#1WESTROCK Q1 FY22 RESULTS FEBRUARY 3, 2022 SNACKING boss Clementines LUNCH BOX ORANGES Clementines SWEET AND SEEDLESS FIRE ROASTED HOT Clementines BOOM OT SALSA OASTED BOOM SAUCE HOT BOOM HOT SALSA ROASTED Sunnydale PACIFIC NORTHWEST CHERRIES FRESH and in SEASON#22 FORWARD LOOKING STATEMENTS; NON-GAAP FINANCIAL MEASURES FORWARD LOOKING STATEMENTS: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to the statements on the slides entitled "Deliberate Actions for Margin Expansion and Growth", "Capital Allocation", "Q2 FY22 Guidance", "Proven Track Record of Growth", "Adjusted Free Cash Flow", "Additional Guidance" and "Key Commodity Annual Consumption Volumes" that give guidance or estimates for future periods, as well as statements regarding, among other things, (i) that new segments will provide greater transparency around our margin structure both today and as we transform into the company of tomorrow; (ii) that the Company will invest in our business through high-return, organic projects; (iii) that the Company will opportunistically and aggressively repurchase shares; (iv) that the Company will maintain its target leverage ratio; (v) that the Corrugated Packaging Adjusted EBITDA FY22 margin is expected at or above last year; (vi) that beauty, personal care, and spirits demand recovering as economy reopens, (vii) that we expect FY22 to be 7th consecutive year of Adjusted Free Cash Flow greater than $1 billion; (viii) that the Company continues to expect strong cash flows in FY22; (ix) that the Company is positioned for continued sales, earnings and free cash flow growth; and (x) that pricing flow through is expected to outpace inflation for FY22 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. WestRock 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. WestRock's businesses are subject to a number of risks that would affect any such forward-looking statements, including, among others, 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 our operations and the operations of our customers, impacts of the pandemic on commercial activity, our customers and consumer preferences and demand, supply chain disruptions, and disruptions in the credit or financial markets; decreases in demand for their products; increases in energy, raw materials, shipping and capital equipment costs; reduced supply of raw materials; adverse legal, reputational and financial effects on us resulting from last year's ransomware incident or additional cyber incidents; 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 a natural disaster, such as hurricanes or other unanticipated problems, such as labor difficulties, equipment failure or unscheduled maintenance and repair; risks associated with completing our strategic capital projects on the anticipated timelines and realizing our anticipated EBITDA improvements; benefits that we expect to realize from actions that we are taking and plan to take in response to COVID-19; 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 Item 1A under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2021. The information contained herein speaks as of the date hereof and WestRock 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. NON-GAAP FINANCIAL MEASURES: We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide users 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 our performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our GAAP results. The non- GAAP financial measures we present may differ from similarly captioned measures presented by other companies. We may from time to time be in possession of certain information regarding the Company that applicable law would not require us to disclose to the public in the ordinary course of business, but would require us to disclose if we were engaged in the purchase or sale of our securities. This presentation shall not be considered to be part of any solicitation of an offer to buy or sell the Company's securities. This presentation also may not include all of the information regarding the Company that you may need to make an investment decision regarding the Company's securities. Any investment decision should be made on the basis of the total mix of information regarding the Company that is publicly available as of the date of the investment decision. WestRock#3Q1 FY22 KEY HIGHLIGHTS ■ Sales and earnings growth in Q1 FY22 - - - Net sales of $5.0 billion, up 12.5% year-over-year Consolidated Adjusted EBITDA (1) of $680 million, up 1.6% year-over-year Consolidated Adjusted EBITDA margin (1) of 13.7%, down 150 basis points year-over-year Adjusted EPS(1) of $0.65 per share, up 6.6% year-over-year Generated $84 million of Adjusted Free Cash Flow(1) Packaging sales (2) increased 10% and Papers sales increase 24% year-over-year driven by successful implementation of price increases and solid demand ■ Cost inflation and supply chain disruptions negatively impacted earnings ■ Within target leverage ratio (1) and repurchased $100 million of stock STRONG EARNINGS GROWTH IN DYNAMIC ENVIRONMENT CONSOLIDATED ADJUSTED EBITDA (1) ($ in millions) $811 $878 $670 $680 $641 Q1 Q2 Q3 Q4 Q1 FY2021 CONSOLIDATED ADJUSTED EBITDA MARGINS(1) Corrugated Packaging (3) Consumer Packaging Global Paper Q1 FY22 VS. VS. MARGIN Q4 FY21 Q1 FY21 13.5% -370bps -460bps 14.9% -220bps -160bps WestRock(4) 17.2% -380bps +330bps 2.0% -470bps -340bps 13.7% -350bps -150bps Distribution 3 4) 7237 2) 3) Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix Corrugated Packaging segment sales (excluding white top trade sales) and Consumer Packaging segment sales Adjusted EBITDA margin (excluding white top trade sales) Consolidated Adjusted EBITDA margins. WestRock#44 REVISED SEGMENT REPORTING REPORTING WITH NEW SEGMENTS CORRUGATED PACKAGING CONSUMER PACKAGING GLOBAL PAPER DISTRIBUTION INTEGRATED CORRUGATED CONTAINERS AND OTHER CORRUGATED PRODUCTS INTEGRATED CONSUMER PACKAGING PRODUCTS SUCH AS FOLDING CARTONS AND INTERIOR PARTITIONS CONTAINERBOARD AND PAPERBOARD TO EXTERNAL CUSTOMERS DISTRIBUTION OF PACKAGING PRODUCTS NEW SEGMENTS WILL PROVIDE GREATER TRANSPARENCY AROUND OUR MARGIN STRUCTURE BOTH TODAY AND AS WE TRANSFORM INTO THE COMPANY OF TOMORROW WestRock#55 OUR PATH FORWARD TRANSFORMATION AGENDA DESIGNED TO IMPROVE OUR OVERALL ROIC GROWTH MARGIN IMPROVEMENT DISCIPLINED USE OF CAPITAL IMPROVING OPERATIONAL EFFECTIVENESS INVESTING IN OUR BUSINESS FOCUSING ON PRODUCTIVITY + EFFICIENCY WestRock#66 ABI MEXICO | GRUPO MODELO FOR A CIRCULAR FUTURE Corona ForD Extre LA CERVEZA MAS FINA ma. MODELO CONT. NET. 355 m Corona 1925 Vorona Extra DESDE CANCOLLAR® ECO packaging enabled by WestRock's CANCOLLAR® FORTUNA automation technology, eliminating over 100 tons of plastic waste. Designed for mid- and high-speed can lines, FORTUNATM is the fastest automation option on the market, enabling CanCollarⓇ speeds up to 600 packs per minute! © 2021 WESTROCK COMPANY. ALL RIGHTS RESERVED. LA CERVEZA MAS CECHO EN MEXICO CERIA MODELO CONT.NET. 355 ml 4.3% Alc. Vol. 1925 CANCOLLAR® ECO CANCOLLAR® FORTUNA MACHINE WestRock#77 DELIBERATE ACTIONS FOR MARGIN EXPANSION AND GROWTH Leverage the WestRock Enterprise Current EBITDA Margins Process standardization Shared services Consolidation & spend optimization • Commercial Excellence Operational Productivity and Simplification One Supply Chain . Reliability-planned and unplanned downtime • Hidden factory • • Digital/Automation • • Direct and indirect purchases • Planning tool integration • Analytics/Predictive tools capabilities • Portfolio Actions Streamlined customer service Focus on higher margin segments with complete solutions Capture margin opportunities with better tools and analytics • Optimize around core businesses • ROIC focused decision making Future EBITDA Margin Opportunity WestRock#8CAPITAL ALLOCATION FY22E FREE CASH FLOW OF >$1.3 BILLION M&A ✓ Bolt-on focus aligned to strategy ✓ Returns above Cost of Capital by Year 3 Џ ONGOING CAPITAL INVESTMENT $900M to $1B invested per year ✓ $818 million in Capital Investments over last 12 months (1) ✓ FY22 CAPEX Guidance of $900 million to $1 billion RECENT DEPLOYMENT OF CAPITAL Repurchased 2.1 million shares totaling $100 million in Q1 FY22 Announced Longview box plant investment STRATEGIC CAPITAL INVESTMENTS Improve competitive position and supports organic growth in attractive end markets ✓ TT Completed Florence and Tres Barras projects Announced new corrugated box plant in Longview Washington SHARE REPURCHASES Opportunistic when share price trades below intrinsic value Up to $500 million of stock repurchase over the next several months CAPITAL ALLOCATION FOUNDATION BUILT ON: Strong Cash Flow Generation Core Principles Flexibility 90 DIVIDEND Sustainable and growing dividend ✓ Raised dividend 25% since February including October announced increase DEBT AND LEVERAGE Maintain leverage target ratio (2) of 2.25 to 2.5X ✓ Paid down $1.3 billion of adjusted net debt in FY21(2) ✓ Net leverage of 2.40 times (2) NEAR TERM CAPITAL DEPLOYMENT PRIORITIES ■ Invest in our business through high-return, organic projects Opportunistically and aggressively repurchase shares Maintain target leverage ratio COMPLETED FIRST PHASE OF STRATEGIC REVIEW More details around strategic review at Investor Day 8 1) 2) TTM as of December 31, 2021 Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix. WestRock#9OUR PATH FORWARD 6 TRANSFORMATION AGENDA DESIGNED TO IMPROVE OUR OVERALL ROIC GROWTH MARGIN IMPROVEMENT DISCIPLINED USE OF CAPITAL IMPROVING OPERATIONAL EFFECTIVENESS INVESTING IN OUR BUSINESS FOCUSING ON PRODUCTIVITY + EFFICIENCY WestRock#1010 ALEX PEASE CHIEF FINANCIAL OFFICER WestRock#1111 Q1 FY22 WESTROCK RESULTS FIRST QUARTER Q1 YEAR-OVER-YEAR HIGHLIGHTS $ IN MILLIONS, EXCEPT PER SHARE ITEMS FY22 FY21 ☐ Net Sales $4,952 $4,402 Net sales up 12.5% in the quarter ☐ Consolidated Adjusted EBITDA(1) $680 $670 % Margin (1) Capital Expenditures Adjusted Free Cash Flow(1) 13.7% 15.2% $173 $171 $84 $562 ☐ Adjusted Earnings Per Diluted Share(1) $0.65 $0.61 CONSOLIDATED ADJUSTED EBITDA ($ IN MILLIONS) (1) +$10 600 $670 $680 (33) (520) (37) Q1 FY21 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 ☐ ◉ Pricing realization exceeded cost inflation Higher inflation led by recycled fiber, energy, virgin fiber and freight costs Repurchased $100 million in stock in Q1 FY22 Leverage remains within targeted levels Largest scheduled maintenance quarter in company's history; partially drove year-over-year margin compression Free Cash Flow primarily impacted by reversal of one-time COVID related benefits 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. WestRock#12Q1 FY22 CORRUGATED PACKAGING RESULTS FIRST QUARTER $ IN MILLIONS, EXCEPT PER SHARE ITEMS FY22 FY21 Segment Sales(1) $2,144 $1,923 Adjusted EBITDA (2) $289 $348 % Margin (1) (2) 13.5% 18.1% ☐ ADJUSTED EBITDA ($ IN MILLIONS) (2) -$59 277 $348 $289 (43) (230) (63) Q1 FY21 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 1) Excludes white top trade sales 12 2) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. ◉ Q1 YEAR-OVER-YEAR HIGHLIGHTS Segment sales up 11.5% in the quarter driven by strong price/mix ■ Volumes impacted by lower shipments year-over-year due to supply chain and labor challenges Higher inflation led by freight, energy, chemical and labor costs Productivity negatively impacted by COVID-related absenteeism, supply chain constraints and highest level of scheduled maintenance in the Company's history FY22 Adjusted EBITDA margin (2) expected at or above last year WestRock#13Q1 FY22 CONSUMER PACKAGING RESULTS FIRST QUARTER $ IN MILLIONS, EXCEPT PER SHARE ITEMS FY22 FY21 Segment Sales $1,139 $1,063 Adjusted EBITDA (1) $169 $175 " % Margin (1) 14.9% 16.5% ☐ ADJUSTED EBITDA ($ IN MILLIONS)(1) -$6 50 $175 6 14 $169 (76) Q1 FY21 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 13 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. ☐ Q1 YEAR-OVER-YEAR HIGHLIGHTS Segment sales up 7.2% in the quarter driven by strong price mix and slightly higher volumes Higher inflation led by freight, energy, chemical and labor costs CPG sales remain solid ☐ Beverage and hard seltzer sales ☐ decelerated; Out-of-stock challenges remain Beauty, personal care, and spirits demand recovering as economy reopens WestRock#14Q1 FY22 GLOBAL PAPER RESULTS FIRST QUARTER Q1 YEAR-OVER-YEAR HIGHLIGHTS $ IN MILLIONS, EXCEPT PER SHARE ITEMS FY22 FY21 ☐ Segment sales up 24.0% in the quarter Segment Sales $1,353 $1,091 Adjusted EBITDA (1) $232 $152 ☐ % Margin (1) 17.2% 13.9% ☐ ADJUSTED EBITDA ($ IN MILLIONS)(1) Pricing realization exceeded cost inflation Strong performance in key strategic markets including kraft paper and other specialty grades Market demand growing Flexibility enables us to navigate supply/demand dynamics +$80 246 15 $232 $152 6 (187) Q1 FY21 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 14 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. WestRock#1515 Q1 FY22 DISTRIBUTION RESULTS FIRST QUARTER $ IN MILLIONS, EXCEPT PER SHARE ITEMS FY22 FY21 Segment Sales $325 $304 Adjusted EBITDA (1) $7 $16 % Margin (1) 2.0% 5.4% ADJUSTED EBITDA ($ IN MILLIONS)(1) -$9 26 $16 (9) Q1 FY21 (1) Volume (25) Price / Mix Inflation Productivity / Operations 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. Q1 FY22 Q1 YEAR-OVER-YEAR HIGHLIGHTS Segment sales up 6% in the quarter ■ Demand remains strong, outpacing supply ■ Profitability impacted by our suppliers' continued headwinds and one-time non-recurring cost issues Multiple initiatives underway focused on productivity and commercial excellence WestRock#16Q1 FY22 FREE CASH FLOW ■ Q1 Adjusted Free Cash Flow of $84 million(1) ■ Year-Over-Year comparison was negatively impacted by: - - Payment of short-term incentive compensation in cash vs. stock Short-term compensation higher following strong FY21 - 401K match returned to cash payments in FY22 - First payment of the deferred payroll tax associated with the CARES Act Expect FY22 to be 7th consecutive year of Adjusted Free Cash Flow greater than $1 billion (1) CONTINUE TO EXPECT STRONG CASH FLOWS IN FY22 16 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix. WestRock#17Q2 FY22 GUIDANCE Q2 FY22 $780 - $830 MILLION CONSOLIDATED ADJUSTED EBITDA (1) - $0.94 $1.08 PER SHARE Q2 FY22 ADJUSTED EPS (1) Q2 FY22 SEQUENTIAL GUIDANCE DETAILS ■ Flow through of previously published price increases across containerboard, kraft paper, SBS, CNK, CRB and URB; price realization greater than inflation ◉ Roughly flat costs quarter over quarter as improvements in energy and OCC offset by higher freight, wage and other expenses Approximately 128K tons of maintenance downtime; still at elevated maintenance levels 17 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix. WestRock#1818 STRONG DEMAND FOR FIBER-BASED PAPER AND PACKAGING PORTFOLIO MULTIPLE MARGIN UNIQUELY POSITIONED TO EXPANSION OPPORTUNITIES MEET CUSTOMER NEEDS STRONG CASH FLOW AND BALANCE SHEET DISCIPLINED AND BALANCED CAPITAL ALLOCATION $ $$$ CREATING VALUE WestRock#19APPENDIX 19 WestRock 19#20PROVEN TRACK RECORD OF GROWTH ($ IN BILLIONS EXCEPT EPS) FY16 FY21 CAGR FY22E Net Sales (1) $14.2 $18.7 6% $20.0 to $21.0 Consolidated Adjusted $2.3 $3.0 6% $3.3 to $3.7 EBITDA (2) Consolidated Adjusted EBITDA Margin (1)(2) 16% 16% 16.5% to 17.5% RESILIENT BUSINESS MODEL ■ Broadest portfolio of paper and packaging solutions ■ Attractive margins. ■ Consistent cash flow Adjusted EPS(2) $2.52 $3.39 6% $4.00 to $5.10 ☐ Strong balance sheet Adjusted Free Cash Flow (2) $1.0 $1.5 8% >$1.3 Within Targeted Net Leverage Ratio (2) 2.2x 2.38x Range 1) 20 2) POSITIONED FOR CONTINUED SALES, EARNINGS AND FREE CASH FLOW GROWTH As reported: Including recycling sales in FY16. Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix WestRock#2121 Q1 YEAR OVER YEAR BRIDGES CONSOLIDATED ADJUSTED EBITDA (¹) ($ IN MILLIONS) DISTRIBUTION GLOBAL PAPER CONSUMER PACKAGING CORRUGATED PACKAGING $348 Q1 FY21 $175 Q1 FY21 -$59 277 $289 (43) (230) (63) Volume Price / Mix Inflation Productivity / Operations Q1 FY22 -$6 50 (76) 14 $169 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 +$80 246 15 $232 $152 6 (187) Q1 FY21 Volume Price / Mix Inflation Productivity / Operations Q1 FY22 (-$9 26 $16 Q1 FY21 (1) Volume (9) $7 Price / Mix (25) Inflation Productivity / Operations Q1 FY22 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures and Reconciliations in the Appendix. WestRock#2222 1) PRICING AND MIX MANAGEMENT OUTPACING INFLATION YEAR-OVER-YEAR ($ Millions) YEAR-OVER-YEAR PRICE/MIX AND INFLATION $800 $600 $600 $520 ■ Price/Mix $433 $389 $400 ■Inflation $320 $201 $200 $77 $88 $113 $12 $0 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 ◉ HIGHLIGHTS Q1 FY22 price/mix realization of $600 million year/year; $80 million in excess of inflation Published price increases since Q4 FY20(1): ✓ +$160/ton North America Containerboard ✓ +$250/ton CNK ✓ + $300/ton SBS folding carton grades ✓ + $300/ton SBS plate and cup stock grades ✓ +$270/ton CRB Guidance reflects flow through of published price increases in kraft paper; higher export containerboard prices ◉ Key inflation drivers include fiber, freight, energy, and chemicals PRICING FLOW THROUGH EXPECTED TO OUTPACE INFLATION FOR FY22 As of October 15, 2021 WestRock#2323 ADJUSTED FREE CASH FLOW ADJUSTED FREE CASH FLOW(1) ($ IN BILLIONS) $1.0 $1.2 $1.5 $1.2 $1.0 STRONG FREE CASH FLOW $1.5 >$1.3 ■ FY22 Adjusted Free Cash Flow expected to be >$1.3 billion(1) FY22 expected to be 7th straight year with Adjusted Free Cash Flow above $1 billion(1) ■ Strong balance sheet with leverage within target of 2.25x to 2.50x FY16 FY17 FY18 FY19 FY20 FY21 FY22E 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix. WestRock#24ADDITIONAL GUIDANCE FY22 GUIDANCE FY22 GUIDANCE Q2 FY22 Depreciation & Amortization Approx. $365 million Net Interest Expense and Interest Income Approx. $85 million Effective Adjusted Book Tax Rate (1) 23%-25% Adjusted Cash Tax Rate(1) Share Count FULL YEAR Approx. $1.48 billion Approx. $350 million Approx. 25% Approx. 25% Approx. 267 million Approx. 270 million MILL DOWNTIME SCHEDULE (TONS IN THOUSANDS) MAINTENANCE Full Q1 Q2 Q3 Q4 Year FY22 Maintenance 192 128 58 12 390 FY21 Maintenance 105 65 119 12 301 FY20 Maintenance 146 105 21 102 374 24 1) Non-GAAP Financial Measure. See Non-GAAP Financial Measures in the Appendix WestRock#2525 KEY COMMODITY ANNUAL CONSUMPTION VOLUMES KEY COMMODITY ANNUAL CONSUMPTION VOLUMES APPROX. FY22 ANNUAL CONSUMPTION VOLUMES Commodity Category Recycled Fiber (tons millions) Wood (tons millions) Natural Gas (MMBTU) Electricity (kwh billions) Polyethylene (lbs millions) Caustic Soda (tons thousands) Starch (lbs millions) SENSITIVITY ANALYSIS Volume 5.6 36 91 6.1 37 245 600 Approx. Category Increase in Spot Price Annual EPS Impact Recycled Fiber (tons millions) +$10.00/ton ($0.16) Natural Gas (MMBTU) +$0.25/ MMBTU ($0.06) FX Translation Impact +10% USD Appreciation ($0.07) WestRock#2626 NON-GAAP FINANCIAL MEASURES ADJUSTED EARNINGS PER DILUTED SHARE We use the non-GAAP financial measure "adjusted earnings per diluted share," also referred to as "adjusted earnings per share" or "Adjusted EPS", because we believe this measure provides our board of directors, investors, potential investors, securities analysts and others with useful information to evaluate our performance since it excludes restructuring and other costs and other specific items that we believe are not indicative of our ongoing operating results. Our management and board of directors use this information to evaluate our performance relative to other periods. We believe the most directly comparable GAAP measure is Earnings per diluted share. ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW We use the non-GAAP financial measures "adjusted operating cash flow" and "adjusted free cash flow" because we believe these measures provide our board of directors, investors, potential investors, securities analysts and others with useful information to evaluate our performance relative to other periods because they exclude certain cash restructuring and other costs, net of tax that we believe are not indicative of our ongoing operating results. We believe adjusted free cash flow provides greater comparability across periods by excluding capital expenditures. We believe the most directly comparable GAAP measure is net cash provided by operating activities. CONSOLIDATED ADJUSTED EBITDA AND CONSOLIDATED ADJUSTED EBITDA MARGINS We use the non-GAAP financial measures "Consolidated Adjusted EBITDA" and "Consolidated Adjusted EBITDA margins", along with other factors, to evaluate our performance against our peers. We believe that board of directors, investors, potential investors, securities analysts and others use these measures to evaluate our performance relative to our peers. Management believes that the most directly comparable GAAP measure to "Consolidated Adjusted EBITDA" (formerly referred to as Adjusted Segment EBITDA) is "Net income attributable to common stockholders". It can also be derived by adding together each segment's "Adjusted EBITDA❞ plus "Non-allocated expenses". "Consolidated Adjusted EBITDA Margins" is calculated as "Consolidated Adjusted EBITDA" divided by Net Sales. LEVERAGE RATIO, NET LEVERAGE RATIO, TOTAL FUNDED DEBT AND ADJUSTED TOTAL FUNDED DEBT We use 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. We believe our 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. We define 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. As of December 31, 2021, our leverage ratio was 2.50 times. 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. We define "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. As of December 31, 2021, our net leverage ratio was 2.40 times. ADJUSTED NET DEBT We believe "adjusted net debt" 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. FORWARD-LOOKING GUIDANCE We are not providing a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, merger and acquisition-related expenses, restructuring expenses, asset impairments, litigation settlements, changes to contingent consideration and certain other gains or losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. In addition, we have not quantified future amounts to develop our leverage ratio target but have stated our commitment to an investment grade credit profile in order to generally maintain the target. This target does not reflect Company guidance. WestRock#2727 ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE RECONCILIATION As reported (1) Restructuring and other items Losses at closed plants and transition costs Gain on sale of certain closed facilities Adjustments/Adjusted Results Noncontrolling interests Adjusted Net Income 1) Q1 FY22 Consolidated Results Pre-Tax Tax Net of Tax EPS $ 242.4 $ (58.6) $ 183.8 $ 0.68 2.3 (0.5) 1.8 0.01 0.3 (0.1) 0.2 0.00 (14.4) 3.6 (10.8) (0.04) 230.6 (55.6) 175.0 0.65 (1.5) 173.5 The as reported results for Pre-Tax, Tax, Net of Tax and EPS are equivalent to the line items "Income before income taxes", "Income tax expense", "Consolidated net income" and "Earnings per diluted share", respectively, as reported on the statements of income. WestRock#2828 ($ in millions, except per share data) Q1 FY21 Consolidated Results ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE RECONCILIATION As reported (1) COVID-19 relief payments Restructuring and other items Pre-Tax Tax Net of Tax EPS $ 202.8 (50.3) 152.5 $ 0.57 22.0 (5.4) 16.6 0.06 7.7 (1.9) 5.8 0.02 Loss on extinguishment of debt 1.1 (0.3) 0.8 0.01 Losses at closed plants, transition and start-up costs 0.4 (0.1) 0.3 Accelerated depreciation on major capital projects and certain plant closures 0.2 0.2 Gain on sale of investment (14.7) 2.1 (12.6) (0.05) Gain on sale of certain closed facilities (0.9) 0.2 (0.7) Brazil indirect tax (0.9) 0.3 (0.6) Adjustments/Adjusted Results 217.7 (55.4) $ 162.3 0.61 Noncontrolling interests (0.5) Adjusted Net Income 161.8 1) The as reported results for Pre-Tax, Tax, Net of Tax and EPS are equivalent to the line items "Income before income taxes", "Income tax expense", "Consolidated net income" and "Earnings per diluted share", respectively, as reported on the statements of income. WestRock#29($ in millions, except per share data) Full Year FY21 Consolidated Results Pre-Tax Tax Net of Tax EPS ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE RECONCILIATION As reported (1) Restructuring and other items $ 1,085.9 $ (243.4) $ 842.5 $ 3.13 31.5 (7.7) 23.8 0.09 COVID-19 employee payments 22.0 (5.4) 16.6 0.06 Grupo Gondi option 22.5 (6.7) 15.8 0.06 Ransomware recovery costs, net of insurance proceeds 18.9 (4.7) 14.2 0.05 Accelerated compensation - former CEO 11.7 11.7 0.04 Loss on extinguishment of debt 9.7 (2.4) 7.3 0.03 Losses at closed plants, transition and start-up costs 3.0 (0.6) 2.4 0.01 Accelerated depreciation on major capital projects and 0.7 (0.2) 0.5 95 certain plant closures Gain on sale of investment (16.0) 2.4 (13.6) (0.05) Gain on sale of saw mill (16.5) 8.3 (8.2) (0.03) Gain on sale of certain closed facilities (0.9) 0.2 (0.7) Brazil indirect tax claim (0.9) 0.3 (0.6) MEPP liability adjustment due to interest rates (0.4) 0.1 (0.3) Adjustments/Adjusted Results $ 1,171.2 $ (259.8) 911.4 $ 3.39 Noncontrolling interests (4.2) Adjusted Net Income $ 907.2 29 29 1) The as reported results for Pre-Tax, Tax, Net of Tax and EPS are equivalent to the line items "Income before income taxes", "Income tax expense", "Consolidated net income" and "Earnings per diluted share", respectively, as reported on the statements of income. WestRock#30ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE RECONCILIATION ($ in millions, except per share data) As reported (1) Restructuring and other items Non-cash pension risk transfer expense 1) 30 2) Full Year FY16 Consolidated Results Pre-Tax Tax Net of Tax EPS $ 244.6 (89.8) 154.8 $ 0.59 366.4 (116.0) 250.4 0.97 370.7 (140.9) 229.8 0.89 Losses at closed plants and transition costs 23.3 (6.6) 16.7 0.07 Inventory stepped-up in purchase accounting, net of LIFO 8.1 (2.5) 5.6 0.02 Land and Development operating results including impairment (5.6) 2.2 (3.4) (0.01) Gain on extinguishment of debt (2.7) 0.8 (1.9) (0.01) Gain on investment in Grupo Gondi(2) Other Adjustments/Adjusted Results (12.1) 10.6 (1.5) (0.01) 1.8 (0.6) 1.2 0.01 EA $ 994.5 $ (342.8) 651.7 2.52 Noncontrolling interests (2.1) Adjusted Net Income $ 649.6 The as reported results for Pre-Tax, Tax, Net of Tax and EPS are equivalent to the line items "Income from continuing operations before income taxes", "Income tax expense", "Income from continuing operations" and "Diluted earnings per share from continuing operations", respectively, as reported on the statements of operations. Impacted by non-deductible goodwill WestRock#31RECONCILIATION OF NET INCOME ΤΟ CONSOLIDATED ADJUSTED EBITDA ($ in millions) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Net income attributable to common stockholders $ 152.0 $ 112.5 $ 250.1 $ 323.7 $ 182.3 Adjustments:(¹) Less: Net Income attributable to noncontrolling interests Income tax expense Other (income) expense, net Loss on extinguishment of debt Interest expense, net Restructuring and other costs Multiemployer pension withdrawal income Gain on sale of certain closed facilities Depreciation, depletion, and amortization Other adjustments Consolidated Adjusted EBITDA Net Sales Net income margin Consolidated Adjusted EBITDA Margin 0.5 50.3 1.9 0.9 0.9 1.5 30.5 77.4 85.2 58.6 (20.8) 13.4 (6.4) 2.9 (0.2) 1.1 8.6 93.8 83.5 102.5 92.5 86.7 7.7 5.2 6.9 11.7 2.3 (2.9) (3.3) (0.9) (14.4) 364.5 361.4 369.0 365.1 366.5 $ 21.6 669.8 32.1 10.6 640.5 $ 811.0 $ (9.8) 877.9 0.3 680.3 $ 4,401.5 $ 4,437.8 $ 4,816.3 5,090.5 4,952.2 3.5% 15.2% 2.5% 14.4% 5.2% 16.8% 6.4% 3.7% 17.2% 13.7% - 31 1) Schedule adds back expense or subtracts income for certain financial statement and segment footnote items to compute Consolidated Adjusted EBITDA. WestRock#32RECONCILIATION OF NET INCOME ΤΟ CONSOLIDATED ADJUSTED ($ in millions) Net income (loss) attributable to common stockholders Adjustments: (1) Less: Net Income attributable to noncontrolling interests Income tax expense EBITDA FY16 FY21 $ (396.3) $ 838.3 6.4 4.2 89.8 243.4 Other income, net (14.4) (10.9) (Gain) loss on extinguishment of debt (2.7) 9.7 Interest expense, net 212.5 372.3 Restructuring and other costs 366.4 31.5 Multiemployer pension withdrawal income (2.9) Pension risk transfer expense 370.7 Gain on sale of certain closed facilities (0.9) Loss from discontinued operations 544.7 Depreciation, depletion, and amortization 1,084.7 1,460.0 Other adjustments 25.8 54.5 Consolidated Adjusted EBITDA $ 2,287.6 $ 2,999.2 Net Sales $ 14,171.8 $ 18,746.1 Net income margin Consolidated Adjusted EBITDA Margin -2.8% 16.1% 4.5% 16.0% 32 1) Schedule adds back expense or subtracts income for certain financial statement and segment footnote items to compute Consolidated Adjusted EBITDA. WestRock#3333 ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW RECONCILIATION ($ in millions) Q1 FY22 Q1 FY21 Net cash provided by operating activities $ 252.8 $ 719.4 Plus: Cash Restructuring and other costs, net of income tax benefit of $1.4, $4.2 and $9.1 4.2 12.8 Adjusted Operating Cash Flow Less: Capital expenditures Adjusted Free Cash Flow 257.0 732.2 (173.1) (170.7) 83.9 561.5 ($ in millions) Net cash provided by operating activities Plus: Retrospective accounting policy adoptions Plus: Cash Restructuring and other costs, net of income tax benefit of $70.4,$36.4, $14.5, $29.9, $19.4 and $9.1 respectively Adjusted Operating Cash Flow Less: Capital expenditures Adjusted Free Cash Flow FY16 FY17 FY18 FY19 $ 1,223.3 465.1 $ 1,463.8 436.7 $ 1,931.2 489.7 $ 2,310.2 FY20 $ 2,070.7 FY21 $ 2,279.9 139.3 99.5 41.3 102.7 59.8 28.2 1,827.7 (796.7) 2,000.0 (778.6) $ 1,031.0 $ 1,221.4 2,462.2 (999.9) $ 1,462.3 2,412.9 (1,369.1) 2,130.5 2,308.1 (978.1) (815.5) $ 1,043.8 $ 1,152.4 $ 1,492.6 WestRock#34TTM CREDIT AGREEMENT EBITDA TTM ($ in millions) Sep. 30, 2016 TTM Sep. 30, 2021 TTM Dec. 31, 2021 Net loss attributable to common stockholders $ 154.8 838.3 868.6 Interest expense, net 184.0 349.0 343.0 Income tax expense Depreciation, depletion and amortization 89.8 243.4 251.7 1,089.3 1,460.0 1,462.0 Additional permitted charges and acquisition EBITDA (1) 804.1 2,322.0 $ 276.8 221.4 3,167.5 $ 3,146.7 TTM CREDIT AGREEMENT EBITDA Credit Agreement EBITDA TOTAL DEBT, FUNDED DEBT AND LEVERAGE RATIO ($ in millions, except ratios) Current portion of debt Long-term debt due after one year Total debt Less: FV step up and deferred financing fees Less: short-term and long-term chip mill obligation Less: other adjustments to funded debt Total Funded Debt LTM credit agreement EBITDA Leverage Ratio Total funded debt Less: cash and cash equivalents Adjusted Total Funded Debt Net Leverage Ratio Sep. 30, 2016 Sep. 30, 2021 Dec. 31, 2021 $ 292.9 168.8 236.8 5,496.3 8,025.3 7,996.4 5,789.2 8,194.1 8,233.2 (305.8) (159.8) (156.9) (93.1) (92.0) (75.7) (123.7) (130.4) $ 5,407.7 7,817.5 $ 7,853.9 $ 2,322.0 $ 3,167.5 $ 3,146.7 2.33x 2.47x 2.50x $ 5,407.7 $ 7,817.5 (340.9) (290.9) $ 5,066.8 7,526.6 2.18x 2.38x E 7,853.9 (291.3) 7,562.6 2.40x 34 1) Additional Permitted Charges primarily include restructuring and other costs, and certain non-cash and other items as allowed under the credit agreement WestRock#3535 ADJUSTED NET DEBT ($ in millions) Sep. 30, 2020 Sep. 30, 2021 Dec. 31, 2021 Current portion of debt Long-term debt due after one year Total debt Less: Cash and cash equivalents 222.9 168.8 $ 236.8 9,207.7 8,025.3 7,996.4 EA $ 9,430.6 $ 8,194.1 $ 8,233.2 (251.1) (290.9) (291.3) Less: Fair value of debt step-up (208.9) (192.4) (188.2) Adjusted Net Debt $ 8,970.6 $ 7,710.8 $ 7,753.7 Adjusted Net Debt reduction in FY21 1,259.8 WestRock#36WestRock WestRock 36