$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.