$4 Billion EBITDA Target Timing
Q: When will IP achieve the $4 billion EBITDA target, and what's the role of the GCF business?
A: Management stated the $4 billion EBITDA target is a mid-cycle number that's "not forever away," though they can't specify the exact timing due to legal constraints related to the DS Smith acquisition. " They clarified that the Global Cellulose Fibers (GCF) business has a very small impact on this target and is under strategic review. "

Excluding DS Smith from EBITDA Growth
Q: Does the $4 billion EBITDA target include DS Smith's EBITDA?
A: No, the $4 billion EBITDA growth target is for the current IP portfolio and does not include DS Smith's EBITDA contribution. "

CapEx Budgeting for EBITDA Growth
Q: Are you properly budgeting CapEx to achieve the significant EBITDA growth?
A: IP plans to invest between $1 billion and $1.1 billion on a normalized basis, similar to historical levels. " They believe they can support the strategy within this range by reallocating resources rather than increasing overall CapEx. "

Potential Capacity Reductions
Q: Will there be capacity reductions as part of the 80/20 strategy?
A: Management indicated that matching capacity with demand is necessary and adjustments should be expected. " They emphasized the need to be thoughtful and appropriate in aligning structural costs with opportunities. "

Short-Term Challenges and Box Volumes
Q: Why is there significant short-term pain and decline in box volumes?
A: The decline is due to both the go-to-market strategy and reliability issues, each contributing about 50% to the volume loss. " Investments in reliability will take time to yield results, causing some choppiness in the next few quarters. "

Reliability Spending Impact
Q: How does reliability spending affect costs and future performance?
A: A significant portion of the £80 million step-up in costs is tied to reliability spending. " These investments are crucial for improving capability, satisfying customer needs, and opening up capacity over the next several quarters. "

Integration of DS Smith with 80/20 Strategy
Q: How will you apply the 80/20 strategy to DS Smith without adding complexity?
A: IP plans to treat DS Smith as its own platform in Europe, integrating it in three parts: simple integration in the Americas, DS Smith integrating IP's European footprint, and careful integration at the corporate level. " They aim to avoid unnecessary administrative burdens while focusing on region-specific 80/20 efforts. "

Cultural Reset and Internal Buy-In
Q: Do you have internal buy-in and the right people to execute the new strategy?
A: Management expressed high confidence in their team's capability and willingness. " There's pent-up excitement and strong engagement to embrace the 80/20 methodology, with a readiness to make tough decisions and focus on winning. "

Infrastructure and KPIs for Capital Allocation
Q: Is the infrastructure in place to make informed capital allocation decisions?
A: IP is improving clarity of metrics that drive results, focusing on key performance indicators like safety, quality, on-time delivery, productivity, and profitable growth. " They acknowledge the need to better align incentives and enhance sales talent to support strategic investments. "

Go-to-Market Strategy Outcomes
Q: Are you confident in the payoff of the new go-to-market strategy despite market share losses?
A: Management is tracking the strategy closely and believes they are on track with expectations. " While acknowledging a lag in reliability improvements, they are focused on investing in reliability to reduce customer attrition and are aware of the challenges ahead. "

Box Shipment Outlook and Constraints
Q: What is the expected outlook for IP box shipments this year?
A: Management could not provide specific forecasts for the fourth quarter due to legal responsibilities under the UK takeover code related to the DS Smith transaction. " They anticipate some choppiness and are monitoring how negotiations and market conditions play out. "