanding. We are planning 150,000 tons of scheduled maintenance downtime across our system in the first quarter. Turning to slide 15. We expect continued strong price realization in fiscal year 2023. Our forecast for full year consolidated adjusted EBITDA is between $3.2 billion- $3.6 billion, and adjusted earnings per share is between $3.57 - $4.73. Notable items impacting our 2023 year-over-year guidance include the following. First, a contribution of approximately $85 million from the net impact of the pending sale of our RTS joint venture and URB mills, along with our Grupo Gondi acquisition in the fast-growing Latin America market. Our guidance also includes the closures of our Panama City mill and corrugated medium production in St. Paul. These benefits are partially offset by an unfavorable non-cash pension expense of approximately $160 million due to higher interest rates and market volatility. Finally, we have a $50 million unfavorable impact from foreign exchange rates. Despite the current macroeconomic challenges, we continue to deliver excellent operational performance. Our business remains well positioned, and we are laser focused on delivering strong results and executing on our transformation initiative. I'll now turn it over to David to conclude before we move to Q&A. Thanks, Alex. Fiscal 2022 was an incredible year for WestRock. We generated record results and laid a solid foundation for our transformation. While we expect a challenging environment in the near- term, we are actively managing our business and continuing to balance our supply with our customers' demand. We are well positioned to navigate the current challenges given our strong balance sheet, robust cash flows, and diverse revenue streams. We serve a broad range of resilient end markets, and we are uniquely positioned to serve our customers' changing packaging needs, including helping them achieve their sustainability goals. Only WestRock can provide a full breadth of sustainable packaging solutions, including automation, that all work together. Our innovation platform is robust, with over 225 active projects in the pipeline. As we look at fiscal 2023, we face a challenging environment to start the year. However, we have a resilient business model and a strong cash flow engine. We have laid a clear roadmap for long-term growth, and our transformation remains on track. We continue to see tremendous opportunity to unlock value from our portfolio through cross-selling, new packaging innovations, and executing our cost savings and productivity initiatives. Our future remains bright, and we look forward to providing additional updates as the year progresses. Thank you. With that, Rob, let's move to Q&A. Thank you, David. Operator, we're ready for questions. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If using a speakerphone, please pick up your handset before pressing the key. To withdraw from the question queue, please press star then two. Our first question will come from Mark Weintraub with Seaport. You may now go ahead. Good morning. On the portfolio condition, congrats on the new moves. I'm trying to understand where you might be now in the process relative to the Investor Day when you had signaled that there were gonna be a number of moves. Do we have more to come? Is there any color at this juncture that you could provide as to the magnitude of the types of moves that might yet to become if there are more to come? Yeah. Thanks, Mark, and good morning. Going back to our Investor Day, as you alluded to, we talked about a couple things, and I think we've demonstrated our direction over the last year with some of our portfolio moves. Our objective is to optimize our footprint and have a portfolio that aligns to our strategy that we laid out. If you think about our footprint and our desire to have a world-class mill network, world-class cost, and focus on high margin, high value markets, the moves we made have demonstrated that. We first look to try to invest like we did in Florence or down in Brazil or on a conversion site standpoint like our new converting plant in Longview. If the investment doesn't meet our ROI threshold to achieve what we want to achieve on those assets, then we look to make the tough decisions like St. Paul and Panama City. Then we also look to identify are there acquisitions that bolt on that help us grow in those markets or geographies where we wanna grow. That's where we added Gondi to our portfolio last year. This is something that's ongoing and continuous process. To answer your question more directly, I would say we will continue to look at our portfolio in an ongoing level that continues to optimize both our mill network and our growth aspects in the markets that we wanna grow in. I think you can just see us continuing to be very strategic in how we manage our portfolio. Okay, great. Just simplistically, I think you had at the Investor Day suggested when you were looking out a few years, there would be a negative impact to EBITDA from the portfolio moves. Far, given Grupo Gondi, it's actually positive. Might there have been a shift or, you know, it really just comes back to that there's still more stuff in the pipeline potentially? Well, we did not have Gondi at the Investor Day. If you think about Panama City and St. Paul, you know, at a full run rate, that is negative to EBITDA. If you look at RTS and our URB mills, that is negative to EBITDA. That's really what we built in. We will be opportunistic, as we said, on bolt-on M&As that are very strategic. We look more so at kinda how we were thinking about our footprint rationalization versus M&A, that you just don't know if it's gonna come to fruition until it does. Very helpful. I'll get back in queue. Thank you. Thanks, Mark. Our next question will come from George Staphos with Bank of America. You may now go ahead. Thanks. Hi, everyone. Good morning. Hope you can hear me okay. I want to go to. Good morning, George. Hey. Good morning, David. I wanna go to slide six, if you could, and just try to hit on a couple of topics related to operations. First of all, can you comment a bit on what, if any, reduction in cost productivity initiatives you have going on, specifically within the corrugated converting network? You know, any sort of reorganization, footprint efforts, et cetera, and where that would reside within the four or five figures you have there. Relatedly, if I understood the slide correctly, and correct me if I'm wrong, this year, within your overall guidance, I think the 3.2-3.6 you have inclusive in that $250 million of net cost savings. I wanna make sure if that's right. If you could tell us how those five items feed into that 250, that would be very helpful. Yeah. Sure, George. What I'll do is I'll give you kind of an overview of it, and I'll certainly have Alex add to it. As we laid out at our Investor Day, we are laser-focused on efficiencies, productivity, and self-help initiatives that we really believe we have to further integrate all of our acquisitions. That $250 million is our target for this year. If you look at our converting sites and specifically corrugated, which you highlighted, we have several initiatives that are underway and several that are already paying benefits and several that we fully expect to happen throughout the year. We have reorganized our corrugated business. We have a terrific leader leading that business. The way we're going to really look to run that business is when you think about all of our converting assets in corrugated, we're really gonna leverage. This is a pilot that I think Alex highlighted, but we're really going to leverage, you know, our scale and run these converting plants a little bit differently. We've done this in the Mid-west, and it's paying off terrific results. What that does is it's gonna allow us to manage production as opposed to at an individual plant level, it's going to be at a regional level, so we can optimize operations and production planning and transportation in a region where we have great density of converting plants. For example, in the Midwest, we have ten converting plants in a region. We're now looking at those as one entity to truly maximize our efficiencies, where we make the product, where we ship the product, how we support our customers, how we service our customers. We're seeing a lot of dollar benefits already. We plan to fully scale that out across North America. Those are just some of the pieces we're doing. There's also some low-hanging fruit on supply chain with corporate purchasing on both direct and indirect, fully leveraging our scale. We believe that this self-help is a better way to run our business and drive profitability. I'll certainly have Alex add to some other efforts that we have underway. Yeah. Thanks for the question, George. You know, what we wanted to highlight was a combination of things. First of all, the real progress we're gonna make in the next fiscal year, but also the traction we're making towards the commitments we made on Investor Day. Just to help sort of map it back to Investor Day, that $40 million that we mentioned in SG&A, that's an in-year savings number that's embedded in our productivity. The run rate for that number is around $100 million. You'll remember back to Investor Day, the commitment we laid out was $100 million in 2023, $150 million in 2024, and another $150 million in 2025. We're directly in line with what we committed to in Investor Day from an SG&A standpoint. The $150-$200 million in logistics and planning initiatives, David talked through the mechanics of that. That's largely related to the work that's ongoing in the Mid-west that we expect to scale across our entire footprint. Then the additional $45 million, again, that's an in-year number for the indirects. Again, because not all of that was in flight in the beginning of the year, the exit rate is much higher. Those are mapped, again, if you think back to our Investor Day, against the $500 million commitment that we made on the supply chain. Then this, you know, $150-$200 million maps against the commitments that we made in the combination of the mill and the operating network. You know, hopefully this, you know, gives some of the listeners a pretty high level of confidence in the progress we're making against the commitments we made towards the, you know, $1.5 billion of self-help. Sure. One quickie, I'll turn it over. I know others will probably ask you on inventories and volumes. Just one question more again on operations. At the Analyst Day, you talked about trying to become a little bit, I'm paraphrasing here, maybe paraphrasing poorly, but closer to the customer, having more of a local market approach. Yet at least outwardly, when you do more of a regional approach on converting, it would seem to be, at least again, to the outside observer, a little bit at odds with that. Tell me why that works well and why it'll be successful as you try to become more local market in your approach. Thanks, and good luck in the quarter. Yeah. No, thanks, George. I would say one thing that we learned is, the closest converting site wasn't always the converting site that was closest to the customer. You know, with all the acquisitions that happened, there was some historical and legacy aspects to that, so we're cleaning that up. The other piece is, when I say regional, you might be thinking of, you know, three, four, five states. I'm talking a very dense area that's very local, same-day delivery area. We're not going to change that. That's the aspect and the benefit of our scale. You know, if you have, you know, five or six converting sites within a, you know, six-hour range, that gives you a lot of flexibility. It also allows you to look at your converting site network and do things like Longview, where it's like, let's put one large facility next to the mill that's highly automated, low cost and allows us to maybe consolidate a couple other local locations. That's how we think about it. I don't want you to think we're getting farther from the customer. On the flip side of that, our commercial organization on the structure we're doing is purely to get even closer to the customer. You will see a commercial team that's very local and close to the customer, where we maybe in the past took a very national approach in some cases. This is going to allow us to get close to the customer and allow that assurance of supply and still maintaining local delivery. Thank you very much. I'll turn it over. Thanks, George. Our next question will come from Phil Ng with Jefferies. You may now go ahead. Hey guys. Your full year guidance and we appreciate you giving it, first of all, just given how visibility is pretty choppy out there. Based on the moves that you've made on portfolio side, you know, full year guide looks pretty reasonable. Your Q1 guide, even accounting for some of these moves, seems to be pretty outsized from a step-down standpoint. I don't believe you called out economic downtime in Q1. Can you give us a little color on what you're penciling in, and how should we think about the earnings cadence progressing through 2023? Yeah, I'll start, and then I'll turn it over to David to give a little bit more of the macro context. I think, you know, in line with what you've heard other commentary in the industry say, and you certainly heard in David's remarks, our first. You know, we're still working through the inventory rebalancing issues. You know, that's gonna drive some softness in the quarter. We expect that to really stabilize as we get towards the end of the calendar year or the end of our first fiscal quarter. We do expect our first fiscal quarter to be, you know, a bit weaker, given these inventory rebalancing issues, you know, prominently on the corrugated side of the business and you know, possibly on the global paper side of the business. As is always the case, we'll take actions to maximize our margin and to keep our internal supply in line with our customer demand. I think as you think about the cadence going through the year, the first quarter is likely to be the weakest. I'd also mention that there is inclusive in that guide a $40 million pension headwind. That's a non-cash headwind related to the increase in interest expense. You know, if you sort of add that back, you get to a modestly up year- over- year. Even with that, you're looking basically flat to last year. The last thing I'd mention is, you know, you do have maintenance downtime. Typically, the first quarter is our heaviest maintenance downtime quarter, and it's in line with the maintenance downtime that we guided to last year. You know, you asked the question specifically on economic downtime, and I think, for obvious reasons, we don't comment on how we're gonna manage our production. David, what would you add? I think, Phil, Alex captured it well. I would only add to it, maybe to your question on how we're thinking about it. You know, as we saw October, we saw that stabilized from September on the corrugated and containerboard side. As we look out to the future on our backlogs and, you know, the conversations we're having with customers, we do feel like as we get into second quarter, we will start to get back to a more normalized order rate from our customers as they work through that inventory and some of the softness that they have. We do feel like this first quarter will be more challenged on those sides of our business. On the flip side of that, we feel very, very good about our consumer business as well as our paperboard business within Global Paper. That's remained very resilient as we go through this cycle. We think we're really, with the points Alex made, with our Q1, when you look at the macroeconomic factors and you know, some of the commentary of the industry, we feel like this is a very strong quarter, as we ramp that back into a more normalized efforts in calendar year 2023. Super. Then a question for me on the cash flow. You guys obviously have an excellent track record in generating really steady and strong cash flow through a cycle. Any color on how we should think about in a choppier backdrop, how to think about CapEx? There's certainly some puts and takes on some of these growth ambitions and productivity ambitions. Certainly working capital could be a little elevated. Help us kind of think through how we should think about free cash flow in 2023, and then your willingness to deploy capital into this backdrop. I mean, you guys have certainly been pretty optimistic with buybacks. Kind of help us think through how we should think about cash flow next year and then your priorities in terms of capital deployment. I'll again start with just some of the more quantitative details, and then David can give some philosophical points on how we think about CapEx. We're sticking to the range that we've committed to during Investor Day. We have $900 million-$1 billion in sort of base CapEx, and then we give ourselves the flexibility to spend an additional $200-$500 million in strategic CapEx. The couple of examples that we look to specifically are the Hodge woodyard we've pointed to at different points in time. We pointed to the Longview Box Plant, which is continuing to develop and we're really excited about some of these. Obviously, we have a number of future strategic capital projects in the works. One of the real benefits of our model is the fact that we do generate such strong cash flow, and we can continue to invest in our business and grow our business. You know, we obviously continue to be committed to a sustainable and growing dividend. Over the last 12 months, we increased the dividend 25%, and I think you probably saw we just increased it another 10%, really demonstrating our confidence both in the business as well as the cash flow and our ability to sustain that dividend. You know, we're opportunistic on share buybacks. I think you see we've bought back more than $700 million of shares, and we'll continue to be opportunistic as market conditions support that. David talked a bit about our M&A and looking at M&A strategically. Certainly, as we've talked about, transformational M&A is probably off the table. They're definitely off the table. But incremental bolt-on technology adjacencies, you know, things like that are certainly things we evaluate on an ongoing basis. Obviously, we've got work ahead of us with the Gondi acquisition to integrate that and exceed our $60 million synergy target. But, you know, as that gets weaved into the portfolio, we'll continue to look at exciting opportunities to grow the business through bolt-ons. I would just add, Phil, that, you know, we do have authorization to purchase 29 million shares. We will be opportunistic as those opportunities come up. We think that's a good use of our cash. CapEx, we do fully anticipate to maintain the run rate we talked about. We think that's really important for our desire to have world-class assets and cost bases, and be close to our customers where we need to be in that regard as well. We fully anticipate to run down that path. The only caveat I would say is, you know, we're gonna manage our business if market conditions change dramatically. You know, who knows what happens in the Ukraine, geopolitical issues that are out there. I think the entire industry was maybe surprised a little bit about the sharp drop last quarter in the inventory rebalancing. You know, we're gonna continue to watch if there's anything that happens there with all of these macroeconomic issues. From everything we see, this is the direction that we're going, and we believe we've actually even taken a conservative look at how we see the year as well. Okay. Thank you. Really appreciate the call. Thanks. Our next question will come from Mark Wilde with BMO Capital Markets. You may now go ahead. Thanks. Good morning, David. Morning. I wondered, just to get started, can you give us a little bit more color on the big drop in outside paper and board sales? You know? Yeah. It looked like it was about 25%ish. Given that it was your highest margin segment in the quarter, just trying to understand exactly what you're doing there. Yeah. Mark, thanks for the question, 'cause I think it's an important one, because we're really running our paper business much differently than we have in the past and taking a very strategic outlook. The message I would give you is it's value over volume. We have very strategic partnerships that we have with customers. We are really the only ones that have the full array of products in our portfolio, whether it's substrates like SBS for containerboard, lightweight, heavyweight, so customers that truly value that and long-term relationships that we continue to have. Having said that, we're being very strategic in the market. Our biggest drop, to give specific answer to your question, in our global paper business, was in export containerboard. We saw a very significant drop in the fourth quarter in that regard. It was down, you know, mid-double- digits. As you talk to our customers around the world, you know, they were through the supply chain challenges throughout the year. They were buying as much, you know, containerboard as they could to make sure they had inventory because things were so tight. As things slowed down in the outside world, they had high inventory levels, and they are working those down. The good news on that is, with all the conversations we're seeing and some of the backlogs we're seeing, we expect them to start working through that by the end of this quarter. As we get into Q2, we expect that to come back. We did not chase volume in this scenario. We stuck with our high-value mantra. On the positive side of that, on export and kraft, it was actually up, and our paperboard sales were up double- digits. We love how we're managing the business and the fact that, you know, we saw even a margin increase through a challenging year. We feel like, you know, as we get through Q4 and Q1 here, which will be, we think, the bottom of the market, this just gives us great opportunity 'cause we've kept the relationships, we've kept our share, and we've been focusing on, you know, the high-value products to keep our margins. This is why we think this business really helps us manage our overall portfolio. Okay. That's really helpful. Just as one follow-on. From a capital deployment standpoint, David, I wondered if you could talk about, you know, any further thinking on repositioning the two biggest bleached board mills, the mill at Covington and the mill down at Evadale. I think you've been doing containerboard and some other things at Evadale, but I think, you know, Covington remains a great big question mark in my mind in terms of how you reposition that asset. Yeah. Thanks. All right. These are two, you know, terrific assets. Yeah. Especially for SBS, as you know. What's interesting, and I talked about our paperboard sales, you know, we're basically sold out on SBS. These mills are just tremendous assets. What we're talking about with customers, which is why we really like the breadth of our portfolio, we have a lot of customers, both domestically and export through Global Paper, that not only want SBS, but they want other products as well. We like having these breadth of portfolios to have true solutions for our customers that no one else can bring. We think that's a differentiator for us in the market. The only thing we really look at right now, similar to what we did at Evadale, is how do we continue to analyze flex manufacturing into other grades? Where can we flex from one grade to another grade depending on where we see growth in the market, especially in plastics replacement where SBS plays such a huge role, CNK plays a role. You know. We are looking at investments in those mills for more flex manufacturing capabilities to go to different substrates to make them more flexible. That's kind of how we think about it, because if you look at Evadale, where that is today versus, and you know that mill very well, Mark, where that mill was, you know, three years ago, it's really night and day, and that team's just done a tremendous job. Okay, that's helpful. I'll turn it over. Thanks, David. Thanks, Mark. Our next question will come from Mike Roxland with Truist Securities. You may now go ahead. Thanks, David. Alex, first question is can you give me a quick update on the work stoppage at Mahrt, where that stands now relative to a couple months ago? You know, the mill does represent over 90% of your CNK capacity, and we're also hearing about the potential for some other expired contracts at other mills. I'm just wondering how the company is addressing both Mahrt and potential other issues at other of your sites. Yeah, thanks, Mike. I mean, for obvious reasons, I don't think it's appropriate for me to comment on any labor negotiations other than to say, we are fully operating the Mahrt Mill. In fact, we're actually ahead of our planned contingency production rates at Mahrt, and there has been no impact in service to our customers. We hope to come to a resolution in the very near- term with our team. I really wanna thank the WestRock employees that are there for their great work in really continuing our operations seamlessly for our customers. In regards to the other negotiations, all of our other mills are on a master agreement. Mahrt is the outlier that's just not on that master agreement. We do have discussions coming with several other of our mills outside of the core economics of our master agreements, and you know it would not be appropriate for me to comment on those. Got you. I appreciate the color there, David. Just one quick follow-up on the consumer packaging. It looks like your margin contraction is sequentially despite higher pricing flowing through, despite moderating inputs, and also despite the fact that it seems like Mahrt is ahead of plan. Wondering if there's anything that impacted you in the quarter such that your margins declined sequentially. Yeah, that's a good catch, Mike. The answer is yes. We had some unscheduled downtime at our mill in Evadale. We also had large LIFO. If you take out the LIFO and the unscheduled downtime, it brought our margins into probably around the 17.3% range. Then if you add, you know, if you wanted to add paperboard sales through our global paper business, then that really brings it up to even higher, probably closer to 18%. Got you. Just one quick follow-up as we get here. I think last quarter you had 18% EBITDA margin. Is there anything? I think actually 18.5%, if I'm looking right now. It sounds like you would be still down sequentially in 4Q. Is that just a seasonality issue a little bit versus 3Q? I'm just wondering why. I mean, 'cause that was, you know, certainly a very impressive quarter last quarter. I wonder if there's anything else in addition to what you mentioned here that maybe a little bit weaker in this fourth quarter. No, you know. You know, when we looked at it, you're talking about for Q4, Mike? Yeah. The 16.8 versus the 18.5 you had in fiscal 3Q. Yeah, we had a terrific, really a terrific quarter in Q3 in margins. It was an all-time high. You know, we're running to a 20% margin target in consumer, and I think the team is doing all the right things there to make that happen. I would agree with you that, you know, there will be some fluctuation quarter- to- quarter because of product mix and seasonality. Really, if you just take out maybe the unscheduled downtime that we had with the LIFO hit that we took, and there's also FX in there with our European business, which is a nice piece of our business in consumer. There's nothing there that gives us any pause that we're gonna continue to grow this business. You know, the dollar volume growth was 7% in this business. We expect margins to continue. The backlog continues to be strong. This is a great aspect of our portfolio that's very resilient. Maybe, Mike, just to help point out the mix point. You know, we did see some incremental softness on the home beauty and health. I think we mentioned that in our prepared remarks. That tends to carry with it higher margins. You know, food and beverage actually offset that. As David mentioned, the overall volume growth was great at 7%. We continue to grow. There was a mix shift between those two primary segments. But again, that business continues to perform extremely well. We have continued strong price flow through, you know, great utilization, and obviously there's some seasonal fluctuations, but nothing really to be concerned about. Got it. Appreciate all the color and good luck in fiscal 2023. Thank you. Our next question will come from Kyle White with Deutsche Bank. You may now go ahead. Yeah, thank you. Good morning. Just going back to box shipments. Any early signs on how October looks and here into November? Are you seeing larger impacts on the inventory correction that you called out or are you seeing gradual improvement on that? Maybe able to give us a sense of what you're assuming in the quarterly guidance for shipments of fiscal one Q. Yeah. Kyle, if you look at our October shipment rates, they stabilized from where we came out in September. We do see that continuing through the quarter. We don't see it continuing to go negative. We do see it stabilizing kind of how we exited Q4. Having said that, when we talk to customers, when we look at the backlog, we are starting to see a little bit of an uptick for, you know, where we come in in Q2. That's what gives us confidence that we feel like as we get through this Q4, this was kind of the bottom of the trough. That's kind of the momentum we're seeing. On the consumer side, it continues to be strong to help offset that as well. As far as box shipments, yeah, I would say it's stable from how we exited Q4. You know, Kyle, the only other point I'd add is, and I mentioned this in my prepared remarks, we do have, you know, about 188,000 tons of planned downtime in the system. Seasonally, when you think about it, our fiscal Q1 tends to be a bit lighter. I think it, you know, would be logical to assume that our box shipments in Q1 continue to be a bit soft, strengthening towards the back half of the year. As David mentioned, it does feel as though it's stabilized quite a bit from where it was last couple of months. If I just follow up, are you guys breaking out what your September shipments were on a per day basis year over year? You mean September on its own? Yeah. Um, I- Basically the exit run rate that you're talking about. No, we've reported on a quarterly level. In North America, we were down 4.6%. Keep in mind, in Brazil, we were positive, low- single digits in box shipments. When you combine the Brazil business with the US business, our box shipments were only down about 4.1%. This is why we're so excited about Gondi, because now we'll have, you know, an even stronger presence in Latin America. Latin America is definitely growing faster than the United States. We feel like this fits extremely well into our strategy. I would say though that, you know, on a per day basis in the appendix of the prepared materials, we were in the 365 million sq ft per day range. That's, you know, in line with where we're trending currently. That's maybe a bit of a finer answer to your question. Yeah, I appreciate it. Then just a point of clarity on the outlook for the fiscal year outlook. I assume you're assuming flat pricing for all paper grades in that outlook. Then secondly, really appreciate the commodity cost sensitivity that you provide in the appendix. Are you assuming any kind of deflation on some of your commodities through the year on that fiscal outlook? Sure. Obviously, we're not gonna talk about forward pricing. We never do. I will say that included in our guidance is continued strong price flow through, based on the actions that we've taken this year, and we continue to assume that the price inflation mix holds. That's on sort of the pricing trend. As you know well, OCC has come down quite dramatically. It's at $33 a ton versus where it was a year ago. We expect that to creep up towards the back half of the year as that market gets to more normal conditions. Natural gas continues to be elevated. We expect that to mitigate. When you look at it all told, we do have, you know, a fairly significant inflation year-over-year, just under about, you know, call it $400 million. The vast majority of that is tied to wages, with around, you know, call it $25-$30 million tied to energy materials and freight. The good news is we do have, you know, the inflationary effects that we've seen over the course of the last year mitigating somewhat. We have to offset continued tightness in the labor market, but we do have, as we mentioned earlier in the call, $250 million of productivity baked in there. You know, we think our guidance, you know, just given one of the earlier comments on the level of sort of macroeconomic uncertainty, the situation in Ukraine and Europe going on, some of the inventory rebalancing that we've talked about. You know, we did take a you know, a very conservative approach to our guidance. To the extent, you know, the year begins to normalize more quickly than what we're anticipating, I think we'll hopefully be at the upper end of that range. Sounds good. Really appreciate all the details. I'll turn it over. Thanks, Kyle. Our next question will come from Adam Josephson with KeyBanc Capital Markets. You may now go ahead. David and Alex, good morning. Thanks very much for taking my questions. Alex, just one follow-up on that guidance question. You mentioned you're taking a very conservative approach to it. Can you talk about what your volume and price to commodity cost assumptions are within that range? Obviously, you gave us some year-over-year drivers on slide 15, I think it is. Anything you can tell us in terms of volume and price to commodity costs based on the flow through of the boxboard price increases from this past year? Also, why not? It doesn't seem like you gave free cash flow guidance as you normally do. Any reason for that? No reason for not giving free cash flow guidance. I will say that, you know, we do, as I mentioned, our ongoing assumption is that we have continued price flow through from the actions that we've taken this year. We do expect that the benefits of our pricing actions at least offset any inflationary effects. We do anticipate the inflationary effects mitigating over the course of the year. From a volume standpoint, I think for obvious reasons we're not gonna be explicit around our volume assumptions. We do have embedded in our guidance, as David mentioned, this continued inventory rebalancing effect. I think we do anticipate the bulk of that happening through our fiscal Q1 and stabilizing as we get into early fiscal Q2. If you think about the cadence of earnings through the year, you know, it's reasonable to expect Q1 to be quite light, and then that strengthening as we get towards the back half of the year. As you think about the portfolio and how the portfolio interacts together, I think it's reasonable to assume that the bulk of the weakness is probably split between the global paper business, predominantly in the export channel. You know, the continued challenges that we're seeing in containerboard offset by the strength that we're seeing in consumer, which I think highlights the benefits of having this diversified portfolio and some of the defensive characteristics of the consumer business relative to container business. I think that David, what did I miss? Well, Adam, I think the only other thing I'd say is, you know, if we start to, as we get to our next quarter and as anticipated, you know, the normalization comes back in corrugated, our containerboard business on the export side as well as domestic continues to get back to normal. We'll give an updated, you know, quarter-over-quarter guidance. With just the general macro uncertainty, you know, we wanna take approach, you know, this early to give a fiscal year guidance that's a reliable number that, you know, depending on, you know, no matter what happens with Ukraine or the geopolitical issues, you know, we came out with a guidance that was appropriate. No, I appreciate that, David. Just one last one for me on. You've mentioned plastic replacement many times on this call, and obviously some of your competitors have as well. One of your competitors announced a pretty major capacity addition, SBS capacity addition in the US this morning because of this plastic replacement theme. I was just wondering, I just think back to what happened in containerboard, whereby e-commerce got many companies excited, a lot of capacity came, and now there's an oversupply. I'm just wondering why, what you think the risk is that the same thing happens in the boxboard market because of enthusiasm about plastic replacement. In other words, how much capacity growth can this plastic replacement realistically accommodate, in your view? Thank you very much. Yeah. Thanks, Adam. It's an exciting time for the industry with plastics replacement because it's totally incremental to the total market that's here today. This is just new business. The pull that we're getting is just really exciting. If you think about the $9 billion market just in North America and the run rates that we have, we're currently at $345 million. We expect that and hope that to double by 2025. You think about our current backlogs and situation right now, you know, the markets have a way of balancing themselves out. We're continuing to invest in the substrates and grades that our customers want for plastics replacement. I think this is only going to grow in addition to the core markets of consumer. When you think about food and beverage, this is a market that's gonna continue to follow growth. Healthcare continues to grow for us. I think this is totally different than containerboard because this is a significant amount of new applications that are coming to market. Thank you, David. Thanks. This concludes our question and answer session. I would like to turn the conference back over to Rob Quartaro for closing remarks. Thank you, everybody, for joining our call today. As usual, we will be available for any follow-up questions that you have, and we look forward to updating you again next quarter. Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.