EXHIBIT 99.1
November 2003
Strategy
“Satisfy our customers completely. Invest for competitive advantage. Empower action and change. Commit to high performance. Simple but powerful fundamentals that are driving our results.”
- James A. Rubright, Rock-Tenn Company Chairman and Chief Executive Officer 2001 Annual Report
Reasons to Invest
| | • | | Strong and improving competitive position in stable markets |
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| | • | | Targeted acquisitions |
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| | • | | Outperforming peers |
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| | • | | Attractive valuation |
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| | • | | Strong operating cash flow and return to investors |
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| | • | | Businesses well positioned for sustained economic growth yet protected on downside |
Operating Overview
Packaging Segment- Sales up 11% in FY03
Folding Carton and Interior Packaging:
| | • | | $800 million revenue |
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| | • | | 5th largest folding carton manufacturer |
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| | • | | Market leader in solid fiber interior packaging for beer, wine, food and specialty products |
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| | • | | Superior sales growth compared to industry — 4Q03 sales up 20% |
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| | • | | Diverse customer base |
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| | • | | 5+% return on sales |
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| | • | | Acquisitions of Cartem-Wilco and Pacific Coast Packaging during FY 2003 |
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| | • | | Capital expenditures to improve competitive position |
Merchandising Displays & Corrugated Packaging Segment
Alliance Display and Corrugated Packaging
| | • | | $285 million sales |
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| | • | | Market leader in point-of-purchase displays |
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| | • | | 3 sheet plants and one corrugator serve growing Southeastern market for graphically demanding products |
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| | • | | 25 % display sales growth FY 1998 — FY 2003 |
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| | • | | 25% increase in segment operating income FY 1999 – FY 2003 |
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| | • | | 10-15% return on sales |
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| | • | | Serves major consumer products companies |
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| | • | | “Concept-to-Consumer” business model |
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| | • | | Acquisitions of ADC and Athena in FY 2002 |
Paperboard Segment
Recycled Paperboard
| | • | | $515 million sales- 3rd largest US producer of recycled boxboard (excludes linerboard and corrugated medium) |
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| | • | | Clay coated: 500,000 tons shipped, sell 45-50% internally (excludes corrugated medium) |
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| | • | | Uncoated: 330,000 tons shipped, sell 60-65% internally (excludes Seven Hills) |
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| | • | | 25-30% of uncoated board used by RTS |
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| | • | | 25-30% of uncoated board used by laminated paperboard products |
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| | • | | Gypsum facing J.V. with LaFarge: 86,000 tons |
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| | • | | Corrugating Medium Mill: 170,000 tons |
Operating Variables
| | • | | Recovered Paper: $10/ton = $10,000,000/year |
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| | • | | Energy/ natural gas: $1 /MMBtu = $5,000,000/year |
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| | • | | Interest rates: 100 basis points = $3.5 million/year |
Investment Metrics
35 million shares outstanding
$532 million market capitalization @$15.20 per share
$502 million total debt (excluding fair value hedge)
$0.34/share dividend/2.2% yield
Dividend increase last two fiscal years
37% Institutional Ownership
