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2015 Investor DayThe Path of Transformation
Name: Scott GriffinTitle: Vice President, Corporate Communications
www.Greif.comJanuary 21, 2015
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Safe HarborForward-Looking Statements
All presentations contain certain forward-looking information within the meaning of the Private SecuritiesLitigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,”“aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof andsimilar expressions, among others, identify forward-looking statements. All forward-looking statementsare based on information currently available to management. Such forward-looking statements aresubject to certain risks and uncertainties that could cause events and the Company’s actual results todiffer materially from those expressed or implied. Please see the disclosure regarding forward-lookingstatements immediately preceding Part I of the Company’s Annual Report on the most recently filedForm 10-K. The company assumes no obligation to update any forward-looking statements.
Regulation G
These presentations may include certain non-GAAP financial measures like EBITDA and othermeasures that exclude special items such as restructuring and other unusual charges and gains that arevolatile from period to period. Management of the company uses the non-GAAP measures to evaluateongoing operations and believes that these non-GAAP measures are useful to enable investors toperform meaningful comparisons of current and historical performance of the company. All non-GAAPdata in the presentation are indicated by footnotes. Tables showing the reconciliation between GAAPand non-GAAP measures are available at the end of this presentation and on the Greif website atwww.greif.com.
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Agenda
9:00 AM Welcome and Opening Comments Scott Griffin, VP Communications
9:05 AM A message on Strategy and Direction David Fischer, President and CEO
9:30 AM The Transformation Roadmap Pete Watson, COO
9:50 AM Business Unit Overviews
RIPS Europe Ivan Signorelli, Global President, EMEA
RIPS North America Darren Cherry, Division President
Break
Flexible Product and Service Dano Lister, Division President
Paper Packaging and Services Tim Bergwall, Division President
11:10 AM Transformation Metrics and Aspirations Larry Hilsheimer, CFO
11:30 AM Questions and Answers All
12:00 PM Closing Comments David Fischer, President and CEO
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Please TEXT or EMAIL us your Questions…
TEXT: 740-417-3727
Email : investorday@greif.com
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Fiscal 2014 – 2015 EBITDA Bridge(Dollars in millions)
$44.9
395.6
462.2 499.9
$429.9
37.7 (43.2)
(26.8)
350.7
66.6
FY2014Net Income
Interest,Taxes
and DD&A
FY2014EBITDA
SpecialItems
FY2014EBITDA
ExcludingSpecial Items
Non-RecurringItems
FY2014EBITDA
ExcludingSpecial Items &
Non-Recur. Items
CurrencyImpacts
OperationalImpacts
FY2015ForecastEBITDA
ExcludingSpecial Items
1 EBITDA is defined as net income plus interest expense, net, plus income tax expense, less equity earnings of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization.
2 A summary of all special items that are included in EBITDA before special items is set forth in the Appendix to this presentation.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
(1) (2)
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Fiscal 2015 Free Cash Flow Bridge(Dollars in millions)
$430
$80 - $1202 - (8)
(150)
(82)
(80)
0 - (30)
FY2015EBITDA
ExcludingSpecialItems
CapitalExpenditures
CashInterest
CashTaxes
Change inOperatingWorkingCapital
Rounding toProvide
ConservativeRange
FY2015FCF
ExcludingTimberland
Transactions
1 EBITDA is defined as net income plus interest expense, net, plus income tax expense, less equity earnings of unconsolidated subsidiaries, net of tax plus depreciation, depletion and amortization.
2 A summary of all special items that are included in EBITDA before special items is set forth in the Appendix to this presentation.
3 Free cash flow excluding timberland transactions is defined as net cash provided by operating activities less capital expenditures and acquisitions of companies, net of cash acquired, plus proceeds from sales of properties, plants, equipment, businesses, and other assets.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
(1, 2) (3)
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Free Cash Flow and Dividends Paid(Dollars in millions)
2009 2010 2011 2012 2013 2014
Free Cash Flow After Purchases of PP&E $141.8 $34.0 $9.8 $307.3 $113.9 $123.9
Dividends Paid 88.0 93.1 97.8 97.7 98.3 98.6
Free Cash Flow After Purchases of PP&E / Dividends Paid 1.6x 0.4x 0.1x 3.1x 1.2x 1.3x
1 Free cash flow after purchases of PP&E is defined as net cash provided by operating activities less purchases of properties, plants and equipment.
2 Dividends paid represents cash payments to Class A and Class B shareholders of Greif, Inc. in each fiscal year, respectively.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
(1)
(2)
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Greif Debt Ratios vs. Industry Peer Group Averages
IndustryPeer Group Average(1)
GreifFiscal 2013(1)
GreifFiscal 2014
GreifForecast
2015
Net Debt(2)
/EBITDA2.5X 2.4X 2.3X 2.5X
Total Debt/Capital 58% 48% 49% 48%
1 Provided from a respected industry analyst’s report, permission granted to use the information without attribution, the data was compiled under CFA guidelines from publicly available information.
2 Net debt represents long-term debt plus the current portion of long-term debt plus short-term borrowings less cash and cash equivalents.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
2015 Investor DayThe Path of Transformation
Name: David FischerTitle: President & CEO
www.Greif.comJanuary 21, 2015
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Quick Facts
1 Founded in 1877 as a packaging company
2 $4.24 billion in sales and ~13,500 employees
3 Initial public offering in 1926
5 Leading industrial packaging company
4 Diversified business platform
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Greif serves diverse end markets such as chemicals, paints and pigments, food and beverage, petroleum,
adhesives, industrial coatings, agricultural, pharmaceutical, minerals and building products
$4.241
Rigid Industrial Packaging & Services
$3.0771
Flexible Products& Services
Paper Packaging
Land Management
$4261 $7071 $331
$4.24 BillionNet sales for 12 months ended October 31, 2014
250Nearly 250 operations>50
Operations in more than 50 countries
13,500Approximate number of employees worldwide
Diversified Business Platform and Global Footprint
1Twelve months ended October 31, 2014
World’s Leading Industrial Packaging Company
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Why Customers Choose Greif ?
“the safe choice”
Global Supply NetworkWith nearly 250 operations
around the world, our
customers get the guarantee to
receive their orders on time
and in full from an alternative
Greif facility in case of urgency.
Production ExcellenceWith widely standardized
processes across the world we
strive to eliminate risk of
failure. Continuous focus on
lean manufacturing and high
quality products & services.
The Greif WayWe are fair, ethical and honest.
We keep our employees safe
and do not depart from our
quality standards. You can
trust our word.
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You can trust us…
Greif picked for Forbes magazine’s “America’s 100 Most Trustworthy Companies”
http://www.forbes.com/sites/kathryndill/2014/03/18/americas-100-most-trustworthy-companies/
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Greif is progressing on innovation
Innovation Fueling Growth
Innovation Fueling Growth
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One Promise
One Team
One Purpose
Deliver value that meets and exceeds our
customers’ needs
Work as one team across all geographies and businesses
The global leader in industrial packaging
Long-term profitable
growth
Greif Aspiration
The Safe Choice – Best at Protecting Customers’ Products
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• Rewarding our shareholders
• Rewarding our shareholders
• 2003-2005• GBS Transformation
launched in 2003• Obtained remaining
CorrChoice interest• Average annual stock
return = 33%
• 2003-2005• GBS Transformation
launched in 2003• Obtained remaining
CorrChoice interest• Average annual stock
return = 33%
• 2006-2008• Leveraged GBS for cost
savings & capacity increases
• Strong go to market strategy
• Executed M&A activities–IPS rollup–Delta Petroleum–Blagden Packaging
• Start of the Great Recession
• Average annual stock return = 13%
• 2006-2008• Leveraged GBS for cost
savings & capacity increases
• Strong go to market strategy
• Executed M&A activities–IPS rollup–Delta Petroleum–Blagden Packaging
• Start of the Great Recession
• Average annual stock return = 13%
• 2009-2011• Launched 3 growth
platforms:1. Flexibles2. LifeCycle Services
(rigid drum reconditioning)
3. IBC• Recession in Western
Europe• Average annual stock
return = 8%
• 2009-2011• Launched 3 growth
platforms:1. Flexibles2. LifeCycle Services
(rigid drum reconditioning)
3. IBC• Recession in Western
Europe• Average annual stock
return = 8%
• 2012-2014• Increased focus on cash
and business integration• Pursued additional
synergies across businesses & geographic regions
• Average annual stock return = 2%
• 2012-2014• Increased focus on cash
and business integration• Pursued additional
synergies across businesses & geographic regions
• Average annual stock return = 2%
Oct-17
GBS Transformation Earn & Grow
Growth Through Adjacencies &
Extensions
Business Integration Our Future
Jan-16Jan-14Jan-12Jan-10Jan-08Jan-06Jan-04
Greif Historic Stock Returns1
1Based on adjusted close price incorporating dividends and stock splits
Nov-02
Focused on our Customers and Rewarding our ShareholdersC
umul
ativ
e pe
rcen
t cha
nge
–N
ovem
ber 2
002
-Oct
ober
201
4
-100
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
2015 Investor DayThe Path of Transformation
Name: Pete WatsonTitle: Chief Operating Officer
www.Greif.comJanuary 21, 2015
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Greif transformation framework
Vision & aspiration
“The Greif Way”
Strategy
Performance management
Collaboration & engagement across businesses
Increase cash efficiency
• SG&A efficiency – Businesses– Shared services / facilities– Corporate
• Working capital reduction
• Portfolio optimization– Transform / fix– Protect the core – Invest to grow– Potential Divest– Resource allocation
process
Optimize the portfolio for the future
• Best in class GBS processes linked as one team focused on creating customer value
Deliver profitable customer growth
ComEx OpEx S&SC
Talent & organizational health
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Strategic Transformation Initiatives
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Portfolio Optimization Quadrant Summary
Transform or Fix
Divest Protect the Core
62 Value Cells
Invest To Grow
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Portfolio Optimization Quadrant Summary
Transform or Fix16 Value Cells
Divest13 Value Cells
Invest To Grow5 Value Cells
Protect the Core25 Value Cells
59 Value Cells
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Portfolio Optimization Quadrant Summary
Transform or Fix16 Value Cells
Revenue $788M
Divest13 Value Cells
Revenue $445M
Invest To Grow5 Value Cells
Revenue $903M
Protect the Core25 Value Cells
Revenue $1,947M
Revenue * $4,083
* Adjusted revenue (minus divestitures and land management). Note: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
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Transform or FixPre-Tax RONA1 6.0%
DivestPre-Tax RONA1 33.3%
Invest To GrowPre-Tax RONA1 53.8%
Protect the CorePre-Tax RONA1 48.7%
Portfolio Optimization Value Summary
1. Pre-tax RONA is calculated as plant-level operating profit excluding special items divided by trailing 12 month average net assets which is defined as current assets (excluding cash) plus PP&E, net less accounts payable less other current liabilities.
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Transform or Fix• Top down diagnostic targets developed
• 100% bottoms up plans received
• All plans ready for execution by Feb 15th
Divest13 Value Cells
Revenue $445M
Invest To Grow5 Value Cells
Revenue $903M
Protect the Core25 Value Cells
Revenue $1,947M
Portfolio Optimization Progress to Date
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Transform or Fix16 Value Cells
Revenue $788M
Divest• Strategic review process
• Several actions completed
• Balance divestitures with Invest to Grow
Invest To Grow5 Value Cells
Revenue $903M
Protect the Core25 Value Cells
Revenue $1,947M
Portfolio Optimization Progress to Date
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Transform or Fix16 Value Cells
Revenue $788M
Divest13 Value Cells
Revenue $445M
Invest To Grow5 Value Cells
Revenue $903M
Protect the Core• Top down targets assigned
• Plans being developed
• Begin execution by March 31
Portfolio Optimization Progress to Date
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Transform or Fix16 Value Cells
Revenue $788M
Divest13 Value Cells
Revenue $445M
Invest To Grow• Paper Mill Integration
• CorrChoice
• Innovative products and services
• Drum Plant Jubail, Saudi Arabia
Protect the Core25 Value Cells
Revenue $1,947M
Portfolio Optimization Progress to Date
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Portfolio Optimization Quadrant Summary
Transform or Fix
Divest
Invest To Grow
Protect the Core
2015 Investor DayThe Path of Transformation
Name: Ivan SignorelliTitle: Global President, EMEA
www.Greif.comJanuary 21, 2015
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Business Profile – RIPS EMEA
Lubricants, Oils and Additives
Agriculture
Pharmaceuticals,Mining, Others
Chemicals
EMEA LOCATIONS
= 54
Countries = 26
#2
#1
#1
#3
#1 Footprint
Steel Drums
Plastic Drums
Fiber Drums
IBC
Reconditioning
Revenues(Euro Million)
Operating Profit(Euro Million)
Main Customer Groups
Greif PositionsIn EMEA
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Market Trends
• Slow overall economic recovery in Western Europe
• Steady markets in automotive, agriculture and construction
• Downward trend on raw material and energy prices
• Euro devaluation may result in higher competitive ability of Eurozone produced goods against its competitors produced in US Dollar pegged economies
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• Introduction and continuous development of
products driven on sustainability
• Conclude investment and start up of Jubail Plant in
the Kingdom of Saudi Arabia
• Strategic partnerships with key global customers
• IBC capacity redeployment and expansion
• Implementing enhanced OPEX with
Transformation
• Consolidation and restructuring of our
manufacturing footprint
• Renovating and optimizing reconditioning
• Operating Working Capital optimization
• Enhance Customer experience through Safe
Choice Program
• Value creation workshops with key customers
• Innovation at customer base with advanced
material handling systems
Strategic Priorities
Value creation
Improving asset yield
Innovation and opportunities
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Transformation Strategy – RIPS EMEA
Redeploy under utilized IBC assets
Consolidation and optimization of manufacturing footprint
Enhancing GBS
Transform or Fix
Divest
Invest To Grow
Protect the Core
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Summary Statement and Key Takeaways
• Greif is the leading industrial packaging supplier in the region
• Greif RIPS EMEA steady contributor to the results
• Main customer groups showing steady projections
• New investments coming into operation
• Continuous efficiency improvement programs
• Preparing the future
2015 Investor DayThe Path of Transformation
Name: Darren CherryTitle: Division President, RIPS NA
www.Greif.comJanuary 21, 2015
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Business Profile – RIPS North America
Food & Beverage
AgriculturalChemicals
Lubricants
Chemicals
Pharmaceutical
Total Market (USD Million)RIPS Revenue (USD Million)
Top markets servedRevenue (USD million)
Operating Profit (USD million)
2014
1,055
2013
1,030
2012
1,047
98116122
201420132012
480
87
87
315
308
22452
31735
909
Products and Services
#1
#1
#2
Steel Drums
FibreDrums
Plastic Drums
IntermediateBulkContainers
Chemical Logistics Services
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Market Trends – RIPS North America
• Softer economic conditions in Europe and China combined with stronger currency exchange rates may adversely affect North America’s growth.
• Declining crude oil prices will soften demand for processing chemicals that service the US energy sector.
• The US chemical industry is expected to expand as a result of the advantaged feedstock economics from shale gas access.
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2015 Priorities – RIPS North America
• Improve asset utilization through footprint consolidation.
• Streamline portfolio and eliminate non-core products to reduce complexity cost.
NexDRUM®
GCUBE®
Grow Products Focused on Meeting Customers’ Needs
Optimize Portfolio To Reduce Cost
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Transformation Strategy – RIPS North America
Transform or Fix
Divest
Invest To Grow
Protect the Core
Steel Drum PortfolioReposition portfolio to maximize customer value.
Consolidate footprint to reduce excess capacity.
Reposition and align resources to efficiently service customers’ current needs.
Streamline portfolio to best serve customers’ future needs.
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Key Takeaways – RIPS North America
• Building on a good foundation, we will accelerate our transformational activities with a laser focus on the following areas:
- Enhanced customer service- Operational efficiency- Footprint consolidation
• We will align our resources to partner with our customers to achieve profitable growth in core markets.
• The US chemical industry is poised for some strong growth in the next five-years and Greif is ideally positioned to capitalize.
2015 Investor DayThe Path of Transformation
Name: Dano ListerTitle: Division President – Flexible Products & Services
www.Greif.comJanuary 21, 2015
Greif FPS, A Joint Venture with:
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The global leader in flexible industrial packagingComprehensive Portfolio of flexible industrial packaging
We package products that are essential to life that improve the quality of life for people everywhere.
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Pharma
Fertilizer
Food
Chemicals
Mining & Minerals
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29
37
86
157
162
156
502
605
788
FPS revenue (USD Million) Total Industry Segment (USD Million)
18%
23%
17%
20%
5%
Share of walletMajor industries served
The global leader in flexible industrial packagingServing all major industries with extensive industry know how
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2
10
0
20132012 2014
386394400-2,0%-1,5%
201420132012
Revenues1(USD million)
Adjusted Operating Profit2(USD million)
The global leader in flexible industrial packagingRevenue and Operating profit developments (2012=> 2014)
Notes:1. Excludes sales from Multiwall packaging division.2. Excludes Multiwall packaging division operating profit, impairments and non-recurring events.Note: A reconciliation of the differences between Adjusted Revenues and Adjusted Operating Profit with the most directly comparable GAAP financial measure is included in the appendix to this presentation
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Shifts in external environment necessitate updated strategic plan
Key to original strategy External events Strategy refresh
① Acquire leadership position
② Competitive advantage through lowest cost resin economics
③ Drive impact from Greif Business System (GBS)
• Two European economic downturns
• Shift in resin market in Kingdom of Saudi Arabia
• Occupation of Hadimkoy facility
• Define competitive basis for success
• Determine revenue and profit potential
• Develop implementation plans to achieve targets
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Three strategic prioritiesTaking action to fix the business and set foundation for future
Establish base profitability
Create customer responsive supply
footprint
Complete strategic plan
• Highly engaged, compliant workforce
• Reduce costs (SG&A and variable costs)
• Portfolio optimization to address loss makers
• Shorten delivery lead times
• Reduce supply risk
• Provide contingency options for key customers
• Plan to be completed by end of March
• Determine business size and profitability potential
• Well grounded implementation plans
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Transformation Strategy - FPS
Transform or Fix
Divest
Invest To Grow
Protect the Core
Develop local supply source of proprietary woven fabric
Improve product mix and margin
Implement Best In Class confection operations (increase efficiency 2x)
One value cell transformation plan increases EBITDA to achieve target levels in 2016
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Flexible Products and Services positioned well to lead
• Greif FPS a global leader in flexible industrial packaging and services
• There are attractive components of the portfolio, delivering sustainable returns
• Steps have been taken to get the business back on stable financial base - complete business strategy review in process
2015 Investor DayThe Path of Transformation
Name: Tim Bergwall Title: Division President, Paper Packaging
www.Greif.comJanuary 21, 2015
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Business Profile
Products Revenues (USD million)
Operating Profit (USD million)
20142012 2013
• Triplewall Products
• Asitrade Graphics Products
• LeaderCorr ® Signage Board
• Coated Containerboard
• Corrugated Sheets
707676574
12612484
20142012 2013
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Market Trends
• Liner and Medium performance improvements
• Sheetfeeder Expansion
• Specialty Products Expansion
Changing Competitive Landscape…Further ConsolidationMachine ConversionsNew Entrants
• Medium-Centric System
• New Corrugator TechnologiesLightweighting
Trend Key Actions
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Strategic Priorities
• Efficient Frontier
• Over Integration
• Differentiated Specialty Products
• Lead the Transformation
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Transformation Strategy – Paper Packaging
Transform or Fix
Divest
Invest To Grow
Protect the Core
Business Expansions
Riverville Expansion
CorrChoice Corrugator
Asitrade Expansion
Enhancing GBS
Box Plant Divestiture
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Summary Statement and Key Takeaways
• High performing business that is unique in the industry
• Balanced system growth with improving integration
• Compelling Value Proposition for a growing sector
2015 Investor DayThe Path of Transformation
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Name: Larry HilsheimerTitle: Executive Vice President, CFO
www.Greif.comJanuary 21, 2015
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Financial Metrics
Value (%)
• Operating Profit %
Gross Profit %
SG&A %
• Operating Working Capital %
Drivers of Value
• Targeted Growth by Business
• Innovation Revenue Mix
From 2014
7.5%
19.1%
11.7%
9.7%
Business Specific
To 2017
10.0%
20.0%
10.0%
<7.5%
Business Specific
ProductDiversification
Impact
30%+ Improvement
$50M+ Operating Margin
$50M+ Operating Margin
$100M Cash
2-3% Net Sales Growthin 2016 & 2017
ProductDiversification
2-3% Net Sales Growthin 2016 & 2017
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Financial Metrics
1 2015 net sales is forecasted at $4,154; net sales is forecasted to grow 2.0-3.0% in both 2016 and 20172 SG&A has been adjusted to exclude acquisition-related costs3 Special items includes restructuring charges, acquisition-related costs, timberland gains, non-cash asset impairment charges, and gain on disposal of properties, plants, equipment and business, net 4 Operating working capital percentage is calculated using the October 31, 2014 balance of trade accounts receivable plus inventories less accounts payableNote: A reconciliation of the differences between all non-GAAP financial measures used in this presentation with the most directly comparable GAAP financial measures is included in the Appendix to this presentation.
(Dollars in millions) Twelve Months Ended October 31,
2017
2.0% 3.0%2014 Growth Growth
Net Sales (1) $4,239 $4,322 $4,407
Gross Profit 811 864 881
Margin % 19.1% 20.0% 20.0%
SG&A (2) 495 432 441
% of Net Sales 11.7% 10.0% 10.0%
Operating Profit Excluding Special Items (3) 316 432 441
% of Net Sales 7.5% 10.0% 10.0%
EBITDA Excluding Special Items 462 570 579
% of Net Sales 10.9% 13.2% 13.1%
Operating Working Capital % (4) 9.7% 7.2% 7.1%
Free Cash Flow Excluding Timberland Transactions 204 282 287
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Questions
TEXT: 740-417-3727
Email : investorday@greif.com
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Thank You
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