2012 in Review

The leadership team has evolved

The Company added two new Directors, Richard Wambold and Jerry Whitaker, to its Board. Additionally, T.J. Dermot Dunphy, who served as Chief Executive Officer of Sealed Air from 1971 through 2000, is retiring from the Board in May 2013. Dermot’s contributions to Sealed Air’s continued success are numerous. His unwavering commitment to geographic expansion and innovation has helped construct a foundation on which Sealed Air will build in the years to come.

We were very pleased to have Jerome Peribere join the Company as President and Chief Operating Officer and Director, effective September 1, 2012. Also, in August, Bill Hickey announced that he would retire from the Company’s management team in March 2013 after thirty-three years of service, including thirteen years as President and Chief Executive Officer. We are grateful to Bill for his valued counsel and dedication to Sealed Air throughout his tenure and would like to express our appreciation for his many contributions to this great Company. Mr. Peribere assumed the role of Chief Executive Officer upon Mr. Hickey’s retirement in March 2013.

Our senior leadership team has also experienced meaningful changes with the addition of Carol Lowe as Senior Vice President and Chief Financial Officer, Dr. Ilham Kadri as President of our Institutional and Laundry division, and Carole De Mayo as Vice President and Chief Human Resources Officer. Additionally, Mr. Peribere streamlined the Company’s decision making with a new executive committee comprised of Emile Chammas, Senior Vice President and Chief Supply Chain Officer; Karl Deily, President of our Food and Beverage division; Ryan Flanagan, President of our Protective Packaging division; Ruth Roper, Vice President of Strategy, Development and Medical Applications; and Yagmur Sagnak, President of our Asia, Middle East, Africa and Turkey region; as well as Ms. Lowe and Dr. Kadri.

We have also made significant operational changes to our business

We took a fresh look at our Company following the Diversey acquisition and decided to realign our business. We created a new segment structure consisting of three global business divisions: Food & Beverage, Institutional & Laundry, and Protective Packaging, and “Other” category comprising Medical Applications and New Ventures.

During the fourth quarter of 2012, we began to operate under this new structure, which better aligns our organization to meet customer needs, maximize profitable growth and focus on targeted growth opportunities and represents a productive way to manage our Company’s performance. This change is an important next step in the Diversey integration.

Our 2012 full-year financial results reflect a focus on profitable growth

Looking back at 2012, our full-year financial results demonstrated our ability to effectively execute and manage the factors within our control in a challenging macroeconomic environment. Our focus on profitable growth continued within all of Sealed Air’s divisions, resulting in improved adjusted EBITDA and margins on a year-over-year basis.

For 2012 we reported $7.6 billion in total sales, with our Food & Beverage division representing 49%, Institutional & Laundry 28%, and Protective Packaging 21%. We continue to make progress in achieving net sales growth through geographic expansion, and by developing new and expanded customer relationships, and demonstrating the strength of our sustainability value proposition to our customers.

We continued to recognize strong cost synergies as a result of the Diversey integration, with full year cost synergies of over $100 million. We have also initiated a range of initiatives that affect our pricing structure and policies across all our divisions, and these will gain momentum as we go forward in 2013.

As we transition into 2013, our momentum is increasing

In 2012 alone, we commercialized more than one dozen products that drove new sales across multiple regions. Many of our innovations were fostered by customer and consumer demand for greater convenience features on packaging—such as our Cryovac Grip & Tear bags^®; easy-open, reclose on roll stock; and our new Multi-Seal^® FoldLOK pouch system and ovenable materials. Among the products we are most excited about are the grip-and-tear bags, which are designed to provide a convenient feature for opening a vacuum package. Our Institutional & Laundry division has introduced Suma Combi™—a unique product that combines detergent and rinse aid into one product for mechanical ware washing. The combined product cleans, rinses and dries in the same manner as separate products and offers significant simplicity, efficiency and sustainability benefits over conventional offerings. We also have new Protective products such as CT shrink films—a micro-layer technology enabling higher performance films. This product results in lower total costs for our customers and an improved environmental footprint.

In 2013, as we continue to face challenging economic conditions in markets around the world, we will maintain our focus on the things that remain in our control in order to best position our Company for the future.

We are focused on waste reduction and continuous improvement. We regularly critically analyze our internal processes and business portfolio and reallocate technical, human, and capital resources to the most promising market sectors and away from sectors that are less strategic or have a lower level of financial performance.

Finally, everything we do is focused on enhancing topline growth for customers, reducing waste and operational cost and raising the bar on food safety and helping people live healthier. We are a Company with 25,000 passionate employees making the world a better place while providing value to our stockholders.

SEALED AIR EXECUTIVE COMMITTEE

nEW BuSInESS DIvISIOn STRuCTuRE

• Food & Beverage: Provides comprehensive systems that protect our customers’ products while adding value by increasing operational efficiency and reducing waste throughout the entire food and beverage supply chain.
• Institutional & Laundry: Provides fully-integrated Diversey-branded solutions to address kitchen hygiene, floor care, housekeeping and restroom care, and professional laundry applications.
• Protective Packaging: Provides customers with a versatile range of protective packaging solutions to meet cushioning, void fill, positioning/block-and-bracing, surface protection, retail display, containment and dunnage needs.
• Other: Medical Applications provide solutions offering superior protection and reliability to the medical, pharmaceutical and medical device industries, and New Ventures includes several development and innovative projects.