© 2012 Graphic Packaging International, Inc.
2012 Southern Employee Benefits Conference
Clint DemetriouVP, Total Rewards
October 2, 2012
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© 2012 Graphic Packaging International, Inc. 2
Packaging Solutions That Improve the World in Which We Live
Graphic Packaging International- Business Overview
© 2012 Graphic Packaging International, Inc.
FoodBeverage
Household and Personal
Care
Club Store
MicrowaveMultiwall
Labels
Key Products
Machinery
Specialty Plastics
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© 2012 Graphic Packaging International, Inc.
Food
Beverage
Household and Personal Care
Microwave
Labels
Graphic Packaging Cartons for Consumer Products
© 2012 Graphic Packaging International, Inc.
Centralized Managed Integrated Global Supply Chain to Our Customers
Largest U.S. producer of folding cartons
Focused on food & beverage end markets
Vertically integrated network of 55 converting facilities and 7 mills (80+% integrated)
3 virgin (CUK) mills produce approximately ~1.5 mm tons per year
5 recycled (CRB & URB) mills produce approximately ~0.9 mm tons per year
Paperboard Packaging BusinessOverview
Dry Foods29%
Frozen Foods
21%
Food Services
5%
Health & Beauty
2%
Soap/Laundry2%
Other8%
BeverageCarriers
33%
Industry End MarketsKey Facts
FiberSupply
PackagingMachinery
CartonConverting
Global Innovation &Carton Development
PaperboardProduction
Wood
OCC
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© 2012 Graphic Packaging International, Inc. 6
U.S. and Canada Central & South America Europe Pac Rim
Major Customers Major Customers Major Customers Major Customers
Our Customers Are Global Food, Beverageand Consumer Products Companies
We Grow Globally with Our Customers
© 2012 Graphic Packaging International, Inc.
Graphic Packaging at a Glance
Headquarters- Marietta, GA (Sandy Springs)
$4.2B revenue
3 Major M & A events since 1998
Manufacturing Sector
12,000 employees; some representation
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© 2012 Graphic Packaging International, Inc.
Comprehensive package of compensation and benefits.Includes retirement plans, medical plans, disability and life insurance, market competitive salary and wages
Invest over $1 billion per year in compensation and benefits for employees and their dependents
15,000 retirees currently receive or will receive retirement benefits
12,000 dependents are covered by our medical plans
Graphic Packaging at a Glance
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© 2012 Graphic Packaging International, Inc.
Benefits- Design Principles“Aggressive” on health, leave, systems/processes
1. Sustainability- for the company, for the employee
2. Productivity- bringing my best to work and to home
3. Accountability- “skin in the game”, incentive to take action
4. Engagement- supporting supervisory engagement
© 2012 Graphic Packaging International, Inc.
Graphic Packaging- Our Employees
“Who’s Your Reason?”
• Age 48, male, married with children
• Earns $40,000
• Lives in small town America, family and community are important, takes pride in their work for GPI
• Limited Internet access at work; not likely to read GPI communications
• Dealing with one or more potentially serious health issues
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© 2012 Graphic Packaging International, Inc.
Benefit Priorities
1. Simplify Plans Too Many
2. Labor contracts “Same As Salary”
3. Administration Leverage external partnerships, LEAN process, improve systems
4. Reduce Liability Accelerate to DC (minimize the unknown), one culture, data consolidation
5. Medical Introduce HRA and incentives, actuarial/dependent pricing, spousal
surcharge, Position for Reform
6. Manage Leave Day one reporting and location metrics
7. Behavior change GPIFIT- narrow focus, tobacco-free, weight, Who’s Your Reason?, Remember audience
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© 2012 Graphic Packaging International, Inc.
Health Care Plan 2013
HRA Plan, Spousal Mandate, and Dependent Subsidy Reduction
$100
$125
$150
$175
$200
$225
$250
$275
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2009 Status Quo
2012 Status Quo
HRA Plan
HRA Plan withSpousal Mandate
HRA Plan withSpousal Mandateand DependentSubsidy Differential
2013 Cost (Savings) 2022 Cost (Savings)Total Cost
2013 through 2022 (Savings)
2012 Status Quo
HRA Plan
HRA Plan with Spousal Mandate
HRA Plan with Spousal Mandate and Increased Dependent Cost Share
Total Net Savings
How do you bend the curve in today’s environment?
Assumes enrollment of all 9,791 enrolled employees (Union and non-Union) in the New "SAS" HRA plans
In M
illio
ns
© 2012 Graphic Packaging International, Inc.
Information—$500√ Biometric Screening√ HRQ
Action—$500√ Preventive Care Exam√ Engagement with Health Coach
and Development of Health Action Plan
√ 6-month Check-In with Health Coach
2013$1, 000 HRA
Information—$250√ Biometric Screening√ HRQ
Outcomes—$250Examples Include:√ Reduce BMI by 5%√ Reduce cholesterol by 10%√ Reduce blood pressure by 10 pts
Action—$500√ Preventive Care Exam√ Engagement with Health Coach
and Development of Health Action Plan
√ 6-month Check-In with Health Coach
2014$1, 000 HRA
2015$1, 000 HRA
Outcomes—$700Examples Include:√ Reduce BMI by 5%√ Reduce cholesterol by 10%√ Reduce blood pressure by
10 points√ Reduce blood sugar by 5%√ Stop smoking√ Reduce health risk factor by 5%
Action—$300√ Preventive Care Exam√ Engagement with Health Coach
and Development of Health Action Plan
√ 6-month Check-In with Health Coach
Information—Gating Mechanism√ Biometric Screening and HRQ
Health Improvement
Health Care Plan 2013 Know, Act, Improve
© 2012 Graphic Packaging International, Inc.
Health Care Plan 2013 Health Plus Incentive Plan
Actions and Incentives
HRQ and Biometric Screening ($500)
Preventive Care Exam ($150)
Engagement with Health Coach and Development of Health Action Plan ($150)
Six-month Progress Report with Health Coach ($200)
PPO Plus Health Reimbursement Account
Me
dic
al C
laim
Ex
pe
ns
es I
nc
urr
ed
Plan Coinsurance
Plan Deductible
Earn HRA Accumulation(First Dollar)
$1,200
$3,400
$600
$2,200
$200
$1,400
$1,000 $1,000 $1,000
90%/70%PPO
80%/60%PPO
70%/50%PPO
80%/60%PPO
90%/70%PPO
70%/50%PPO
Single Single SingleFamily Family Family
© 2012 Graphic Packaging International, Inc.
Employee
Supervisor
(May Vary)
Time Collection Devices
GPI
Local
HR
Leave Admin
Payroll
TotalAbsence Sheets
EE Request
sLeave
WorkbrainLisa Roche
ADP E-LbrM. Noland
KronosJ.L. Barnard
Superv.
CoversShift
Supervisor or HR
Asks EE to Report Leave to
Met
HR May Help/Be Notified
Employee Makes Call
Or . Submits Leave
Form
MetLifePaper or
Telephonic Intake of Leave
Old Leave Management Notification, Time System Workflow
Supervisor Confirms Time
Collection Device Updated Correctly:Daily, Weekly, or
Monthly.(Local HR
Monitors/Manages)
Call or Paper
Paper
Outsource
e 1
1
7
HR Monitoring
MetLife Claim Review and
Determination
Request for Info, Follow Up to Provider, etc.
Approval or Denial
Received
MetLinkReporting
Superv. Updated on
Leave- Cover
Shifts- Plan- Perf.
Mgmt.
Paper Claim
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© 2012 Graphic Packaging International, Inc.
Employee
Supervisor
(May Vary)
Time Collection Devices
GPI
Local
HR
Leave
Mgmt.
Partner
SAPPayroll
EE Request
sLeave
Uniform Time Management
System(Automated Input)
Superv.
CoversShift
ACTEC (Live)24 / 7 / 365
Telephonic Intake of Day 1 Absence
New Notification Workflow – Leave Management, Time Systems
Supervisor Complements Other Absence Data with Time
Collection Device (Local HR
Monitors/Manages)
HR Monitoring & Mgmt.
Leave Management Claim
Review and Determination
Request for Info, Follow Up to Provider, etc.
Approval or Denial
Received
“Day 1” Real Time E-notification
and/orEmail Bank
Leave Mgmt. (Cigna)E-notification
and/orReporting Bank
WC – Gallagher Bassett
2
3
1
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© 2012 Graphic Packaging International, Inc.
% of Leaves Managed by: June July August
Leave Partner 33% 27% 27%Location Attendance
Policy 67% 73% 73%
June 2012 July 2012 Aug 20120
500
1000
1500
2000
2500
3000
1237
989 962
2539 2619 2580
GPIWorks Referrals to Leave Partner
Yes NO
# o
f R
efer
rals
© 2012 Graphic Packaging International, Inc.
Graphic Packaging International
Thank You
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