Strategy and Financial Overview

Deutsche Bank Securities Inc.Thirteenth Annual Global High Yield Conference

September 28, 2005

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Forward Looking Statements

Statements of the Company's expectations made during this event are

"forward-looking statements" as defined in the Private Securities Litigation

Reform Act of 1995. Such statements are based on currently available

information and are subject to various risks and uncertainties that could cause

actual results to differ materially from the Company's historical experience and

its present expectations. Undue reliance should not be placed on such

forward-looking statements, as such statements speak only as of the date on

which they are made. Additional information regarding risks facing the

Company is contained in the Company's periodic filings with the SEC,

including our Form 10-K, as amended, for 2004.

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• #1 position in paperboard packaging– Beverage – Food– Consumer products

• 2004 sales of $2.4 billion (NYSE: GPK)

• Approximately 8,000 employees worldwide

• Over 100 years of operating history (founded in 1884)

• Formed by merger of Riverwood and Graphic Packaging in 2003

Company Snapshot

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�� Top line growth:Top line growth:−− Continue to build strong customer baseContinue to build strong customer base

−− Strengthen #1 position in paperboard packagingStrengthen #1 position in paperboard packaging

−− Exceed industry growth through product innovationExceed industry growth through product innovation

−− Adapt products to changing marketsAdapt products to changing markets

�� Bottom line performance:Bottom line performance:–– Ongoing focus on cost reductionOngoing focus on cost reduction

–– Improve asset utilization Improve asset utilization

–– Optimize sourcing, production and sales mixOptimize sourcing, production and sales mix

–– Respond to input cost volatilityRespond to input cost volatility

Business Strategy

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Top Line Growth

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Americas Europe Asia – Pacific

Anheuser-BuschAsahi BreweryBass BrewersBirra PeroniBoston BeerBrasserie de St-OmerBritvicCadbury-SchweppesCampbell’s CarlsbergCoca-ColaConAgraCoors Brewing CompanyDanoneDel MonteDr Pepper / 7-UpFemsa

General MillsGeorgia-PacificGuinnessHavi/PersecoHeineken BreweryHeinzHolstenHormelInterbrewKaiser BreweryKellogg’sKirin BreweryKraft FoodsLabattLion NathanLuigino’sMasterfoods

MahouMattel, Inc.NestléPepsiCo, Inc.Phillip MorrisPinnacle FoodsPripps RingnessSAB MillerSan MiguelSapporoSara Lee CorporationSchwan’sSuntoryUnileverWarsteinerWhitbread Yoplait

Continue to Build Strong Customer Base

Top 10 Customers account for approximately 48% of salesTop 10 Customers account for approximately 48% of salesTop 30 Customers account for approximately 59% of salesTop 30 Customers account for approximately 59% of sales

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GraphicGraphicPackagingPackaging

19%19%

MeadWestvacoMeadWestvaco9%9%SmurfitSmurfit--

StoneStone8%8%

IPIP9%9%RockRock--TennTenn

7%7%

FieldField4%4%

CaraustarCaraustar3%3%

All All OthersOthers

41%41%

1 1 Source: Paperboard Packaging Council, Company Reports, Fredonia Source: Paperboard Packaging Council, Company Reports, Fredonia report and management estimates for the U.S. folding carton markreport and management estimates for the U.S. folding carton market. Based on 2003 data.et. Based on 2003 data.

Graphic Graphic PackagingPackaging

55%55%

MeadMead--WestvacoWestvaco

41%41%

OtherOther4%4%

BeverageBeverage

Annual Growth 1%Annual Growth 1%

Overall U.S. Folding Carton MarketOverall U.S. Folding Carton Market: Approximately $8.6 BN: Approximately $8.6 BN11

Consumer ProductsConsumer Products

Annual Growth 1Annual Growth 1--2%2%

OtherOther45%45% GraphicGraphic

PackagingPackaging13%13%

SmurfitSmurfit10%10%

RockRock--TennTenn9%9%

CaraustarCaraustar4%4%

FieldField5%5%

MWVMWV4%4% IP 10%IP 10%

Strengthen #1 Position in Paperboard Packaging

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* *

Technology and Innovation Focused on Customer NeedsTechnology and Innovation Focused on Customer Needs

Package Differentiation

�� Impulse BuyImpulse Buy

�� BrandBrandRecognitionRecognition

ProductProtection

�� FreshnessFreshness

�� Extended Extended Shelf LifeShelf Life

Consumer Convenience

�� Ease of UseEase of Use

�� Time SavingTime Saving

Enhanced Strength

�� DurabilityDurability

�� Tear Tear ResistantResistant

*2004 Paperboard Packaging Council Competition Award

Exceed Industry Growth Through Product Innovation

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2004 � Kellogg’s Pop Tarts in Z-Flute� Nestle Hot Pockets in new Microwave Technology� Quaker Oatmeal in new barrier coating package� Miller Brewing: two national brands in Fridge Vendor� Heineken N.V.: Heineken and Amstel Light in Fridge Vendor� Heinz Easy Fries in Microwave Susceptor� Kraft Taco Bell Grande in Z-Flute� Pepsi’s Aquafina in Fridge Vendor

Q1 2005 � Anheuser-Busch’s “B to the E” in two new basket carrier designs � Coors Brewing: Grolsch Beer in a new Twin Stack package� Kraft Tombstone Pizza in Microwave Susceptor� Ocean Spray fruit drinks in 8-pack format of Fridge Vendor

Q2 2005 � Anheuser-Busch: Budweiser aluminum bottles in new 4-pack carton� Miller Brewing’s fruit enhanced beer in a new six pack carton� Kraft Foods club store offerings in Z-Flute

In 2004, identified, evaluated, and managed over 100 new product initiatives resulting in $30 million of new revenues. Expect to match or surpass this in 2005.

New Product Launches: 2004 - 2005

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Adapt Products to Changing Markets

Aluminum Beverage Cans vs. PET: U.S. Shipments

15,000

25,000

35,000

45,000

55,000

65,000

75,000

85,000

95,000

105,000

115,000

1999 2000 2001 2002 2003 2004

Uni

ts S

hippe

d (0

00's

)

Aluminum Cans (beer & soft drinks) PET (beer & soft drinks)

Number of machine placements capable of packaging PET bottles inGraphic’s patented Fridge Vendor carton:

2002 = 3 2003 = 2 2004 = 16

Source: CSFB, Can Manufacturers Institute (CMI); The Freedonia Group, Inc.

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Bottom Line Performance

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� Continuous improvement process with proven tools such as Six Sigma

− $27 million in annual cost reduction achieved in 2004 through Continuous Improvement programs and embedded in cost structure

− Full year 2005 cost savings expected to approximate 2004 level

� Harvesting full benefits of manufacturing rationalization

– Beverage Manufacturing Strategy� Approximate $75 million investment expected to result in over $30

million of annual improvement in productivity and cost structures

− Food and Consumer Products Sheet Fed Strategy

� Approximate $26 million investment expected to result in almost $20 million of annual improvement in productivity and cost structures

Ongoing Focus on Cost Reduction

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Improve Asset Utilization

Operating Equipment Efficency (OEE) - - US MILLSOEE = Yield Efficiency * Speed Efficiency * Hourly Efficiency

73%

74%

75%

Q1 - 2004 Q2 - 2004 Q3 - 2004 Q4 - 2004 Q1 - 2005 Q2 - 2005

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� Board Sourcing: Reduce outside board purchases by converting more internally produced board (Total coated capacity = 1.7 million tons)

� Outside Board Purchases: 2003 = 356,000 tons 2004 = 323,000 tons 2005* = 242,000 tons

� Production Mix: Replaced approximately 50,000 tons of annual linerboard production with higher margin coated board

� Sales Mix: Substitute integrated folding cartons in place of open market roll-stock sales

Optimize Sourcing, Production and Sales Mix

* June YTD amount annualized.

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2003 MarketFactors

BusinessDrivers

Other LTM6/30/2005

$382$361

($113)

($10)

$102

EBITDA (CA): 2003 vs LTM 6/30/2005 ($ millions)

Respond to Input Cost Volatility

• Market Factors: Inflation, Volume/Mix, Exchange and Price

• Business Drivers: Synergies, Manufacturing Strategies and Continuous Improvement Programs

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Respond to Input Cost Volatility

• Inflation– Negatively impacted by higher prices for production inputs and services

• 2004 = $(49.9) million 2005 June YTD = $(53.3) million

• Response– Pass through increased board and resin costs to Food and Consumer

Products customers, where contractually possible– Continued commitment to continuous improvement and other cost

reduction programs including Six Sigma– Invest capital to ensure we maintain a competitive cost position within

the industry (Manufacturing Initiatives)– Improve asset utilization of existing assets– Optimize production, sourcing and sales mix

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Financial Results

Notes: * Represents Credit Agreement EBITDA

(0.34)2.872.53Interest Coverage Ratio *(0.30) 5.40 5.70 Leverage Ratio *

(40.2)69.028.8Operating Cash Flow

%(3.2)17.0%13.8%EBITDA Margin *(33.6)200.5166.9 EBITDA *

%(2.4)5.4%3.0%Operating Income Margin

(27.5) 63.435.9Operating Income

23.81,182.21,206.0 Net Revenues

F/(U)Q2 2004Q2 2005($ in millions)

VarianceActual YTDActual YTD

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Capital Structure 6/30/2005

$ millions

OutstandingInstrument Balance * Maturity

Revolver ** 36$ 2009

Term Loan C 1,158$ 2010 ($12.5 million annually; Bullet in 2010)

8.5% Senior Note 425$ 2011 (Bullet in 2011)

9.5% Senior Sub Note 425$ 2013 (Bullet in 2013)

* Debt is approximately 80% fixed with interest rate swaps** $325 million commitment

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� Net Operating Loss (NOL) carry-over at 6/30/2005 = $1.3 billion

� All income generated by the company will be offset by the NOL up to any limitation that may occur

� Absolute value of the NOL is approximate $455 million ($1.3 billion * 35% tax)

� Net present value of NOL is conservatively estimated to be between $200 - $300 million

Tax Profile

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Continued Focus on De-leveraging

� Focus on cash flow generation and debt reduction to increase equity value

� Most debt reduction occurs in Q2 and Q4 as semi-annual fixed debt interest of $38 million is due during Q1 and Q3

� Proceeds from potential asset sales of non-core assets could further assist in debt reduction

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� Premier, value-added paperboard packaging company serving the beverage, food and consumer products industries

� Leading position in high-growth, higher-margin end markets

� Stable cash flows due to strong customer base

� Increased system integration, scale, and geographic presence to provide total customer solutions

� Acknowledged as the industry leader in innovation

� Cost focused company culture incorporating continuous improvement concepts

� Management commitment to debt reduction

Investment Profile