Business Wire | Nov 9, 2021 06:30AM EST

WestRock Reports Fiscal 2021 Fourth Quarter Results: Record Net Sales of $5.1 Billion Up 14%

Nov. 09, 2021

ATLANTA--(BUSINESS WIRE)--Nov. 09, 2021--WestRock Company (NYSE:WRK), a leading provider of differentiated, sustainable paper and packaging solutions, today announced results for its fiscal fourth quarter and year ended September 30, 2021.

Notable items in the fourth quarter include:

* Record net sales of $5.1 billion increased 14% compared to $4.5 billion in the prior year quarter * Net income of $324 million compared to a net loss of $1,156 million in the prior year quarter, which included a $1,314 million goodwill impairment net of tax * Adjusted Segment EBITDA of $878 million increased 22% compared to $721 million in the prior year quarter * Earned $1.20 per diluted share and $1.23 of Adjusted Earnings Per Diluted Share compared to a loss of $4.45 and adjusted earnings of $0.73, respectively, in the prior year quarter

Full Year 2021 Highlights:

* Record net sales of $18.7 billion increased 7% compared to $17.6 billion in the prior year * Net income of $838 million compared to a net loss of $691 million in the prior year * Adjusted Segment EBITDA of $3.0 billion increased 7% compared to $2.8 billion in the prior year * Earned $3.13 per diluted share and $3.39 of Adjusted Earnings Per Diluted Share compared to a loss of $2.67 and adjusted earnings of $2.75, respectively, in the prior year * Generated net cash provided by operating activities of $2.28 billion and record Adjusted Free Cash Flow of $1.49 billion; ended the year with a net leverage ratio of 2.38x

"The WestRock team delivered strong results in fiscal 2021, with record net sales and strong cash flows for the full fiscal year," said David B. Sewell, chief executive officer. "We executed on our capital allocation priorities, and I'm pleased to announce that we reached our target net leverage ratio in the quarter. In addition, we recently announced another increase to our dividend, which will result in a 25% increase since February. Looking forward, we believe we remain well positioned to successfully partner with our customers to meet their growing needs for sustainable, fiber-based packaging solutions."

Consolidated Financial Results

WestRock's performance for the three months ended September 30, 2021 and 2020 (in millions):

Three Months Ended Sep. 30, 2021 Sep. 30, 2020 Change Net sales $ 5,090.5 $ 4,471.5 $ 619.0

Segment income $ 526.4 $ 373.3 $ 153.1

Non-allocated expenses (3.8 ) (16.6 ) 12.8

Depreciation 269.4 258.9 10.5

Amortization 95.7 106.7 (11.0 )

Segment EBITDA 887.7 722.3 165.4

Adjustments ^(1) (9.8 ) (1.6 ) (8.2 )

Adjusted Segment EBITDA $ 877.9 $ 720.7 $ 157.2

^(1) See the Adjusted Net Income tables on page 11 for adjustments Operating Highlights for the Three Months Ended September 30, 2021 compared to September 30, 2020:

Net sales increased $619 million compared to the prior year quarter. Corrugated Packaging segment net sales increased $500 million and Consumer Packaging segment net sales increased $156 million. Segment income increased $153 million compared to the prior year quarter, with Corrugated Packaging segment income increasing $93 million and Consumer Packaging segment income increasing $60 million.

Additional information about the changes in segment net sales and income is included below.

Restructuring and Other Items

Restructuring and other items during the fourth quarter of fiscal 2021 was $12 million, primarily related to plant closure activities, including items such as impairment costs and certain lease terminations.

Net Cash Provided By Operating Activities and Other Financing and Investing Activities

Net cash provided by operating activities was $678 million in the fourth quarter of fiscal 2021 compared to $732 million in the prior year quarter. Total debt was $8.2 billion at September 30, 2021, or $8.0 billion excluding $192 million of unamortized fair market value step-up of debt acquired in mergers and acquisitions, and $7.7 billion after further excluding cash and cash equivalents of $291 million. During the fourth quarter of fiscal 2021, total debt declined by $479 million and Adjusted Net Debt declined by $215 million. The Company had approximately $3.7 billion of available liquidity under long-term committed credit facilities and cash and cash equivalents at September 30, 2021. During the fourth quarter of fiscal 2021, WestRock invested $310 million in capital expenditures, returned $122 million to stockholders through stock repurchases and paid $64 million in dividends to stockholders.

Segment Results

WestRock's segment performance for the three months ended September 30, 2021 and 2020 (in millions):

Corrugated Packaging Segment

Three Months Ended Sep. 30, 2021 Sep. 30, 2020 Change Segment net sales $ 3,398.7 $ 2,898.4 $ 500.3

Segment income $ 374.8 $ 281.9 $ 92.9

Depreciation 185.8 177.2 8.6

Amortization 45.8 57.2 (11.4 )

Segment EBITDA 606.4 516.3 90.1

Adjustments ^(1) (0.1 ) (2.9 ) 2.8

Adjusted Segment EBITDA $ 606.3 $ 513.4 $ 92.9

^(1) See the Adjusted Net Income tables on page 11 for adjustments Operating Highlights for the Three Months Ended September 30, 2021 compared to September 30, 2020:

Segment net sales increased $500 million, primarily due to higher selling price/mix, higher volumes and favorable impact of foreign currency. The Corrugated Packaging segment delivered a Segment EBITDA margin of 17.8% and a North American Adjusted Segment EBITDA margin of 19.0%.

Segment income increased $93 million, primarily due to the margin impact of higher selling price/mix and higher volumes that were partially offset by net cost inflation and other items.

Consumer Packaging Segment

Three Months Ended Sep. 30, 2021 Sep. 30, 2020 Change Segment net sales $ 1,783.0 $ 1,627.2 $ 155.8

Segment income $ 151.6 $ 91.4 $ 60.2

Depreciation 81.9 80.3 1.6

Amortization 49.9 49.5 0.4

Segment EBITDA 283.4 221.2 62.2

Adjustments ^(1) 0.5 1.3 (0.8 )

Adjusted Segment EBITDA $ 283.9 $ 222.5 $ 61.4

^(1) See Adjusted Net Income tables on page 11 for adjustments Operating Highlights for the Three Months Ended September 30, 2021 compared to September 30, 2020:

Segment net sales increased $156 million, primarily due to higher selling price/mix, higher volumes and favorable impact of foreign currency. The Consumer Packaging segment delivered Segment EBITDA and Adjusted Segment EBITDA margins of 15.9%.

Segment income increased $60 million, primarily due to the margin impact from higher selling price/mix, productivity improvements, lower economic downtime compared to the prior year period and higher volumes that were partially offset by net cost inflation and other items.

Conference Call

WestRock will host a conference call to discuss its results of operations for the fiscal fourth quarter ended September 30, 2021 and other topics that may be raised during the discussion at 8:30 a.m., Eastern Time, on Tuesday, November 9, 2021. The conference call, which will be webcast live, an accompanying slide presentation, and this release can be accessed at ir.westrock.com.

Investors who wish to participate in the webcast via teleconference should dial 888-330-2022 (inside the U.S.) or +1 646-960-0690 (outside the U.S.) at least 15 minutes prior to the start of the call and enter the passcode 8741412. Replays of the call can be accessed at ir.westrock.com.

About WestRock

WestRock (NYSE:WRK) partners with our customers to provide differentiated, sustainable paper and packaging solutions that help them win in the marketplace. WestRock's team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.

Cautionary Statements

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations, beliefs, plans or forecasts and are typically identified by words or phrases such as "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "prospects," "potential" and "forecast," and other words, terms and phrases of similar meaning. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. The Company cautions readers that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Such forward-looking statements include, but are not limited to, that we believe we remain well positioned to successfully partner with our customers to meet their growing needs for sustainable, fiber-based packaging solutions. With respect to these statements, the Company has made assumptions regarding, among other things, developments related to the COVID-19 pandemic, including the severity, magnitude and duration of the pandemic, negative global economic conditions arising from the pandemic, impacts of governments' responses to the pandemic on the Company's operations, impacts of the pandemic on commercial activity, the Company's customers and consumer preferences and demand, supply chain disruptions, and disruptions in the credit or financial markets; the results and impacts of acquisitions; economic, competitive and market conditions generally, including the impact of COVID-19; volumes and price levels of purchases by customers; competitive conditions in the Company's businesses and possible adverse actions of our customers, competitors and suppliers; labor costs; the amount and timing of capital expenditures, including installation costs, project development and implementation costs, and costs related to resolving disputes with third parties with which we work to manage and implement our capital projects; severance and other shutdown costs; restructuring costs; utilization of real property that is subject to the restructurings due to realizable values from the sale of such property; credit availability; and raw material and energy costs. The Company's businesses are subject to a number of risks that would affect any such forward-looking statements, including, among others, the level of demand for our products; our ability to respond effectively to the impact of COVID-19; our ability to successfully identify and make performance and productivity improvements; increases in energy, raw materials, shipping and capital equipment costs; reduced supply of raw materials; adverse legal, reputational and financial effects on the Company resulting from cyber incidents and the effectiveness of the Company's business continuity plans during a ransomware incident; fluctuations in selling prices and volumes; intense competition; the potential loss of certain customers; the scope, costs, timing and impact of any restructuring of our operations and corporate and tax structure; the occurrence of severe weather or a natural disaster or other unanticipated problems, such as labor difficulties, equipment failure or unscheduled maintenance and repair, which could result in operational disruptions, including those related to COVID-19; our desire or ability to continue to repurchase company stock; the scope, timing and outcome of any litigation, claims or other proceedings or dispute resolutions and the impact of any such litigation; and adverse changes in general market and industry conditions. Such risks and other factors that may impact management's assumptions are more particularly described in our filings with the Securities and Exchange Commission, including in Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The information contained herein speaks as of the date hereof and the Company does not have or undertake any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

WestRock CompanyCondensed Consolidated Statements of OperationsIn millions, except per share amounts (unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2021 2020 2021 2020

Net sales $ 5,090.5 $ 4,471.5 $ 18,746.1 $ 17,578.8

Cost of goods sold 4,092.6 3,658.1 15,315.8 14,381.6

Gross profit 997.9 813.4 3,430.3 3,197.2

Selling, general andadministrative, 432.2 390.0 1,759.3 1,624.4 excluding intangibleamortizationSelling, general andadministrative 87.8 99.0 357.1 400.5 intangibleamortizationLoss (gain) on 0.3 (10.4 ) 4.1 (16.3 )disposal of assetsMultiemployer pension (2.9 ) - (2.9 ) (1.1 )withdrawal incomeRestructuring and 11.7 56.5 31.5 112.7 other costsGoodwill impairment - 1,333.2 - 1,333.2

Operating profit 468.8 (1,054.9 ) 1,281.2 (256.2 )(loss)Interest expense, net (92.5 ) (110.3 ) (372.3 ) (393.5 )

Loss on extinguishment (8.6 ) (0.4 ) (9.7 ) (1.5 )of debtPension and other 33.5 24.9 134.9 103.3 postretirement non-service incomeOther (expense) (2.9 ) 19.1 10.9 9.5 income, netEquity in income of 11.5 7.1 40.9 15.8 unconsolidated entitiesIncome (loss) before 409.8 (1,114.5 ) 1,085.9 (522.6 )income taxesIncome tax expense (85.2 ) (40.0 ) (243.4 ) (163.5 )

Consolidated net 324.6 (1,154.5 ) 842.5 (686.1 )income (loss)Less: Net incomeattributable to (0.9 ) (1.5 ) (4.2 ) (4.8 )noncontrollinginterestsNet income (loss) $ 323.7 $ (1,156.0 ) $ 838.3 $ (690.9 )attributable to common stockholders Computation of diluted earnings per share under the two-class method (inmillions, except per share data): Net income (loss) $ 323.7 $ (1,156.0 ) $ 838.3 $ (690.9 )attributable to common stockholdersLess: Distributed andundistributed income (0.1 ) - (0.2 ) (0.1 )available to participatingsecuritiesDistributed andundistributed income $ 323.6 $ (1,156.0 ) $ 838.1 $ (691.0 )(loss) available tocommon stockholders Diluted weighted 268.9 260.0 267.5 259.2 average shares outstanding Diluted earnings $ 1.20 $ (4.45 ) $ 3.13 $ (2.67 )(loss) per shareWestRock CompanySegment InformationIn millions (unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2021 2020 2021 2020

Net sales: Corrugated Packaging $ 3,398.7 $ 2,898.4 $ 12,343.7 $ 11,419.2

Consumer Packaging 1,783.0 1,627.2 6,702.7 6,333.0

Land and Development - - - 18.9

Intersegment (91.2 ) (54.1 ) (300.3 ) (192.3 )EliminationsTotal net sales $ 5,090.5 $ 4,471.5 $ 18,746.1 $ 17,578.8

Income (loss) before income taxes: Corrugated Packaging $ 374.8 $ 281.9 $ 1,116.8 $ 1,037.7

Consumer Packaging 151.6 91.4 457.3 323.7

Land and Development - - - 1.4

Total segment income 526.4 373.3 1,574.1 1,362.8

Gain on sale of - 10.1 0.9 15.6 certain closed facilitiesMultiemployer pension 2.9 - 2.9 1.1 withdrawal incomeRestructuring and (11.7 ) (56.5 ) (31.5 ) (112.7 )other costsGoodwill impairment - (1,333.2 ) - (1,333.2 )

Non-allocated expenses (3.8 ) (16.6 ) (89.4 ) (70.7 )

Interest expense, net (92.5 ) (110.3 ) (372.3 ) (393.5 )

Loss on extinguishment (8.6 ) (0.4 ) (9.7 ) (1.5 )of debtOther (expense) (2.9 ) 19.1 10.9 9.5 income, netIncome (loss) before $ 409.8 $ (1,114.5 ) $ 1,085.9 $ (522.6 )income taxesWestRock CompanyCondensed Consolidated Statements of Cash FlowsIn millions (unaudited) Three Months Ended Twelve Months Ended September 30, September 30, 2021 2020 2021 2020

Cash flows from operating activities:Consolidated net income $ 324.6 $ (1,154.5 ) $ 842.5 $ (686.1 )(loss)Adjustments toreconcile consolidated net income to net cashprovidedby operating activities:Depreciation, depletion 365.1 365.6 1,460.0 1,487.0 and amortizationCost of real estate - - - 16.1 soldDeferred income tax 15.3 26.9 (38.3 ) 43.0 expense (benefit)Share-based 14.2 31.9 88.6 130.3 compensation expense401(k) match and 23.3 20.8 136.1 20.8 company contribution in common stockPension and otherpostretirement funding (28.9 ) (19.4 ) (111.5 ) (80.1 )more than expense(income)Cash surrender value (0.6 ) (11.0 ) (49.4 ) (25.2 )increase in excess of premiums paidGain on sale of sawmill - - (16.5 ) -

Gain on sale of - - (16.0 ) - investmentGoodwill impairment - 1,333.2 - 1,333.2

Other impairment 12.0 23.6 34.6 25.8 adjustments(Gain) loss on disposal (0.1 ) (7.7 ) 3.7 (13.2 )of plant and equipment and other, netOther, net (4.1 ) 5.1 (29.2 ) (15.2 )

Changes in operatingassets and liabilities, net of acquisitions /divestitures:Accounts receivable (95.5 ) (51.9 ) (428.9 ) 30.5

Inventories (69.2 ) 92.5 (200.0 ) 21.8

Other assets (229.9 ) (104.1 ) (379.6 ) (202.4 )

Accounts payable 233.1 153.7 430.3 (86.4 )

Income taxes (69.3 ) (43.3 ) 0.7 (27.6 )

Accrued liabilities and 187.5 70.3 552.8 98.4 otherNet cash provided by 677.5 731.7 2,279.9 2,070.7 operating activities Investing activities: Capital expenditures (310.1 ) (117.9 ) (815.5 ) (978.1 )

Proceeds from corporate 18.3 7.2 44.9 16.9 owned life insuranceProceeds from sale of - - 58.5 - sawmillProceeds from sale of - - 29.5 - investmentsProceeds from sale of 2.0 12.5 6.3 35.0 property, plant and equipmentProceeds from property, 1.5 4.1 3.2 6.5 plant and equipment insurance settlementOther, net (2.2 ) (2.0 ) (2.9 ) (1.8 )

Net cash used for (290.5 ) (96.1 ) (676.0 ) (921.5 )investing activities Financing activities: Proceeds from issuance - - - 598.6 of notesAdditions to revolving - 15.0 435.0 428.0 credit facilitiesRepayments of revolving (60.0 ) (50.0 ) (415.0 ) (528.2 )credit facilitiesAdditions to debt 1.8 13.3 259.9 696.4

Repayments of debt (412.8 ) (253.4 ) (1,544.3 ) (1,449.2 )

Repayments of - (329.9 ) - (339.2 )commercial paper, netOther debt additions 6.8 (11.1 ) 23.1 (80.3 )(repayments), netIssuances of common 3.5 5.5 18.2 22.2 stock, net of related tax withholdingsPurchases of common (122.4 ) - (122.4 ) - stockCash dividends paid to (64.0 ) (51.9 ) (233.8 ) (344.5 )stockholdersOther, net 8.0 (6.5 ) (1.1 ) (24.9 )

Net cash used for (639.1 ) (669.0 ) (1,580.4 ) (1,021.1 )financing activitiesEffect of exchange rate (6.8 ) (7.0 ) 16.3 (28.6 )changes on cash and cash equivalents(Decrease) increase incash and cash (258.9 ) (40.4 ) 39.8 99.5 equivalents andrestricted cashCash and cashequivalents, and 549.8 291.5 251.1 151.6 restricted cash atbeginning of periodCash and cashequivalents, and $ 290.9 $ 251.1 $ 290.9 $ 251.1 restricted cash at endof period Supplemental disclosureof cash flow information: Cash paid during the period for:Income taxes, net of $ 131.3 $ 56.3 $ 271.9 $ 147.2 refundsInterest, net of $ 137.8 $ 142.4 $ 384.7 $ 423.4 amounts capitalizedWestRock CompanyCondensed Consolidated Balance SheetsIn millions (unaudited) September September 30, 30, 2021 2020

Assets Current assets: Cash and cash equivalents $ 290.9 $ 251.1

Accounts receivable (net of allowances of $68.1 2,586.9 2,142.7and $66.3)Inventories 2,173.3 2,023.4

Other current assets 597.6 520.5

Assets held for sale 10.9 7.0

Total current assets 5,659.6 4,944.7

Property, plant and equipment, net 10,570.1 10,778.9

Goodwill 5,959.2 5,962.2

Intangibles, net 3,318.8 3,667.2

Restricted assets held by special purpose entities 1,260.5 1,267.5

Prepaid pension asset 674.3 368.7

Other assets 1,811.8 1,790.5

Total Assets $ 29,254.3 $ 28,779.7

Liabilities and Equity Current liabilities: Current portion of debt $ 168.8 $ 222.9

Accounts payable 2,123.7 1,674.2

Accrued compensation and benefits 656.8 386.7

Other current liabilities 694.8 645.1

Total current liabilities 3,644.1 2,928.9

Long-term debt due after one year 8,025.3 9,207.7

Pension liabilities, net of current portion 254.7 305.2

Postretirement medical liabilities, net of current 133.7 145.4portionNon-recourse liabilities held by special purpose 1,127.3 1,136.5entitiesDeferred income taxes 2,944.4 2,916.9

Other long-term liabilities 1,433.1 1,490.3

Redeemable noncontrolling interests 1.7 1.3

Total stockholders' equity 11,670.3 10,630.6

Noncontrolling interests 19.7 16.9

Total Equity 11,690.0 10,647.5

Total Liabilities and Equity $ 29,254.3 $ 28,779.7

Non-GAAP Financial Measures and Reconciliations

WestRock reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide WestRock's board of directors, investors, potential investors, securities analysts and others with additional meaningful financial information that should be considered when assessing our ongoing performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in evaluating WestRock's performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, WestRock's GAAP results. The non-GAAP financial measures we present may differ from similarly captioned measures presented by other companies. We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Adjusted Segment EBITDA and Adjustments to Segment EBITDA

WestRock uses the non-GAAP financial measure "Adjusted Segment EBITDA", along with other factors, to evaluate our segment performance. Management believes adjusting "Segment EBITDA" for certain items provides WestRock's board of directors, investors, potential investors, securities analysts and others with useful information to evaluate WestRock's performance across periods or relative to our peers, and that adjusting "Segment EBITDA" to "Adjusted Segment EBITDA" more closely aligns those results to the adjustments in Adjusted Net Income that relate to "Segment EBITDA". The consolidated financial results and segment tables include a reconciliation of "Adjusted Segment EBITDA" to "Segment EBITDA" by adding certain "Adjustments" to "Segment EBITDA". These "Adjustments" are reflected in the "Adjusted Net Income" reconciliation tables below.

Adjusted Segment Sales and Adjusted Segment EBITDA Margins

With respect to Adjusted Segment Sales, management believes that adjusting Segment Sales for trade sales is consistent with how peers present their sales for purposes of computing margins and helps WestRock's board of directors, investors, potential investors, securities analysts and others compare companies in the same peer group. WestRock uses the non-GAAP financial measure "Adjusted Segment EBITDA Margins", along with other factors, to evaluate our segment performance against our peers. Management believes this measure is also useful to investors to evaluate WestRock's performance relative to its peers. "Segment EBITDA Margin" is calculated for each segment by dividing that segment's Segment EBITDA by Segment sales. "Adjusted Segment EBITDA Margin" is calculated for each segment by dividing that segment's Adjusted Segment EBITDA by Adjusted Segment Sales.

Adjusted Net Income, Adjusted Earnings Per Diluted Share

WestRock uses the non-GAAP financial measures "Adjusted Net Income" and "Adjusted Earnings Per Diluted Share". Management believes these measures provide WestRock's board of directors, investors, potential investors, securities analysts and others with useful information to evaluate WestRock's performance because they exclude restructuring and other costs and other specific items that management believes are not indicative of the ongoing operating results of the business. WestRock and its board of directors use this information to evaluate WestRock's performance relative to other periods. WestRock believes that the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Earnings Per Diluted Share are Net income (loss) attributable to common stockholders, represented in the table below as the as reported results for Consolidated net income (loss) (i.e. Net of Tax) less net income attributable to Noncontrolling interests, and Earnings (loss) per diluted share, respectively. This release includes a reconciliation of Earnings (loss) per diluted share to Adjusted Earnings Per Diluted Share and reconciliations of Adjusted net income to Net income (loss) attributable to common stockholders for the periods indicated (in millions).

Reconciliations of Net Income (Loss) to Adjusted Segment EBITDA

Three Months Ended Twelve Months Ended September 30, September 30, 2021 2020 2021 2020

Net Income (loss) $ 323.7 $ (1,156.0 ) $ 838.3 $ (690.9 )attributable to common stockholdersAdjustments: ^(1) Less: Net Income 0.9 1.5 4.2 4.8 attributable to noncontrolling interestsIncome tax expense 85.2 40.0 243.4 163.5

Other expense (income), 2.9 (19.1 ) (10.9 ) (9.5 )netLoss on extinguishment of 8.6 0.4 9.7 1.5 debtInterest expense, net 92.5 110.3 372.3 393.5

Restructuring and other 11.7 56.5 31.5 112.7 costsGoodwill impairment - 1,333.2 - 1,333.2

Multiemployer pension (2.9 ) - (2.9 ) (1.1 )withdrawal incomeGain on sale of certain - (10.1 ) (0.9 ) (15.6 )closed facilitiesNon-allocated expenses 3.8 16.6 89.4 70.7

Segment Income 526.4 373.3 1,574.1 1,362.8

Non-allocated expenses (3.8 ) (16.6 ) (89.4 ) (70.7 )

Depreciation and 365.1 365.6 1,460.0 1,487.0 amortizationSegment EBITDA 887.7 722.3 2,944.7 2,779.1

Adjustments ^(2) (9.8 ) (1.6 ) 54.5 33.1

Adjusted Segment EBITDA $ 877.9 $ 720.7 $ 2,999.2 $ 2,812.2

^(1) Schedule adds back expense or subtracts income for certain financialstatement and segmentfootnote items to compute segment income, Segment EBITDA and Adjusted SegmentEBITDA.^(2) See the Adjusted Net Income tables on page 11 and 12 for adjustments. Reconciliations to Adjusted Net Income

Three Months Ended September 30, 2021 Adjustments to Segment EBITDA Consolidated Results Corrugated Consumer Other Pre-Tax Tax Net of Packaging Packaging TaxAs reported ^(1) $ 409.8 $ (85.2) $ 324.6

Restructuring n/a n/a n/a 11.7 (2.9) 8.8and other itemsLoss on n/a n/a n/a 8.6 (2.1) 6.5extinguishment of debtLosses at closedplants, (0.1) 0.5 - 0.4 - 0.4transition and start-up costs^(2)Ransomware - - (10.2) (10.2) 2.4 (7.8)insurance proceedsAdjustments / $ (0.1) $ 0.5 $ (10.2) $ 420.3 $ (87.8) $ 332.5Adjusted ResultsNoncontrolling (0.9)interestsAdjusted Net $ 331.6Income ^(1) The as reported results for Pre-Tax, Tax and Net of Tax are equivalent tothe line items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, asreported on the statements of operations.^(2) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA, if any, is depreciation and amortization.Three Months Ended September 30, 2020Adjustments to Segment EBITDAConsolidated ResultsCorrugatedPackagingConsumerPackagingOtherPre-TaxTaxNet of TaxGAAP Results (1)$

(1,114.5)

$

(40.0)

$

(1,154.5)

Goodwill impairmentn/a

n/a

n/a

1,333.2

(18.9)

1,314.3

Restructuring and other itemsn/a

n/a

n/a

56.5

(14.2)

42.3

MEPP liability adjustment due to interest ratesn/a

n/a

n/a

14.1

(3.5)

10.6

Losses at closed plants, transition and start-up costs (2)1.1

1.3

-

2.8

(0.6)

2.2

Loss on extinguishment of debtn/a

n/a

n/a

0.4

(0.1)

0.3

Accelerated depreciation on major capital projectsand certain plant closures (2)n/a

n/a

n/a

0.2

-

0.2

Litigation recoveryn/a

n/a

n/a

(12.4)

3.1

(9.3)

Gain on sale of certain closed facilitiesn/a

n/a

n/a

(10.1)

2.5

(7.6)

Brazil indirect tax (3)(4.0)

-

-

(6.9)

1.8

(5.1)

Other-

-

-

(0.1)

0.1

-

Adjustments/ Adjusted Results$

(2.9)

$

1.3

$

-

$

263.2

$

(69.8)

$

193.4

Noncontrolling interests(1.5)

Adjusted Net Income$

191.9

(1) The GAAP results for Pre-Tax, Tax and Net of Tax are equivalent to the line items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, as reported on the statements of operations.(2) The variance between the Pre-Tax column and the sum of the Adjustments to Segment EBITDA is depreciation and amortization.(3) The variance between the Pre-Tax column and the sum of the Adjustments to Segment EBITDA is primarily interest income. Three Months Ended September 30, 2020 Adjustments to Segment Consolidated Results EBITDA Corrugated Consumer Other Pre-Tax Tax Net of Tax Packaging PackagingGAAP Results ^ $ (1,114.5) $ (40.0) $ (1,154.5)(1)Goodwill n/a n/a n/a 1,333.2 (18.9) 1,314.3impairmentRestructuring n/a n/a n/a 56.5 (14.2) 42.3and other itemsMEPP liabilityadjustment due n/a n/a n/a 14.1 (3.5) 10.6to interestratesLosses atclosed plants, 1.1 1.3 - 2.8 (0.6) 2.2transition and start-up costs^ (2)Loss on n/a n/a n/a 0.4 (0.1) 0.3extinguishment of debtAccelerateddepreciationon major capitalprojectsand certain n/a n/a n/a 0.2 - 0.2plant closures ^ (2)Litigation n/a n/a n/a (12.4) 3.1 (9.3)recoveryGain on saleof certain n/a n/a n/a (10.1) 2.5 (7.6)closedfacilitiesBrazil (4.0) - - (6.9) 1.8 (5.1)indirect tax^ (3)Other - - - (0.1) 0.1 -

Adjustments/ $ (2.9) $ 1.3 $ - $ 263.2 $ (69.8) $ 193.4Adjusted ResultsNoncontrolling (1.5)interestsAdjusted Net $ 191.9Income ^(1) The GAAP results for Pre-Tax, Tax and Net of Tax are equivalent to theline items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, asreported on the statements of operations.^(2) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA is depreciation and amortization.^(3) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA is primarily interest income. Twelve Months Ended September 30, 2021 Adjustments to Segment EBITDA Consolidated Results Corrugated Consumer Other Pre-Tax Tax Net of Packaging Packaging TaxGAAP Results ^ $ 1,085.9 $ (243.4) $ 842.5(1)Restructuring n/a n/a n/a 31.5 (7.7) 23.8and other itemsCOVID-19 11.3 9.9 0.8 22.0 (5.4) 16.6employee paymentsGrupo Gondi n/a n/a n/a 22.5 (6.7) 15.8optionRansomwarerecovery costs, 4.1 1.7 13.1 18.9 (4.7) 14.2net of insuranceproceedsAccelerated n/a n/a 11.7 11.7 - 11.7compensation - former CEOLoss on n/a n/a n/a 9.7 (2.4) 7.3extinguishment of debtLosses atclosed plants, 0.7 1.8 - 3.0 (0.6) 2.4transition and start-up costs^(2)Accelerateddepreciation on major capitalprojectsand certain n/a n/a n/a 0.7 (0.2) 0.5plant closures^ (2)Gain on sale of n/a n/a n/a (16.0) 2.4 (13.6)investmentGain on sale of n/a n/a n/a (16.5) 8.3 (8.2)sawmillGain on sale of n/a n/a n/a (0.9) 0.2 (0.7)certain closed facilitiesBrazil indirect (0.6) - - (0.9) 0.3 (0.6)tax claim^ (3)MEPP liabilityadjustment due n/a n/a n/a (0.4) 0.1 (0.3)to interestratesAdjustments/ $ 15.5 $ 13.4 $ 25.6 $ 1,171.2 $ (259.8) $ 911.4Adjusted ResultsNoncontrolling (4.2)interestsAdjusted Net $ 907.2Income ^(1) The GAAP results for Pre-Tax, Tax and Net of Tax are equivalent to theline items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, asreported on the statements of operations.^(2) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA, if any, is depreciation and amortization.^(3) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA is primarily interest income.Twelve Months Ended September 30, 2020Adjustments to Segment EBITDAConsolidated ResultsCorrugatedPackagingConsumerPackagingL&D andOtherPre-Tax

Tax

Net of Tax

GAAP Results (1)$

(522.6)

$

(163.5)

$

(686.1)

Goodwill impairmentn/a

n/a

n/a

1,333.2

(18.9)

1,314.3

Restructuring and other itemsn/a

n/a

n/a

112.7

(28.2)

84.5

North Charleston and Florence transition and reconfigurationcosts (2)38.6

-

-

43.4

(10.6)

32.8

COVID-19 employee payments16.5

15.1

-

31.6

(7.7)

23.9

Losses at closed plants, transition and start-up costs (2)14.1

5.6

-

21.9

(5.4)

16.5

Accelerated depreciation on major capital projectsand certain plant closures (2)n/a

n/a

n/a

17.3

(4.2)

13.1

MEPP liability adjustment due to interest ratesn/a

n/a

n/a

15.0

(3.7)

11.3

Loss on extinguishment of debtn/a

n/a

n/a

1.5

(0.4)

1.1

Multiemployer pension withdrawal expensen/a

n/a

n/a

0.9

(0.2)

0.7

Brazil indirect tax claim (3)(29.7)

(2.0)

-

(51.9)

16.0

(35.9)

Litigation recovery(7.2)

(4.3)

n/a

(23.9)

5.9

(18.0)

Adjustment related to Tax Cuts and Jobs Actn/a

n/a

n/a

-

(16.4)

(16.4)

Direct recoveries from Hurricane Michael, net of related costs(16.1)

n/a

n/a

(16.1)

4.0

(12.1)

Gain on sale of certain closed facilitiesn/a

n/a

n/a

(15.6)

3.8

(11.8)

Land and Development operating resultsn/a

n/a

(1.4)

(1.3)

0.3

(1.0)

Other-

3.9

-

6.0

(1.5)

4.5

Adjustments/ Adjusted Results$

16.2

$

18.3

$

(1.4)

$

952.1

$

(230.7)

$

721.4

Noncontrolling interests(4.8)

Adjusted Net Income$

716.6

(1) The GAAP results for Pre-Tax, Tax and Net of Tax are equivalent to the line items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, as reported on the statements of operations.(2) The variance between the Pre-Tax column and the sum of the Adjustments to Segment EBITDA, if any, is depreciation and amortization.(3) The variance between the Pre-Tax column and the sum of the Adjustments to Segment EBITDA is primarily interest income. Reconciliation to Adjusted Earnings Per Diluted Share

Set forth below is a reconciliation of Adjusted Earnings Per Diluted Share to Earnings (loss) per diluted share.

Twelve Months Ended September 30, 2020 Adjustments to Segment EBITDA Consolidated Results Corrugated Consumer L&D and Pre-Tax Tax Net of Packaging Packaging Other Tax

GAAP Results ^ $ (522.6) $ (163.5) $ (686.1)(1)Goodwill n/a n/a n/a 1,333.2 (18.9) 1,314.3impairmentRestructuring n/a n/a n/a 112.7 (28.2) 84.5and other itemsNorthCharleston andFlorence transition andreconfigurationcosts^ (2) 38.6 - - 43.4 (10.6) 32.8

COVID-19 16.5 15.1 - 31.6 (7.7) 23.9employee paymentsLosses atclosed plants, 14.1 5.6 - 21.9 (5.4) 16.5transition and start-up costs^(2)Accelerateddepreciation on major capitalprojectsand certain n/a n/a n/a 17.3 (4.2) 13.1plant closures^ (2)MEPP liabilityadjustment due n/a n/a n/a 15.0 (3.7) 11.3to interestratesLoss on n/a n/a n/a 1.5 (0.4) 1.1extinguishment of debtMultiemployerpension n/a n/a n/a 0.9 (0.2) 0.7withdrawalexpenseBrazil indirect (29.7) (2.0) - (51.9) 16.0 (35.9)tax claim ^(3)Litigation (7.2) (4.3) n/a (23.9) 5.9 (18.0)recoveryAdjustmentrelated to Tax n/a n/a n/a - (16.4) (16.4)Cuts and JobsActDirectrecoveries from (16.1) n/a n/a (16.1) 4.0 (12.1)Hurricane Michael, net ofrelated costsGain on sale of n/a n/a n/a (15.6) 3.8 (11.8)certain closed facilitiesLand andDevelopment n/a n/a (1.4) (1.3) 0.3 (1.0)operatingresultsOther - 3.9 - 6.0 (1.5) 4.5

Adjustments/ $ 16.2 $ 18.3 $ (1.4) $ 952.1 $ (230.7) $ 721.4Adjusted ResultsNoncontrolling (4.8)interestsAdjusted Net $ 716.6Income ^(1) The GAAP results for Pre-Tax, Tax and Net of Tax are equivalent to theline items "Income (loss) before income taxes","Income tax expense" and "Consolidated net income (loss)", respectively, asreported on the statements of operations.^(2) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA, if any, is depreciation and amortization.^(3) The variance between the Pre-Tax column and the sum of the Adjustments toSegment EBITDA is primarily interest income. Reconciliation to Adjusted Earnings Per Diluted Share

Set forth below is a reconciliation of Adjusted Earnings Per Diluted Share to Earnings (loss) per diluted share.

Three Months Ended Twelve Months Ended Sep. 30, Sep. 30, Sep. 30, Sep. 30, 2021 2020 2021 2020 Earnings (loss) per diluted share $ 1.20 $ (4.45) $ 3.13 $ (2.67)

Goodwill impairment - 5.06 - 5.07

Restructuring and other items 0.03 0.17 0.09 0.33

Grupo Gondi option - - 0.06 -

COVID-19 employee payments - - 0.06 0.09

Ransomware recovery costs, net of (0.03) - 0.05 -insurance proceedsAccelerated compensation - former CEO - - 0.04 -

Loss on extinguishment of debt 0.03 - 0.03 -

Losses at closed plants, transition - 0.01 0.01 0.07and start-up costsNorth Charleston and Florence - - - 0.13transition and reconfiguration costsMEPP liability adjustment due to - 0.04 - 0.05interest ratesAccelerated depreciation on major - - - 0.05capital projects and certain plant closuresGain on sale of investment - - (0.05) -

Gain on sale of sawmill - - (0.03) -

Brazil indirect tax claim - (0.02) - (0.14)

Litigation recovery - (0.04) - (0.07)

Adjustments related to Tax Cuts and - - - (0.06)Jobs ActDirect recoveries from Hurricane - - - (0.05)Michael, net of related costsGain on sale of certain closed - (0.03) - (0.05)facilitiesOther - - - 0.02

Adjustment to reflect adjusted - (0.01) - (0.02)earnings on a fully diluted basisAdjusted Earnings Per Diluted Share $ 1.23 $ 0.73 $ 3.39 $ 2.75

Set forth below are reconciliations of Adjusted Segment Sales, Adjusted Segment EBITDA and Adjusted Segment EBITDA Margins to the most directly comparable GAAP measures, Segment Sales and Segment Income, for the periods indicated (in millions, except percentages):

Reconciliation for the Quarter Ended September 30, 2021 Corrugated Consumer Corporate Packaging Packaging / Consolidated Elim. Segment sales / Net sales $ 3,398.7 $ 1,783.0 $ (91.2 ) $ 5,090.5

Less: Trade sales (98.3 ) - - (98.3 )

Adjusted Segment Sales $ 3,300.4 $ 1,783.0 $ (91.2 ) $ 4,992.2

Segment income^ (1) $ 374.8 $ 151.6 $ - $ 526.4

Non-allocated expenses - - (3.8 ) (3.8 )

Depreciation & 231.6 131.8 1.7 365.1 amortizationSegment EBITDA 606.4 283.4 (2.1 ) 887.7

Adjustments^ (2) (0.1 ) 0.5 (10.2 ) (9.8 )

Adjusted Segment EBITDA $ 606.3 $ 283.9 $ (12.3 ) $ 877.9

Segment EBITDA Margins 17.8 % 15.9 %

Adj. Segment EBITDA 18.4 % 15.9 %Margins ^(1) Segment income includes pension and other postretirement income (expense)^(2) See the Adjusted Net Income tables on page 11 for adjustmentsCorrugated Reconciliation for the Quarter Ended September 30, 2021NorthAmericanCorrugatedBrazilCorrugatedOther (1)TotalCorrugatedPackagingSegment sales$

2,922.2

$

152.9

$

323.6

$

3,398.7

Less: Trade sales(98.3

)

-

-

(98.3

)

Adjusted Segment Sales$

2,823.9

$

152.9

$

323.6

$

3,300.4

Segment income (2)$

324.3

$

40.7

$

9.8

$

374.8

Depreciation & amortization212.3

12.7

6.6

231.6

Segment EBITDA536.6

53.4

16.4

606.4

Adjustments (3)(0.1

)

-

-

(0.1

)

Adjusted Segment EBITDA$

536.5

$

53.4

$

16.4

$

606.3

Segment EBITDA Margins18.4

%

34.9

%

17.8

%

Adj. Segment EBITDA Margins19.0

%

34.9

%

18.4

%

(1) The "Other" column includes our Victory Packaging and India corrugated operations.(2) Segment income includes pension and other postretirement income (expense)(3) See the Adjusted Net Income tables on page 11 for adjustmentsCorrugated Reconciliation for the Quarter Ended September 30, 2021 North Brazil Other ^ Total American Corrugated (1) Corrugated Corrugated Packaging Segment sales $ 2,922.2 $ 152.9 $ 323.6 $ 3,398.7

Less: Trade sales (98.3 ) - - (98.3 )

Adjusted Segment Sales $ 2,823.9 $ 152.9 $ 323.6 $ 3,300.4

Segment income^ (2) $ 324.3 $ 40.7 $ 9.8 $ 374.8

Depreciation & amortization 212.3 12.7 6.6 231.6

Segment EBITDA 536.6 53.4 16.4 606.4

Adjustments ^(3) (0.1 ) - - (0.1 )

Adjusted Segment EBITDA $ 536.5 $ 53.4 $ 16.4 $ 606.3

Segment EBITDA Margins 18.4 % 34.9 % 17.8 %

Adj. Segment EBITDA Margins 19.0 % 34.9 % 18.4 %

^(1) The "Other" column includes our Victory Packaging and India corrugatedoperations.^(2) Segment income includes pension and other postretirement income (expense)^(3) See the Adjusted Net Income tables on page 11 for adjustmentsReconciliation for the Quarter Ended September 30, 2020 Corrugated Consumer Corporate Packaging Packaging / Consolidated Elim. Segment sales / Net sales $ 2,898.4 $ 1,627.2 $ (54.1 ) $ 4,471.5

Less: Trade sales (83.4 ) - - (83.4 )

Adjusted Segment Sales $ 2,815.0 $ 1,627.2 $ (54.1 ) $ 4,388.1

Segment income^ (1) $ 281.9 $ 91.4 $ - $ 373.3

Non-allocated expenses - - (16.6 ) (16.6 )

Depreciation & 234.4 129.8 1.4 365.6 amortizationSegment EBITDA 516.3 221.2 (15.2 ) 722.3

Adjustments^ (2) (2.9 ) 1.3 - (1.6 )

Adjusted Segment EBITDA $ 513.4 $ 222.5 $ (15.2 ) $ 720.7

Segment EBITDA Margins 17.8 % 13.6 %

Adj. Segment EBITDA 18.2 % 13.7 %Margins ^(1) Segment income includes pension and other postretirement income (expense)^(2) See the Adjusted Net Income tables on page 11 for adjustmentsCorrugated Reconciliation for the Quarter Ended September 30, 2020NorthAmericanCorrugatedBrazilCorrugatedOther (1)TotalCorrugatedPackagingSegment sales$

2,504.5

$

97.0

$

296.9

$

2,898.4

Less: Trade sales(83.4

)

-

-

(83.4

)

Adjusted Segment Sales$

2,421.1

$

97.0

$

296.9

$

2,815.0

Segment income (2)$

255.7

$

15.2

$

11.0

$

281.9

Depreciation & amortization218.4

9.7

6.3

234.4

Segment EBITDA474.1

24.9

17.3

516.3

Adjustments (3)1.4

(4.3

)

-

(2.9

)

Adjusted Segment EBITDA$

475.5

$

20.6

$

17.3

$

513.4

Segment EBITDA Margins18.9

%

25.7

%

17.8

%

Adj. Segment EBITDA Margins19.6

%

21.2

%

18.2

%

(1) The "Other" column includes our Victory Packaging and India corrugated operations.(2) Segment income includes pension and other postretirement income (expense)(3) See the Adjusted Net Income tables on page 11 for adjustmentsCorrugated Reconciliation for the Quarter Ended September 30, 2020 North Brazil Other ^ Total American Corrugated (1) Corrugated Corrugated Packaging Segment sales $ 2,504.5 $ 97.0 $ 296.9 $ 2,898.4

Less: Trade sales (83.4 ) - - (83.4 )

Adjusted Segment Sales $ 2,421.1 $ 97.0 $ 296.9 $ 2,815.0

Segment income^ (2) $ 255.7 $ 15.2 $ 11.0 $ 281.9

Depreciation & amortization 218.4 9.7 6.3 234.4

Segment EBITDA 474.1 24.9 17.3 516.3

Adjustments ^(3) 1.4 (4.3 ) - (2.9 )

Adjusted Segment EBITDA $ 475.5 $ 20.6 $ 17.3 $ 513.4

Segment EBITDA Margins 18.9 % 25.7 % 17.8 %

Adj. Segment EBITDA Margins 19.6 % 21.2 % 18.2 %

^(1) The "Other" column includes our Victory Packaging and India corrugatedoperations.^(2) Segment income includes pension and other postretirement income (expense)^(3) See the Adjusted Net Income tables on page 11 for adjustmentsReconciliation for the Twelve Months Ended September 30, 2021 Corrugated Consumer Corporate Packaging Packaging / Consolidated Elim. Segment sales / Net sales $ 12,343.7 $ 6,702.7 $ (300.3 ) $ 18,746.1

Less: Trade sales (351.2 ) - - (351.2 )

Adjusted Segment Sales $ 11,992.5 $ 6,702.7 $ (300.3 ) $ 18,394.9

Segment income^ (1) $ 1,116.8 $ 457.3 $ - $ 1,574.1

Non-allocated expenses - - (89.4 ) (89.4 )

Depreciation & 926.6 527.8 5.6 1,460.0 amortizationSegment EBITDA 2,043.4 985.1 (83.8 ) 2,944.7

Adjustments^ (2) 15.5 13.4 25.6 54.5

Adjusted Segment EBITDA $ 2,058.9 $ 998.5 $ (58.2 ) $ 2,999.2

Segment EBITDA Margins 16.6 % 14.7 %

Adj. Segment EBITDA 17.2 % 14.9 %Margins ^(1) Segment income includes pension and other postretirement income (expense)^(2) See the Adjusted Net Income tables on page 12 for adjustmentsCorrugated Reconciliation for the Twelve Months Ended September 30, 2021NorthAmericanCorrugatedBrazilCorrugatedOther (1)TotalCorrugatedPackagingSegment sales$

10,690.5

$

457.6

$

1,195.6

$

12,343.7

Less: Trade sales(351.2

)

-

-

(351.2

)

Adjusted Segment Sales$

10,339.3

$

457.6

$

1,195.6

$

11,992.5

Segment income (2)$

1,020.0

$

61.6

$

35.2

$

1,116.8

Depreciation & amortization856.2

45.6

24.8

926.6

Segment EBITDA1,876.2

107.2

60.0

2,043.4

Adjustments (3)15.2

(0.4

)

0.7

15.5

Adjusted Segment EBITDA$

1,891.4

$

106.8

$

60.7

$

2,058.9

Segment EBITDA Margins17.6

%

23.4

%

16.6

%

Adj. Segment EBITDA Margins18.3

%

23.3

%

17.2

%

(1) The "Other" column includes our Victory Packaging and India corrugated operations.(2) Segment income includes pension and other postretirement income (expense)(3) See the Adjusted Net Income tables on page 12 for adjustmentsCorrugated Reconciliation for the Twelve Months Ended September 30, 2021 North Brazil Other ^ Total American Corrugated (1) Corrugated Corrugated Packaging Segment sales $ 10,690.5 $ 457.6 $ 1,195.6 $ 12,343.7

Less: Trade sales (351.2 ) - - (351.2 )

Adjusted Segment Sales $ 10,339.3 $ 457.6 $ 1,195.6 $ 11,992.5

Segment income^ (2) $ 1,020.0 $ 61.6 $ 35.2 $ 1,116.8

Depreciation & amortization 856.2 45.6 24.8 926.6

Segment EBITDA 1,876.2 107.2 60.0 2,043.4

Adjustments ^(3) 15.2 (0.4 ) 0.7 15.5

Adjusted Segment EBITDA $ 1,891.4 $ 106.8 $ 60.7 $ 2,058.9

Segment EBITDA Margins 17.6 % 23.4 % 16.6 %

Adj. Segment EBITDA Margins 18.3 % 23.3 % 17.2 %

^(1) The "Other" column includes our Victory Packaging and India corrugatedoperations.^(2) Segment income includes pension and other postretirement income (expense)^(3) See the Adjusted Net Income tables on page 12 for adjustmentsReconciliation for the Twelve Months Ended September 30, 2020 Corrugated Consumer Land and Corporate Packaging Packaging Development / Consolidated Elim. Segment sales $ 11,419.2 $ 6,333.0 $ 18.9 $ (192.3 ) $ 17,578.8 / Net salesLess: Trade (373.5 ) - - - (373.5 )salesAdjusted $ 11,045.7 $ 6,333.0 $ 18.9 $ (192.3 ) $ 17,205.3 Segment Sales Segment $ 1,037.7 $ 323.7 $ 1.4 $ - $ 1,362.8 income^ (1)Non-allocated - - - (70.7 ) (70.7 )expensesDepreciation 951.4 529.5 - 6.1 1,487.0 & amortizationSegment 1,989.1 853.2 1.4 (64.6 ) 2,779.1 EBITDAAdjustments^ 16.2 18.3 (1.4 ) - 33.1 (2)Adjusted $ 2,005.3 $ 871.5 $ - $ (64.6 ) $ 2,812.2 Segment EBITDA Segment 17.4 % 13.5 %EBITDA MarginsAdj. Segment 18.2 % 13.8 %EBITDA Margins ^(1) Segment income includes pension and other postretirement income (expense)^(2) See the Adjusted Net Income tables on page 12 for adjustmentsCorrugated Reconciliation for the Twelve Months Ended September 30, 2020NorthAmericanCorrugatedBrazilCorrugatedOther (1)TotalCorrugatedPackagingSegment sales$

9,993.0

$

393.1

$

1,033.1

$

11,419.2

Less: Trade sales(373.5

)

-

-

(373.5

)

Adjusted Segment Sales$

9,619.5

$

393.1

$

1,033.1

$

11,045.7

Segment income (2)$

947.0

$

71.3

$

19.4

$

1,037.7

Depreciation & amortization880.9

45.7

24.8

951.4

Segment EBITDA1,827.9

117.0

44.2

1,989.1

Adjustments (3)41.6

(25.8

)

0.4

16.2

Adjusted Segment EBITDA$

1,869.5

$

91.2

$

44.6

$

2,005.3

Segment EBITDA Margins18.3

%

29.8

%

17.4

%

Adj. Segment EBITDA Margins19.4

%

23.2

%

18.2

%

(1) The "Other" column includes our Victory Packaging and India corrugated operations.(2) Segment income includes pension and other postretirement income (expense)(3) See the Adjusted Net Income tables on page 12 for adjustments Adjusted Operating Cash Flow and Adjusted Free Cash Flow

WestRock uses the non-GAAP financial measures "Adjusted Operating Cash Flow" and "Adjusted Free Cash Flow". Management believes these measures provide WestRock's board of directors, investors, potential investors, securities analysts and others with useful information to evaluate WestRock's performance relative to other periods because it excludes certain cash restructuring and other costs, net of tax that management believes are not indicative of the ongoing operating results of the business. We believe "Adjusted Free Cash Flow" provides greater comparability across periods by excluding capital expenditures. WestRock believes that the most directly comparable GAAP measure is "Net cash provided by operating activities". Set forth below is a reconciliation of "Adjusted Operating Cash Flow" and "Adjusted Free Cash Flow" to Net cash provided by operating activities for the periods indicated (in millions):

Corrugated Reconciliation for the Twelve Months Ended September 30, 2020 North Brazil Other ^ Total American Corrugated (1) Corrugated Corrugated Packaging Segment sales $ 9,993.0 $ 393.1 $ 1,033.1 $ 11,419.2

Less: Trade sales (373.5 ) - - (373.5 )

Adjusted Segment Sales $ 9,619.5 $ 393.1 $ 1,033.1 $ 11,045.7

Segment income^ (2) $ 947.0 $ 71.3 $ 19.4 $ 1,037.7

Depreciation & amortization 880.9 45.7 24.8 951.4

Segment EBITDA 1,827.9 117.0 44.2 1,989.1

Adjustments ^(3) 41.6 (25.8 ) 0.4 16.2

Adjusted Segment EBITDA $ 1,869.5 $ 91.2 $ 44.6 $ 2,005.3

Segment EBITDA Margins 18.3 % 29.8 % 17.4 %

Adj. Segment EBITDA Margins 19.4 % 23.2 % 18.2 %

^(1) The "Other" column includes our Victory Packaging and India corrugatedoperations.^(2) Segment income includes pension and other postretirement income (expense)^(3) See the Adjusted Net Income tables on page 12 for adjustments Adjusted Operating Cash Flow and Adjusted Free Cash Flow

WestRock uses the non-GAAP financial measures "Adjusted Operating Cash Flow" and "Adjusted Free Cash Flow". Management believes these measures provide WestRock's board of directors, investors, potential investors, securities analysts and others with useful information to evaluate WestRock's performance relative to other periods because it excludes certain cash restructuring and other costs, net of tax that management believes are not indicative of the ongoing operating results of the business. We believe "Adjusted Free Cash Flow" provides greater comparability across periods by excluding capital expenditures. WestRock believes that the most directly comparable GAAP measure is "Net cash provided by operating activities". Set forth below is a reconciliation of "Adjusted Operating Cash Flow" and "Adjusted Free Cash Flow" to Net cash provided by operating activities for the periods indicated (in millions):

Three Months Ended Twelve Months Ended Sep. 30, Sep 30, Sep. 30, Sep 30, 2021 2020 2021 2020Net cash provided by $ 677.5 $ 731.7 $ 2,279.9 $ 2,070.7 operating activitiesPlus: Cash Restructuring and other costs, net ofincome tax benefit of $1.3, 4.1 16.7 28.2 59.8 $5.4, $9.1 and $19.4Adjusted Operating Cash Flow 681.6 748.4 2,308.1 2,130.5

Less: Capital expenditures (310.1 ) (117.9 ) (815.5 ) (978.1 )

Adjusted Free Cash Flow $ 371.5 $ 630.5 $ 1,492.6 $ 1,152.4

Adjusted Net Debt

WestRock uses the non-GAAP financial measure "Adjusted Net Debt". Management believes this measure provides WestRock's board of directors, investors, potential investors, securities analysts and others with useful information to evaluate WestRock's repayment of debt relative to other periods because it includes or excludes certain items management believes are not comparable from period to period. We believe "Adjusted Net Debt" provides greater comparability across periods by adjusting for cash and cash equivalents, as well as fair value of debt step-up included in Total Debt that is not subject to debt repayment. WestRock believes that the most directly comparable GAAP measure is "Total Debt" which is derived from the current portion of debt and long-term debt due after one year. Set forth below is a reconciliation of "Adjusted Net Debt" to "Total Debt" for the periods indicated (in millions):

Sep. 30, June 30, Sep. 30, 2021 2021 2020Current portion of debt $ 168.8 $ 565.7 $ 222.9

Long-term debt due after one year 8,025.3 8,106.9 9,207.7

Total debt $ 8,194.1 $ 8,672.6 $ 9,430.6

Less: Cash and cash equivalents (290.9 ) (549.8 ) (251.1 )

Less: Fair value of debt step-up (192.4 ) (196.6 ) (208.9 )

Adjusted Net Debt $ 7,710.8 $ 7,926.2 $ 8,970.6

Total debt reduction - quarter $ 478.5

Total debt reduction - year $ 1,236.5

Adjusted Net Debt reduction - quarter $ 215.4

Adjusted Net Debt reduction - year $ 1,259.8

Leverage Ratio, Net Leverage Ratio, Total Funded Debt and Adjusted Total Funded Debt

WestRock uses the non-GAAP financial measures "leverage ratio" and "net leverage ratio" as measurements of our operating performance and to compare to our publicly disclosed target leverage ratio. WestRock believes WestRock's board of directors, investors, potential investors, securities analysts and others use each measure to evaluate our available borrowing capacity - in the case of "net leverage ratio", adjusted for cash and cash equivalents. WestRock defines leverage ratio as our Total Funded Debt divided by our Credit Agreement EBITDA, each of which term is defined in our credit agreement, dated July 1, 2015. Borrowing capacity under our credit agreement depends on, in addition to other measures, the Credit Agreement Debt/EBITDA ratio or the "leverage ratio". While the leverage ratio under our credit agreement determines the credit spread on our debt, we are not subject to a leverage ratio cap. Our credit agreement is subject to a Debt to Capitalization and Consolidated Interest Coverage Ratio, as defined therein. WestRock defines "Adjusted Total Funded Debt" as our Total Funded Debt less cash and cash equivalents. Net Leverage Ratio is the product of Adjusted Total Funded Debt divided by our Credit Agreement EBITDA. Set forth below is a reconciliation of net income attributable to common stockholders to Credit Agreement EBITDA and Total debt to Total Funded Debt to derive our Leverage Ratio and Net Leverage Ratio for the periods indicated (in millions, except ratios):

Twelve Months Ended September 30, 2021 Net income attributable to common stockholders $ 838.3

Interest expense, net 349.0

Income tax expense 243.4

Depreciation and amortization 1,460.0

Additional permitted charges ^(1) 276.8

Credit Agreement EBITDA $ 3,167.5

Current portion of debt $ 168.8

Long-term debt due after one year 8,025.3

Total debt $ 8,194.1

Less: FV step-up and deferred financing fees (159.8 )

Less: short-term and long-term chip mill obligation (93.1 )

Less: other adjustments to funded debt (123.7 )

Total Funded Debt $ 7,817.5

LTM Credit Agreement EBITDA $ 3,167.5

Leverage Ratio 2.47 x

Total Funded Debt $ 7,817.5

Less: cash and cash equivalents (290.9 )

Adjusted Total Funded Debt $ 7,526.6

Net Leverage Ratio 2.38 x

(1) Additional permitted charges primarily include restructuring and othercosts, and certain non-cash itemsas allowed under the Credit Agreement. View source version on businesswire.com: https://www.businesswire.com/news/home/20211109005432/en/

CONTACT: Investors: James Armstrong, 470-328-6327 Vice President, Investor Relations james.armstrong@westrock.com

CONTACT: Tim Murphy, 678-291-7363 Senior Vice President - Treasurer tim.murphy@westrock.com

CONTACT: Media: Courtney James, 470-328-6397 Manager, Corporate Communications mediainquiries@westrock.com