Sonoco Details Financial Targets and Strategic Priorities

• 2014 Base EPS Expected to Achieve Record $2.51 or Slightly Higher
• 2015 Base EPS Estimate Established at Record Range of $2.63 to $2.73
• Free Cash Flow Estimated at $154 Million in 2015

HARTSVILLE, SC – Sonoco (NYSE:SON)
President and Chief Executive Officer Jack Sanders and members of the
Company’s senior leadership team today provided the investment
community in New York with an overview of the Company’s financial
outlook and strategic priorities.

Company Expects 2014 Base EPS to Exceed Previous Guidance; Record 2015
Outlook Targeted

Sonoco expects fourth quarter and full-year 2014 base earnings to be at
the high end or slightly higher than the Company’s previously announced
guidance of $.59 to $.64 and $2.46 to $2.51 per diluted share,
respectively. Last year, the Company reported fourth quarter and
full-year 2013 base earnings of $.58 and $2.30 per diluted share. Base
earnings and base earnings per diluted share are non-GAAP financial
measures adjusted to remove restructuring charges, asset impairment
charges, acquisition expenses and other items, if any, the exclusion of
which the Company believes improves comparability and analysis of the
underlying financial performance of the business.

“We are pretty optimistic as we close the book on what will be a record
performance in 2014. The start to the fourth quarter has been very
encouraging, particularly in our consumer-related businesses, and now
we believe we should achieve or exceed the high end of our guidance for
the quarter and 2014, including some recovery of excess costs
associated with a previously mentioned flexible packaging material
issue,” said Sanders, noting the Company’s previous record base
earnings was $2.38 in 2007. “This would be the second year in a row we
have achieved our base earnings target and it is a pattern we want to
continue.”

Commenting on 2014’s performance, Sanders said, “Our efforts to change
Sonoco for the better are allowing us to deliver on our commitments.
Through the first nine months of 2014, sales, gross profits and base
earnings are running at record levels, with base earnings up 9 percent.
We are very pleased with the solid improvement in our Paper/Industrial
Converting segment with operating profits up nearly 20 percent and
continued solid performance in our Consumer businesses with operating
profit up year over year despite tepid growth in packaged food sales.”

Sonoco estimates 2015 base earnings per diluted share to be in the
range of $2.63 to $2.73, with a projected midpoint target of $2.68 per
diluted share. According to Barry Saunders, vice president and chief
financial officer, the Company’s mid-point guidance assumes $.28 per
share improvement from the Company’s base operations stemming from a
combination of volume growth, a positive price/cost relationship,
productivity gains and a reduced share count. In addition, the Company
expects to achieve $.10 per share in earnings accretion from the
recently completed acquisition of Weidenhammer Packaging Group.
Offsetting these improvements is $.21 per share in projected negative
items, driven by an estimated $.09 in higher pension expense, along
with higher depreciation and other expenses as well as the negative
effect of foreign exchange.

“Our 2015 projection indicates Sonoco should have back to back record
base earnings for the first time since 2006 and 2007,” Sonoco CEO
Sanders said.

Strong Free Cash Flow Forecasted

CFO Saunders said Sonoco is projecting to generate approximately $424
million in cash from operations in 2014 and free cash flow of
approximately $110 million after spending $185 million on capital and
$129 million on cash dividends to shareholders. (Free cash flow is
defined as cash flow from operations minus capital expenditures and
cash dividends.)

For 2015, Sonoco is projecting cash from operations of $505 million and
free cash flow of $154 million. Saunders pointed out the higher cash
from operations is being driven by improved earnings and the add-back
of depreciation, both of which are favorably impacted by the addition
of Weidenhammer and lower pension contributions. Capital spending is
expected to increase to approximately $218 million in 2015 due
primarily to higher investments in the Company’s consumer-related
businesses. After paying out a projected $134 million in cash dividends
to shareholders, free cash flow is expected to be used primarily to
reduce debt.

Strategy Focusing Resources on Growing and Optimizing Targeted
Businesses

CEO Sanders said Sonoco is investing capital, people and other
resources to drive long-term growth in its Consumer Packaging and
Protective Solutions segments.

“As we think about priorities going forward, one of the highest is
certainly the successful integration of Weidenhammer. In addition, we
are focused on expanding our flexible packaging capacity in North
America where volume has grown between 4 percent and 6 percent over the
past few years and we are very close to finalizing an acquisition of a
majority stake in a flexible packaging company in Brazil,” he said. “In
addition, we are investing to meet higher composite can demand with new
capacity additions in Poland, Malaysia and China in 2014 with further
capacity expansion planned for Malaysia and China. Finally, in
Protective Solutions we are experiencing strong growth in molded
components serving the automotive industry and are working to add new
capacity in 2015.”

Sanders also pointed out Sonoco’s i6(TM) innovation process, which is a
systematic approach to drive market-focused organic growth, has been
introduced to more than 20 of its largest customers and the Company is
working on more than 30 projects to help grow their brands.

In addition to accelerating growth, Sanders said Sonoco is optimizing
its portfolio of businesses serving mature, slower growth markets.

“Optimize means to perfect. These businesses remain very important with
solid market shares, good contribution margins and strong cash flow. We
will continue to invest in these businesses to improve productivity and
margins, but not necessarily to expand capacity,” he said.

Conclusion

Sanders concluded the Company’s outlook and strategy review by saying,
“For Sonoco, change is not just inevitable, it is a necessity. It is
our unique opportunity to actively look for ways to harness the power
of our portfolio, our processes and our people in the service of our
mission. Change also creates the fertile environment to optimize
businesses through new processes, new systems and new ways of
controlling costs. If we can change the way we look at things, then the
things we look at will change for the better.”

Telephonic Replay

A telephonic replay of the investor conference will be available
starting at noon Eastern today, to U.S. callers at 888-286-8010 and
international callers at +617-801-6888. The replay passcode for both
U.S. and international calls is 85098386. The archived call will be
available through December 15, 2014. The webcast will be archived for
90 days on Sonoco’s Investor Relations website along today’s
presentations.

About Sonoco:

Founded in 1899, Sonoco is a global provider of a variety of consumer
packaging, industrial products, protective packaging, and displays and
packaging supply chain services. With annualized combined sales of
approximately $5.4 billion, the Company has more than 21,000 employees
working in more than 340 operations in 34 countries, serving some of
the world’s best known brands in some 85 nations. Sonoco is a proud
member of the 2014/2015 Dow Jones Sustainability World Index. For more
information on the Company, visit our website at www.sonoco.com.