Avian Flu Pandemic Preparedness Plan

2. Avian Flu Pandemic Preparedness Plan Customer and Supplier Communications

3. Customer and Supplier Communications Objective To communicate basic information on Sonoco’s Avian Flu Pandemic Preparedness Plan and encourage our customers and suppliers to develop plans to assure continuation of business in view of a possible Avian Flu Pandemic threat.

4. About Flu (Definitions) Human Flu • Periodic outbreak caused by flu viruses spreading among people Bird Flu • Caused by bird flu viruses • Sickens and kills wild birds, chickens, ducks and turkeys • Current bird flu virus: H5N1 Flu Pandemic • An epidemic that occurs worldwide and affects large number of people • Caused by • New types of flu viruses • Flu viruses that have never circulated among people • Flu viruses that have not circulated among people for a long time but acquired ability to spread easily among humans • Differs from ordinary “cold” or flu viruses already in circulation

5. About Flu (Impacts on humans) Human Flu • Generally not serious • Takes about 7-10 days to recover • Young children, old people and sick take longer to get well Bird Flu • About 50% of people infected died Flu Pandemic • 25% of worlds population may fall ill, but majority will have only mild illness • Up to 150 million people could die • 1968 Hong Kong Flu: 1 million died • 1918 Spanish Flu: 20 million died • Could result in worldwide economic recession

6. About Flu (How it spreads) Human Flu • Spreads from person to person through saliva droplets by coughing or sneezing • Touching contaminated surfaces Bird Flu • Does not spread easily among humans (only 250 confirmed cases/146 deaths) • Humans can catch disease through close contact with infected birds • No known cases of human-to-human infection Flu Pandemic • Spreads easily like seasonal flu • Humans have little immunity as viruses are new

7. World Health Organization’s Six Pandemic Phases

8. No H5N1      Wild Birds       Domestic Poultry       Human Cases Avian Flu Affected RegionsReports in countries where Sonoco operates • Confirmed Bird Cases: (16) China, France, Germany, Greece, Indonesia, Italy, Japan, Malaysia, Poland, Russia, Spain, Sweden, Switzerland, Thailand, Turkey and U.K. • Confirmed Human Cases: (4) China, Indonesia, Thailand and Turkey

9. Sonoco’s Avian Flu Pandemic Preparedness Step 1: Established a Cross-Functional Pandemic Planning Team • Working with International SOS, global corporate health advisor Step 2: Educate Team Members on Pandemic issues and implications Step 3: Develop Corporate Pandemic Plan • Linking corporate policies to actions, based on phases and affected regions Step 4: Table top exercise to determine gaps in developed plan Step 5: Customize Corporate Plan to address local issues/cultures Step 6: Implement Plan • Orient and train key management • Educate and orient employees Step 7: Test Plan (drills) to ensure effectiveness of plans Step 8: Monitor situation and modify plan as required

10. Objective of Sonoco’s Avian Flu Pandemic Preparedness Plan • Keep employees safe • Maintain business continuity • Effectively communicate with management/employees, customers and suppliers

11. Sonoco’s Pandemic Policy and Rationale Document Section 1 – Pandemic Planning Structure Section 2 – Communications Section 3 – Business Continuity Section 4 – Optimizing Employee Health Section 5 – Reduction of Infection Risk Section 6 – Management of Infected/Potentially Infected Employees Section 7 – Management of Expatriates Section 8 – Management of Traveling Employees Section 9 – Antiviral Medications

12. Business Continuity Plan in Affected Regions Issues to be addressed: • Dealing with reductions in staff • Closure of work places by health care authorities • Reduction of flights/air cargo capabilities • Travel restrictions • Border closures • Supply chain impacts

13. Communications Sonoco’s Avian Flu Pandemic Web site: www.sonoco.com/avianflu/ More information on Avian Flu is available from: WHO: http://www.who.int/csr/disease/avian_influenza/en/ CDC: http://www.cdc.gov/flu/avian/index.htm US Government: http://www.pandemicflu.gov/

14. Areas of Significant Importance • Keeping Employees Safe • Business Continuity • Effective Communications • Management/Employees • Customers/Suppliers • Other External Audiences

15. Cumulative Number of Confirmed Human Cases of Avian Influenza A/(H5N1) Reported to WHO 16 October 2006 Total number of cases includes number of deaths.WHO reports only laboratory-confirmed cases.

16. Pandemic Preparedness2006 AMR Research Study • 68 percent of companies with more than $1 billion in revenues are not prepared for a pandemic, such as an avian flu outbreak. • Majority of companies have not implemented a risk management/business continuity strategy. • Supply Risk Planning (22%) – Prepared to re-source supplies and goods from other areas. Understanding and optimizing the nodes in the supply chain in case large geographies are more affected than others. • Home Bound (38%) – Companies with the technology in place to support customers and employees that need to work from the safety of their own home. • Self-Service (29%) – Companies able to allow employees and customers to transact business remotely and will limit exposure. • Training (22%) – Workers trained in multiple jobs to ensure business continuity. • Risk management (43%) – Evaluating scenarios for corporate-wide financial risk for the present, the near term, and the future.

17. Summary of Work with International SOS Step 1: Establish a Pandemic Planning Team – High level / Cross functional / Has authority Step 2: Educate Team Members – Pandemic issues and Implications Step 3: Develop a Corporate Pandemic Plan – Link corporate policies to actions, based on phases and affected regions Step 4: Table top exercise to determine gaps in the plan Step 5: Customize Corporate Plan to address local cultures/issues Step 6: Implement Plan – orient and train key management – Educate and orient staff Step 7: Test Plan (drills) to ensure that the plan works Step 8: Monitor situation, and modify plan as required

18. Communications Strategy • Keeping management informed • Keeping employees educated/informed • Communicating to customers/suppliers • Communicating to other external audiences

19. Communications Tactics • Management information • E-mail alerts • Management Committee meetings/calls/plan training • Management pandemic portal (Sharepoint or Web site) • Employee Connection pandemic portal • news@sonoco, e-mail alerts (work or home) • Employee educational materials (language translated) • Sonoco Globe (December 2006 edition) • Wellness communications (StayWell, Family Safety & Health, other flu prevention materials) • Employee hotline • Customer/vendor information exchanges • News releases/sonoco.com pandemic portal/crisis communications plan execution

20. Unique Features of Pandemic Influenza Exercises • Rapid decision-making with limited information • Staged decision-making • Long term event • Global event • Impacts all sector of society • Exploring relationships with the public health system • Anticipated public panic

21. Prevention Train, Test, Recovery Planning Evaluate, Revise Response Business Continuity Preparedness

22. Format:Issues to Consider • Physical lay out of the exercise • Organizational structure • Facilitator • Controllers • Simulators • Scribe/recorder • Evaluators • Agenda

23. Format: Lay Out • All players at one table (15 to 25 is optimal; 50 is the maximum). • Key players at one table with supporting players behind them. • Players at multiple tables (e.g., by business unit or incident command structure).

24. Format: Lay Out (cont.) • Players in different rooms (e.g., simulate a crisis management center in one room with other players elsewhere). • Observers usually sit around the perimeter of the room and are clearly delineated from the players.

25. Logistics Planning Incident Command Operations Finances

26. *BU: Business Unit BU BU BU BU BU Senior Management BU BU BU BU

27. *RT: Response Team RT RT RT RT RT Crisis Management Team RT RT Screen

28. Risk Management Operations Information Technology Finance Human Resources Public Relations

29. Format: Organization (cont.) • Facilitator • Presents the scenario. • Keeps the discussions on topic. • Makes sure that key issues are addressed. • Prioritizes issues. • Controllers • Assist facilitator. • Keep the exercise on track.

30. Format: Organization (cont.) • Simulators • Represent other organizations who may interact with players. • Add events/injects to the scenario. • May be used as “patients” or “victims.” • Scribe/recorder • Documents key ideas/action items.

31. Format: Organization (cont.) • Evaluators • Observe the exercise. • May be members of the Design Team. • Record observations (may use an evaluation form).

32. Format: Agenda • Registration • Opening remarks • Background information • Introduction to the exercise • Ground rules • Assumptions • Modules with discussion time • “Hot wash”/debrief • Complete evaluations • Adjourn

33. Modules • Modules “tell the story” of the scenario. • Each exercise usually has several modules. • Use “real-time” and use a virtual clock. • Create a “live” environment. • May want to use “roadblocks” or unplanned events in the modules.

34. Table of Modules • Each module can focus on: • An issue, set of objectives, or an event. • A time period. • Develop a table as an outline. • Provides a mechanism to plan out the exercise. • Takes into consideration the time to allot to each module. • Organizes key issues.

35. Examples of Data Injects • News reports • Data summaries • Maps • Photos • Diagrams • Event summaries • Case reports • Videos • Phone calls • Recommendations

36. Data Injects Use injects to: • Provide critical information necessary for decision-making. • Provide actionable information. • Add color to the scripts. • “Fill out” the scenario. • Add a sense of realism to the story.

37. Planning Below are examples of major actions and issues that businesses should consider during the Planning Phase: • Essential: Define essential functions, goods, and services under conditions of dramatically worsening conditions and reduced options for the business, community, and nation. • Workers: All employees are susceptible, businesses must ensure the 60 percent who are well can sustain essential functions, goods and services. • Duration: A 6-8 week pandemic wave increases stresses on systems and people requiring focused planning on situational awareness and support. • Dispersion and Support: Rapid geographic dispersion precludes transferring support to or from impacted areas. • Families: Keeping essential workers on the job will be substantially dependent on whether their families are protected and supported. • Adaptive Use: A business’ functions may have to be adapted to enhance focus on essential goods and services.

38. Preparedness Below are examples of major actions and issues that businesses should monitor during thePreparedness Phase: • Share Plans: Business must share their plans with all key players in the community to ensure interlocking plans and actions. • Networks of Preparedness: Businesses must develop mutual support alliances within the community and region as well as with their business partners and competitors. • Large and Small: Sustaining the local and national essential services demands both large and small businesses preparedness. • 2nd/3rd Order Effects: The strength of a pandemic plan will be defined by the weakest link in its supply chain, especially among the 2nd and 3rd order suppliers, distributors, and manufacturers. • Outsourcing: Extensive outsourcing requires businesses to ensure their many support contractors are equally prepared to respond to a pandemic. • People and Stockpiles: Prioritize all essential people, material and equipment support.

39. Response Below are examples of major actions and issues that businesses should manage during the Response Phase: • Disease Containment Strategies: Isolation, quarantine, social distancing, “snow days,” closing places of assembly and restricted movement will substantially compound impacts on businesses. • Cross-sector Interdependencies: Planning, communicating, and supporting cross-sector partners will be key in a pandemic. • Cascading Effects: The collective impacts on numerous small/large business may cascade into a regional/national emergencies. • Risk Communications: Consistent, honestrisk communications between a business and its workers, their families, essential business partners, and the community will prove decisive. • Cooperation and Collaboration: Government and businesses cannot go it alone during a pandemic; they must communicate and collaborate at all times to ensure mutual support .

40. Recovery Below are examples of major actions and issues that businesses should address during the Recovery Phase: • Multiple Waves: A pandemic will not end with the first wave, thus businesses must balance their available resources to expedite recovery while preparing for the next pandemic wave. • Worker/Family Losses: Overcoming the effects from worker and family illness as well as from lost wages due to providing home health care, “snow days” and worker furloughs will be a significant challenge. • Workforce Reconstitution and Competition: Competition for available skilled workers and support services will be intense. • Government/Community Support: Substantial external support (government and community) may be required for businesses to prepare for the next pandemic wave while recovering from the first wave. • Inter-Business Support: For a business to recover and thrive, its essential business partner support network must also recover and thrive. • International Recovery: International recovery may lag behind U.S. recovery. International raw material availability, manufacturing, supply chain support, and purchases of U.S. goods may be delayed.

41. One reason – operating model complexity (including thesupply chain) has outpaced risk management practices Networked Present State Distributed Operating Model Complexity Resilience Gap Centralized Time Present State Functional Risk Management Sophistication Single Point of Failure Coordinated Managing Risk Across the Enterprise Adaptive Creating Resilience Across the Enterprise

42. These changes can have chilling impacts on businesses • 73% of businesses that have a prolonged disruption of 10 days or more close or suffer long term impact1 • 43% of businesses suffering a disaster never recover sufficiently to resume business1 • Of those that do reopen, only 29% are still operating two years later1 • Only 32% of 247 top financial executives said their companies were able to make major changes to their supply chain if needed2, and 38% said their corporations were sitting on “too much unmanaged supplier risk”2 • Large companies will face a crisis every 4 to 5 years2 ... but every company or agency could potentially face the pandemic crisis Source: 1 Crisis Management International 2 CFO Research Services