Inline Plastics Playbook v2 JUL-21

Setting up a New POD Program with CDI price Adjustment Mechanism

8. Review the “NET CONTRIBUTION MARGIN, MARGIN %

• The Authorization Key is in the top left corner of the spreadsheet • The Authorization scale is first by NCM% and then by Authorization Level. • Each item entered, with price, will color code and fall within an NCM% approval band. • The Authorization level needed for approval is by line item. • “NEW” or Customer Number is entered. • All items entered have a material next to “INLINE ITEM" which indicates an item is in the NCM. • Items, pricing and volume is entered in the NCM for only items to be added to the program. • The “REBATE”, “COMMISSION” and “FREIGHT” are entered at the desired percentage and dollar amount respectively. • The over-rides for the “REBATE”, “COMMISSION” and “FREIGHT” are completed. • The “NET CONTRIBUTION MARGIN, MARGIN %”, “ORDER VALUE NCM$” and “GROSS SALES” are populated for each item. • At bottom of NCM spreadsheet, the “TOTAL COMBINED” and “ALL COMBINED WEIGHTED NET MARGIN” boxes are populated with values. • Rows can be hidden that are blank for a professional appearance (optional). • Note: For existing program changes, the NCM is populated in same steps as above.

For example, if you have ten items entered in the NCM, nine items are at 42% NCM+ and one is between >=33% - <42% NCM, the NCM must be approved by the Sales Director. Or another example, if eight items are 42% NCM+, one item is >=33% - <42% NCM, and another item is >27% and <33%, the NCM must be approved by the VP Sales & Mktg. The lowest NCM% per line item determines the Authorization level needed for the entire NCM.

9. Review the NCM:

S A L E S P L AY B O O K

CONFIDENTIAL INFORMATION – For Internal Use Only