The Combination closed on July 5, 2024, resulting in Smurfit Kappa and WestRock becoming wholly owned subsidiaries of Smurfit Westrock. The combination is expected to create a global leader in sustainable, paper-based packaging.

The company is targeting annual pre-tax run-rate synergies of $400 million by the end of the first full year following the Combination. Integration efforts are focused on combining businesses, operations, and corporate functions.

The Better Planet Packaging initiative aims to develop sustainable packaging with optimized materials, reduced carbon footprint, recyclability, recycled content, and natural biodegradability.

Successfully combining the businesses of Smurfit Kappa and WestRock in an efficient and effective manner is critical. Failure to achieve the anticipated synergies of the Combination may result in benefits not being realized.

The company has 30 interconnected customer-centric Innovation and Experience Centers strategically positioned throughout the organization to bring to life a 'local' approach to a global vision.

Smurfit Westrock is committed to creating packaging solutions that protect what we all care about. This commitment is evident in our culture and behaviors at all levels and across all areas of our business, informing our decisions and actions, now and into the future.

As a leading global manufacturing business, we have been, and may be in the future, materially adversely affected by economic and financial market conditions, geopolitical conflicts and other social and political unrest or change that are beyond our control.

We are exposed to significant competition in the paper and packaging industry, and if we are unable to compete effectively, our business, results of operations, cash flows and financial condition, and the trading price of our ordinary shares, could be materially adversely affected.

We are targeting annual pre-tax run-rate synergies of $400 million by the end of the first full year following the recent Combination between Smurfit Kappa and WestRock, owing to integration benefits, procurement leverage and administrative overhead rationalization.

The industries in which we operate are highly competitive, and no single company dominates any of those industries.

The primary competitive factors we face include price, design, product innovation, quality, service, and sustainability, with varying emphasis on these factors depending on the product line and customer preferences.

Our products also compete, to some extent, with various other packaging materials, including products made of plastics and various types of metal. Customer shifts away from paper packaging to packaging made from other materials could adversely affect us.

Because our operations generally have high fixed operating costs, and pricing movements can be triggered, at times, between supply and demand, our earnings are highly dependent on demand.

Our margins are affected by the prices that we are able to charge for our products and the costs of the raw materials used to make these products. Our primary raw materials are recovered fiber, particularly old corrugated containers ('OCC'), and wood fiber.

We incur energy costs in our mill operations and the cost of natural gas, oil, electricity and purchased biomass fuel are subject to price fluctuations. If energy prices increase in the future, this would increase our production costs, which could consequently have a material adverse effect on our profitability.

Our approach to innovation focuses on helping customers save more, sell more, and optimize packaging solutions to enhance consumer experience.

We have a suite of tools to support innovation and selling efforts. The strength of these tools is the fact that they are developed and are equally available to all operations.

To support the market in developing and implementing innovative packaging solutions more rapidly, reliably and cost-effectively, we launched our Design2Market concept in 2022. With over 80 successful projects executed for leading brands, our customers benefit from a streamlined testing process, reduced risk and sustainable packaging options.

We operate in a capital-intensive industry and undertake expansion projects to either support growth in our business or improve the breadth and quality of our product offerings, including investments in both mill and converting operations.

Integrating Smurfit Kappa and WestRock's businesses, administration and cultures, and achieving synergies from the Combination is a strategic priority.

Based on these focus areas, we have developed the following six strategic priorities: Efficiently allocating capital.

At Smurfit Westrock we are committed to creating packaging solutions that protect what we all care about. We believe this commitment is evident in our culture and behaviors at all levels and across all areas of our business, informing our decisions and actions, now and into the future.

There is strong oversight of sustainability and related matters within the Company. The Sustainability Committee of the Board of Directors (the 'Board') has been in place since the completion of the Combination and met on three occasions.

We recognize the need for climate-related disclosures as part of our commitment to sustainability and responsible citizenship. We plan to publish an overview of our approach to climate risk management in the second quarter of 2025, which will take into consideration the recommendations of the Task Force on Climate-related Financial Disclosures.

As a leading global manufacturing business, we have been, and may be in the future, materially adversely affected by economic and financial market conditions, geopolitical conflicts and other social and political unrest or change that are beyond our control.

We are exposed to significant competition in the paper and packaging industry, and if we are unable to compete effectively, our business, results of operations, cash flows and financial condition, and the trading price of our ordinary shares, could be materially adversely affected.

Changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations, could have an adverse effect on our reputation, business, financial condition and results of operations.