Greif Inc. · NYSE:GEF
Greif — Investor Day (June 2019)
97 slides from Greif's investor day presentation, Jun 26, 2019
Slide 1: Investor Day June 26, 2019
GREIF PACKAGING SUCCESS TOGETHER™ INVESTOR DAY JUNE 26, 2019
Slide 2: Safe harbor
Safe harbor FORWARD-LOOKING STATEMENTS • This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,”
Slide 3: Agenda
Agenda 8:45 am Matt Eichmann, VP – IR & Corp. Communications Opening comments Pete Watson, President & CEO Greif overview & strategy Tim Bergwall, SVP Paper Packaging & Services 9:45 am Q&A Ole Rosgaard, SVP Rigid Industrial Packaging & Services Hari Kumar, VP Flexible Products & Services Larry Hils
Slide 4: Safety briefing and logistics overview
Safety briefing and logistics overview • Please silence phones and devices during the presentation • Please hold your questions to the designated question / answer periods; please wait until you receive a microphone to ask questions • Please feel free to visit the refreshment tables and restrooms at
Slide 5: Greif Overview & Strategy
Greif Overview & Strategy Pete Watson President & Chief Executive Officer June 26, 2019 – P.5
Slide 6: Why invest in Greif?
Overview PPS RIPS FPS Financial Appendix Why invest in Greif? 1 Today, attractive valuation, compelling dividend and opportunity for free cash flow expansion 2 Robust and diverse product portfolio with exposure to a variety of end markets 3 Numerous avenues for incremental low-risk growth and margin
Slide 7: Investor Day goals
Overview PPS RIPS FPS Financial Appendix Investor Day goals • Demonstrate that Greif is an attractive investment opportunity • Review Greif’s business, vision and progress on key strategic priorities • Provide an update on Caraustar’s integration and synergies • Review updated capital allocation pri
Slide 8: Greif provides packaging solutions around the world
Overview PPS RIPS FPS Financial Appendix Greif provides packaging solutions around the world Rigid Industrial Packaging & Services Paper Packaging & Services Flexible Products & Services Land Management Denotes Greif presence in country A global and diversified footprint across 43 countries and mult
Slide 9: Leading positions in multiple packaging substrates
Overview PPS RIPS FPS Financial Appendix Leading positions in multiple packaging substrates Upstream Upstream Operations Operations Industrial Industrial Packaging Packaging Steel Industrial Fibre Flexible IBCs Closures #2 Uncoated Recycled Paperboard (URB) #3 #1 #1 #1 #1 Coated Recycled Paperboard
Slide 10: Global trends support future growth
Overview PPS RIPS FPS Financial Appendix Global trends support future growth Trend Comments • World population expected to grow by ~13% by 20301 Global population growth; emerging • Emerging economies are driving greater consumption of economies and rise of the middle class products, goods and infra
Slide 11: Recap from 2017 Investor Day
Overview PPS RIPS FPS Financial Appendix Recap from 2017 Investor Day Commitments made Results • Adj. EBITDA +27%1 with Caraustar; +19% without Continue to transform and optimize the business • FY EPS guidance achieved for the last three years • FPS performance exceeding plan • IBC volume +16.8%2, o
Slide 12: Business approach focused on fundamental execution
Overview PPS RIPS FPS Financial Appendix Business approach focused on fundamental execution Build, optimize and Out serve the Generate and deploy Create sustainable service existing competition enhanced Free Cash value for customers portfolio Flow and shareholders • Leverage leading • Provide truly
Slide 13: Improved performance on all key metrics
Overview PPS RIPS FPS Financial Appendix Improved performance on all key metrics Net Sales ($ Millions) Adj. EBITDA ($ Millions) $5,000 $700 $4,600 8.5% $4,200 2.3% $500 $3,800 $3,400 $3,000 $300 FY15 FY18 FY19E CAGR FY15 FY18 FY19E ‘15-’18 Adj. EPS ($/sh) Adj. Free Cash Flow ($ Millions) $4.50 $300
Slide 14: Vision and strategic priorities in place
Overview PPS RIPS FPS Financial Appendix Vision and strategic priorities in place Strategic In industrial packaging, be the best performing Vision customer service company in the world 1 Engaged Teams 2 Differentiated Customer Service 3 Enhanced Performance • Health and safety • Deliver superior cus
Slide 15: Putting the Service Profit Chain to work at Greif
Overview PPS RIPS FPS Financial Appendix Putting the Service Profit Chain to work at Greif Differentiated Drives Engaged Customer Financial Colleagues Service Performance Engaged colleagues drive exceptional performance for customers and shareholders June 26, 2019 – P.15
Slide 16: Strategic priority: people and teams
Overview PPS RIPS FPS Financial Appendix 1 Strategic priority: people and teams Peter G. Watson Lawrence A. Hilsheimer Ole G. Rosgaard Timothy L. Bergwall Hari K. Kumar President and Chief Executive Vice President, Senior Vice President and Group Senior Vice President and Vice President and Executiv
Slide 17: Strategic priority: people and teams
Overview PPS RIPS FPS Financial Appendix 1 Strategic priority: people and teams Teams in the top quartile of those Gallup Overall Engagement Score Gallup1 has studied have… 21% Higher profitability 4 Manufacturing sector 3.97 percentile ranking 17% Higher productivity 74th 3.9 10% Higher customer me
Slide 18: Strategic priority: differentiated customer experience
Overview PPS RIPS FPS Financial Appendix 2 Strategic priority: differentiated customer experience Net Promoter Score (NPS) Evolution: Wave 1 - 8 60 57 55 50 50 47 47 46 45 42 40 40 39 35 30 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7 Wave 8 43% improvement in Net Promoter Score since inception
Slide 19: Strategic priority: financial performance
Overview PPS RIPS FPS Financial Appendix 3 Strategic priority: financial performance Adjusted EBITDA – actual and anticipated ($M) $700 $650 $600 $550 $500 $450 $400 $350 $300 FY15 FY16 FY17 FY18 FY19E Denotes Adj. EBITDA range for FY19 28% improvement in Adj. EBITDA between 2015 and 2018 Note: A re
Slide 20: Strategic priority: sustainability performance
Overview PPS RIPS FPS Financial Appendix 3 Strategic priority: sustainability performance 2016 Join UN 2008 Global Join World Business Compact 2025 Council for Sustainability Sustainable 2018 goals achieved Development 2012 2017 Achieved an NexDRUM Sustainability “A- Leadership” introduced goals est
Slide 21: Strategic priority: growth aligned to value
Overview PPS RIPS FPS Financial Appendix 3 Strategic priority: growth aligned to value June 2017 Investor Day Caraustar acquisition announced December ‘18 Mill system operations Converting systems Specialty markets focus Recovered fiber usage Continuous improvement mindset IBC ex
Slide 22: Strategic priority: Caraustar enhances Greif's portfolio
Overview PPS RIPS FPS Financial Appendix 3 Strategic priority: Caraustar enhances Greif’s portfolio 1 Combined pro-forma Impact RIPS RIPS Sales by PPS PPS Balances Greif’s Segment FPS FPS existing portfolio LM LM US US Sales by EMEA EMEA Increases Greif’s Geography exposure to the U.S. APAC & APAC
Slide 23: Greif: Key Takeaways
Overview PPS RIPS FPS Financial Appendix Greif: Key Takeaways 1 Diverse product portfolio that provides packaging solutions to our customers 2 Clearly demonstrated a track record of delivering on our commitments 3 Caraustar acquisition strengthens earning power and free cash flow expansion 4 Well po
Slide 24: Paper Packaging & Services (PPS)
Overview PPS RIPS FPS Financial Appendix Paper Packaging & Services (PPS) Tim Bergwall Senior Vice President and Group President June 26, 2019 – P.24
Slide 25: Investor Day goals
Overview PPS RIPS FPS Financial Appendix Investor Day goals • Introduce our new leadership team • Review our network overview and capabilities • Highlight each product/segment with our go to market strategy • Review the Caraustar acquisition and identified optimization activities June 26, 2019 – P.2
Slide 26: Broad portfolio offering a variety of paper products
Overview PPS RIPS FPS Financial Appendix Broad portfolio offering a variety of paper products Mills Containerboard Uncoated Recycled Coated Recycled Paperboard Paperboard Recovered Fiber C #2 #3 Converting Corrugated Consumer Tube & Core Products Packaging C C #2 Note: Ranking denotes standing in gl
Slide 27: Highlights and differentiation
Overview PPS RIPS FPS Financial Appendix Highlights and differentiation 2019 Pro-Forma Financials ($M)1 Highlights and Capabilities Differentiation Revenue $2,274 • Niche position in containerboard • Speed – response and lead times Adjusted EBITDA2 $412 • Leadership position in URB and • Breadth of
Slide 28: Well respected and experienced management team
Overview PPS RIPS FPS Financial Appendix Well respected and experienced management team Mills and recycling Converting operations Leader Role Prior Experience Leader Role Prior Experience David VP, Mill Matt VP, CorrChoice Scott System Barnes Mark VP, Sales – Craig VP, Industrial Butryn URB/CRB Roll
Slide 29: Industry leading customer service levels
Overview PPS RIPS FPS Financial Appendix Industry leading customer service levels Customer Satisfaction Index (CSI) Examples of customer needs addressed 100 • Real-time shipping updates to customers via text • Strategic customer partnerships: GBS teams deployed on safety and continuous improvement p
Slide 30: Expanded, integrated and national network
Overview PPS RIPS FPS Financial Appendix Expanded, integrated and national network 100% Uncoated Recycled Coated Recycled Recovered Fiber Group Containerboard Board (URB) Board (CRB) • ~4 million tons annually • 1,000,000 tons • 800,000 tons • 200,000 tons Integration Levels 82% 52% 50% CorrChoice S
Slide 31: Market overview: recycled boxboard
Overview PPS RIPS FPS Financial Appendix Market overview: recycled boxboard Uncoated recycled board (URB)1 industry capacity Tons 2700 2650 2600 2550 • Market size: 4.5M tons 2500 2450 • Capacity down 8%1 last five years, no capacity increases announced 2400 2350 • Wide and diverse open market 2013
Slide 32: IPG: specialty focus with low customer concentration
Overview PPS RIPS FPS Financial Appendix IPG: specialty focus with low customer concentration Specialty vs. non-specialty sales1 Low customer concentration1 Top 10 Customers % of total 20% Customer 1 3.0% Non- Customer 2 2.7% specialty Customer 3 2.5% 40% Customer 4 2.4% Specialty 60% Customer 5 2.2
Slide 33: IPG: benefits from diverse end markets
Overview PPS RIPS FPS Financial Appendix IPG: benefits from diverse end markets • IPG’s diversified end market revenue provides broad Tube/core revenue by end market1 exposure to US economic activity • Tube/core market offers limited risk as paper remains Paper mill cores best substrate due to perfo
Slide 34: CPG: opportunity to grow with differentiated service in the middle market
Overview PPS RIPS FPS Financial Appendix CPG: opportunity to grow with differentiated service in the middle market Revenue by product Folding carton 1 Food service Rigid box • Strategically located national plant network • Focused on delivering speed to market and high-touch Revenue by end market1 s
Slide 35: CorrChoice: pursuing further containerboard integration
Overview PPS RIPS FPS Financial Appendix CorrChoice: pursuing further containerboard integration • Litho-lamination specialty corrugator at CorrChoice Cincinnati, OH operational in June 2019 ‒ Enhances volumes, increases higher margin specialty sales and adds integration ‒ Expands the microflute and
Slide 36: Caraustar integration generates network opportunities
Overview PPS RIPS FPS Financial Appendix Caraustar integration generates network opportunities Revenue Internalization Network expansion of material optimization • Cross-selling: • Multiple categories: • Transport: backhauls and lane − Paper mill cores − Fiber – OCC combinations − Transit protection
Slide 37: Key Takeaways
Overview PPS RIPS FPS Financial Appendix Key Takeaways 1 Best in class, differentiated customer service orientation 2 Expanded, integrated national network 3 Evolving to meet market needs and stand to benefit from sustainable packaging trends 4 Multiple avenues for profitable growth 5 Disciplined an
Slide 38: Question & Answer Session
Question & Answer Session 1 June 26, 2019 – P.38
Slide 39: Rigid Industrial Packaging & Services (RIPS)
Rigid Industrial Packaging & Services (RIPS) Ole Rosgaard Senior Vice President and Group President June 26, 2019 – P.39
Slide 40: Investor Day goals
Overview PPS RIPS FPS Financial Appendix Investor Day goals • Review RIPS diversified, global portfolio • Highlight actions to enhance margins • Review ongoing portfolio optimization ‒ Intermediate bulk container (IBC) expansion ‒ IBC reconditioning June 26, 2019 – P.40
Slide 41: Broad product and services capability
Overview PPS RIPS FPS Financial Appendix Broad product and services capability Steel Fibre Closures Plastic #1 #1 #1 #2 IBC Earth Minded Filling #3 RIPS is the most comprehensive customer solutions provider in the industry Note: Ranking denotes standing in global market. Based on company estimates.
Slide 42: Highlights and differentiation
Overview PPS RIPS FPS Financial Appendix Highlights and differentiation 2018 Financials ($M) Highlights and Capabilities Differentiation Revenue $2,623.6 • Extensive global expertise and • Industry’s most comprehensive operational footprint product line offering Adj. EBITDA $273.4 • Large product sh
Slide 43: Customer service improving, but not at target
Overview PPS RIPS FPS Financial Appendix Customer service improving, but not at target Customer Satisfaction Index (CSI) Examples of customer needs addressed 100 • Improving response time and ease of accommodating customer quality assurance audits 90 • Improving response time for quotes, order and s
Slide 44: External market dynamics review
Overview PPS RIPS FPS Financial Appendix External market dynamics review W. Europe E. Europe •Export and •Industrial •Ongoing •Expand trade customer strength first mover related shift to across advantage headwinds plastic most end in growing in BeNeLux offers an markets economies attractive United S
Slide 45: Ongoing efforts to enhance margins
Overview PPS RIPS FPS Financial Appendix Ongoing efforts to enhance margins 1 Price adjustment mechanisms (PAM) refreshed 2 New service enhancements deployed 3 Robust business planning and supply chain fully ingrained Pursuing marginal gains across the business to enhance profitability June 26, 2019
Slide 46: Growing IBC capacity in response to customer needs
Overview PPS RIPS FPS Financial Appendix Growing IBC capacity in response to customer needs Intermediate Bulk Container CAGRs1 IBC Highlights Industry growth rates vs. Greif global growth 10% • IBCs are the fastest growing industrial packaging 9% substrate globally 8% • Greif outpacing industry IBC
Slide 47: Expanding IBC reconditioning for sustainable solutions
Overview PPS RIPS FPS Financial Appendix Expanding IBC reconditioning for sustainable solutions Reconditioning overview Greif today Greif future state • Benefits to customers: • Operate services to facilitate • Closed loop network in place in collection and reconditioning globally regional hubs in t
Slide 48: Expanding IBC reconditioning capability with Tholu
Overview PPS RIPS FPS Financial Appendix Expanding IBC reconditioning capability with Tholu Tholu highlights • Netherlands based market leader in selling new, rebottled and reconditioned products • Serves key BeNeLux and German markets • Provides immediate scale and execution knowledge in two of Gre
Slide 49: Key Takeaways
Overview PPS RIPS FPS Financial Appendix Key Takeaways 1 Industry’s most robust product offering and geographic footprint 2 Operating well in a dynamic environment through sharp focus on controllable areas 3 Continuously pursuing marginal gains to enhance margins 4 Advancing “Pivot to IBC” initiativ
Slide 50: Flexible Products & Services (FPS)
Flexible Products & Services (FPS) Hari Kumar Vice President and Division President June 26, 2019 – P.50
Slide 51: Investor Day goals
Overview PPS RIPS FPS Financial Appendix Investor Day goals • Review FPS’ extensive portfolio • Highlight margin enhancement opportunities and preparations for profitable growth June 26, 2019 – P.51
Slide 52: Global market leader with superior capabilities
Overview PPS RIPS FPS Financial Appendix Global market leader with superior capabilities 1&2 loop bag 4 loop bag Reconditioning Container liners 1-Loop 2-Loop #1 #1 #1 North America FPS is the largest FIBC producer in the world offering the most comprehensive product and services Note: Ranking denot
Slide 53: Highlights and differentiation
Overview PPS RIPS FPS Financial Appendix Highlights and differentiation 2018 Financials ($M) Highlights and Capabilities Differentiation Revenue $324.2 • Leading position in highly • Exceptional technical capabilities fragmented market and differentiated customer service Adj. EBITDA $25.6 • On track
Slide 54: Significant improvement in customer service
Overview PPS RIPS FPS Financial Appendix Significant improvement in customer service Customer Satisfaction Index (CSI) Examples of customer needs addressed 100 • Enhanced communication and processes with emphasis on customer forecast 90 • Increased semi-finished materials on hand to enhance customer
Slide 55: Significantly improved all aspects of the business
Overview PPS RIPS FPS Financial Appendix Significantly improved all aspects of the business Medical Case Rate Net Sales ($M) Adj. EBITDA Evolution ($M) 0.75 $350 $30 $20 0.50 $300 $10 0.25 $250 $0 FY15 FY16 FY17 FY18 $10 $200 0.00 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 $20 North America FPS has bee
Slide 56: Key Takeaways
Overview PPS RIPS FPS Financial Appendix Key Takeaways 1 Successfully improved business; re-earned the right to grow 2 Strengthening product leading position across global network 3 Leveraging high colleague engagement to drive superior customer service 4 Developing comprehensive profitable growth s
Slide 57: Financial Overview
Financial Overview Larry Hilsheimer Executive Vice President & CFO June 26, 2019 – P.57
Slide 58: Finance: Investor Day goals
Overview PPS RIPS FPS Financial Appendix Finance: Investor Day goals • Review financial performance • Discuss Caraustar synergy status • Confirm capital allocation priorities • Discuss how Greif is better positioned to weather a potential recession • Share new fiscal 2022 financial commitments June
Slide 59: Significant improvement in financial performance
Overview PPS RIPS FPS Financial Appendix Significant improvement in financial performance Adjusted EBITDA ($M) $700 $650 $600 $550 14.2% $500 Caraustar 6.2% Greif $450 $400 $350 $300 FY15 FY16 FY17 FY18 FY19E CAGR CAGR With Caraustar Without Caraustar ‘15-’19 ‘15-’19 Step change in performance since
Slide 60: Bolstering credibility through financial performance
Overview PPS RIPS FPS Financial Appendix Bolstering credibility through financial performance Adjusted Class A Earnings Per Share: guidance provided versus actual results Transformation $4.00 started June of 2015 $3.50 $3.00 $2.50 $2.00 $1.50 Q2 Q3 ACT Beg Q1 Q2 Q3 ACT Beg Q1 Q2 Q3 ACT Beg Q1 Q2 Q3
Slide 61: Disconnect between improved performance and valuation
Overview PPS RIPS FPS Financial Appendix Disconnect between improved performance and valuation Net Sales ($ Millions) Gross Profit ($ Millions) $5,000 $60 Net Sales $1,100 Gross Profit $60 Average Stock Price Avg. stock price $4,600 $55 $1,000 Average Stock Price Avg. stock price $55 $4,200 $50 $900
Slide 62: Disconnect between improved performance and valuation
Overview PPS RIPS FPS Financial Appendix Disconnect between improved performance and valuation Forward price to earnings Forward EV/EBITDA 2019 Free cash flow yield Aptargroup Inc Ball Corp Graphic Packaging Holding Co Ball Corp Aptargroup Inc International Paper Co Amcor PLC Amcor PLC Greif Sonoco
Slide 63: Caraustar integration on schedule
Overview PPS RIPS FPS Financial Appendix Caraustar integration on schedule Key personnel Monthly operational and retained and financial performance leadership management Caraustar Greif Business System team named initiated migrated to ERP continues to optimize existing business Q1 Q2 Q3 Q4 Q1 Q2 Bey
Slide 64: Caraustar synergies tracking ahead of plan
Overview PPS RIPS FPS Financial Appendix Caraustar synergies tracking ahead of plan Anticipated Caraustar acquisition synergies $M • 200+ identified synergy opportunities still being quantified $60 $50 • Upcoming incremental opportunities $40 ‒ Ongoing back office optimization $30 $20 ‒ Internalizat
Slide 65: Clear capital allocation priorities in place
Overview PPS RIPS FPS Financial Appendix Clear capital allocation priorities in place Anticipated capital expenditure 2019-2022 ($M) Capital priorities 1 Fund maintenance capital 2 De-leverage the balance sheet 3 Maintain annual dividend and periodically review 4 Pursue strategic growth opportunitie
Slide 66: Compelling dividend yield
Overview PPS RIPS FPS Financial Appendix Compelling dividend yield GEF vs peer companies & the broad market 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1 2 3 Peer Companies S&P 500 Greif Greif offers a compelling dividend yield that outpaces peer companies and the market 1 Represents average trailing twelve month
Slide 67: Better positioned to weather a potential recession
Overview PPS RIPS FPS Financial Appendix Better positioned to weather a potential recession Greif today vs 10 years ago Industrial business with better mix of recession-resistant end markets (e.g. food, pharma, ag chem) “Pivot to plastics” initiative 1 in RIPS (IBC volumes +16.8% since 2017) I
Slide 68: New fiscal 2022 financial commitments in place
Overview PPS RIPS FPS Financial Appendix New fiscal 2022 financial commitments in place FY’22 Adj. FY’22 Adj. Free $M Path to 2022 Adjusted EBITDA ($M) EBITDA Cash Flow RIPS $288 – $315 $1,000 $820 - $900 PPS $490 – $530 $800 FPS $30 – $40 $600 $503.2 Land $12 – $15 Total $400 $820 – $900 $410 – $45
Slide 69: Future EBITDA indicates potential for significant stock price appreciation
Overview PPS RIPS FPS Financial Appendix Future EBITDA indicates potential for significant stock price appreciation Historic GEF EV/EBITDA multiple 6.5 - 7.5x 2022 EBITDA commitment $820 - $900M @ 6.5x @ 7.5x 2022 EBITDA commitment range $820M $900M Yields: Implied Enterprise Value $5,330M $6,750M L
Slide 70: EBITDA growth and execution leads to enhanced valuation
Overview PPS RIPS FPS Financial Appendix EBITDA growth and execution leads to enhanced valuation Actions Greif is taking Drivers for Premium Multiples Prudent capital allocation and continuous Demonstrated focus on ROIC improvement – 540BP operational improvement improvement in ROIC between FY15 a
Slide 71: Closing Comments
Closing Comments Pete Watson President & Chief Executive Officer June 26, 2019 – P.71
Slide 72: Why invest in Greif?
Overview PPS RIPS FPS Financial Appendix Why invest in Greif? 1 Today, attractive valuation, compelling dividend and opportunity for free cash flow expansion 2 Robust and diverse product portfolio with exposure to a variety of end markets 3 Numerous avenues for incremental low-risk growth and margin
Slide 73: Question & Answer Session
Question & Answer Session 2 June 26, 2019 – P.73
Slide 74: Appendix
GREIF PACKAGING SUCCESS TOGETHER™ Appendix
Slide 75: Colleague engagement impacts our bottom line
Overview PPS RIPS FPS Financial Appendix Colleague engagement impacts our bottom line Top vs. Bottom quartile engagement comparison at Greif 106% 97% 43% 19% -131% Labor Costs Customer Satisfaction Operating Profit Before Operating Working Profit Index Special Items Captial Productivity Customer Met
Slide 76: Pre-synergy industry transaction multiples
Overview PPS RIPS FPS Financial Appendix Pre-synergy industry transaction multiples 13.1x Median: 8.6x 11.2x 10.8x 10.0x 9.8x 9.6x 8.2x 8.6x 8.2x 8.7x 8.6x 7.4x 6.7x 6.9x 6.0x 6.1x Acquirer Target Date Oct-2018 announced Deal Size $1.8bn Source: company filings and press releases June 26, 2019 – P.7
Slide 77: Disciplined and structured Caraustar integration
Overview PPS RIPS FPS Financial Appendix Disciplined and structured Caraustar integration Structure and Governance Model • Robust cross functional integration team established in advance of deal closure ‒ Leverages expertise and talent within both Executive Steering Committee companies ‒ Dedicated 3
Slide 78: Ongoing efforts to enhance margins
Overview PPS RIPS FPS Financial Appendix Ongoing efforts to enhance margins Price adjustment • Current: PAMs cover ~71% of steel drum production and ~63% plastic drum production mechanism (PAM) • Future: Contract “golden rules” deployed; opener provisions to recover non-raw material inflation refres
Slide 79: Global market leader with superior capabilities
Overview PPS RIPS FPS Financial Appendix Global market leader with superior capabilities 1&2 loop bag 4 loop bag Reconditioning Container liners 1-Loop 2-Loop #1 #1 #1 • Cost effective, optimal efficiency • Utilized in high value, high purity • Small but value add service that • Designed to convert
Slide 80: Net sales bridge: FY15 to FY18
Overview PPS RIPS FPS Financial Appendix Net sales bridge: FY15 to FY18 $M $4,500 $4,000 ~$950 $3,500 ~$100 $3,000 ~$400 ~$400 $2,500 $2,000 $1,500 $1,000 $500 $0 FY 2015 Closures/ F/x Profitable revenue Organic FY2018 net sales divestitures headwind transferred to other growth net sales plants Sale
Slide 81: Back office optimization will help to improve results
Overview PPS RIPS FPS Financial Appendix Back office optimization will help to improve results Adjusted tax rate evolution ERP: # of systems and annual capex ($M) 35% $16 56 # of ERP $14 systems 33% $12 ERP CapEx 31% $10 $8 29% $6 27% $4 $2 1 25% $0 FY17 FY18 FY19E Future State 2016 2017 2018 2019 2
Slide 82: Land: highlights and differentiation
Overview PPS RIPS FPS Financial Appendix Land: highlights and differentiation Highlights Differentiation • ~250,000 acres in Louisiana, Mississippi, and Alabama • Well-positioned for future with solar applications • Steady cash flows with minimal capital reinvestment • Emphasis on generating non-tim
Slide 83: Successful with sustainability efforts
Overview PPS RIPS FPS Financial Appendix Successful with sustainability efforts 35 Reduced our CO2 emissions Reduced our CO2 Reduced its per unit emissions per unit Received an Reconditioned biochemical Grieffacilities Greif facilities are zero are waste zero to waste production by production by Rec
Slide 84: Fiscal 2022 financial commitments assumptions
Overview PPS RIPS FPS Financial Appendix Fiscal 2022 financial commitments assumptions • Net sales will be approximately $5.5B in Fiscal 2022 as a result of strategic growth CapEx, Caraustar inclusion and organic growth • Raw material costs assumed flat against current indices in the markets in whic
Slide 85: Debt maturity profile
Overview PPS RIPS FPS Financial Appendix Debt maturity profile $M $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 7.375% Senior Notes - 2021 US Revolver - FY 2024 Asset Securitization Other 6.50% Senior Notes - 2027 Term Loan A-2 Term Loan A-1 June 26,
Slide 86: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Operating Profit to Adjusted EBITDA $Millions Twelve months ended October 31, (in millions) 2018 2017 2016 2015 Operating profit 370.5 299.5 225.6 192.8 Less: Non-cash pension settlement charge 1.3 27.1 - - L
Slide 87: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Segmented Operating Profit to Adjusted EBITDA $ Millions Note: EBITDA is often defined as net income, plus interest expense, net, plus tax expense, plus depreciation, depletion and amortization. However, beca
Slide 88: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Tax Rate to Adjusted Tax Rate June 26, 2019 – P.88
Slide 89: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Operating Profit to Adjusted EBITDA $Millions June 26, 2019 – P.89
Slide 90: GAAP to Non-GAAP
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Net Income and Adjusted Class A Earnings Per Share $Millions and $/sh Adjusted Earnings and EPS June 26, 2019 – P.90
Slide 91: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Free Cash Flow to Adjusted Free Cash Flow June 26, 2019 – P.91
Slide 92: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of FPS Operating Profit to Adjusted EBITDA $Millions June 26, 2019 – P.92
Slide 93: GAAP to Non-GAAP Reconciliation
Overview PPS RIPS FPS Financial Appendix GAAP to Non-GAAP Reconciliation: Reconciliation of Net Sales to Net Sales Excluding the Impact of Currency Translation $Millions June 26, 2019 – P.93
Slide 94: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation: Projected 2019 Adjusted Free Cash Flow guidance June 26, 2019 – P.94
Slide 95: Management biographies
Overview PPS RIPS FPS Financial Appendix Management biographies Pete Watson has served as President and Chief Executive Officer of Greif Inc., since November 1, 2015. Pete previously was Chief Operating Officer for Greif. As CEO, Pete’s vision for Greif is… “in industrial packaging, be the best perf
Slide 96: Management biographies
Overview PPS RIPS FPS Financial Appendix Management biographies Doug Lingrel was named Vice President and Chief Administrative Officer in June 2016. In this capacity he oversees the Greif Business System partnering with the business to build capabilities and drive performance. In addition he leads t
Slide 97: Management biographies
Overview PPS RIPS FPS Financial Appendix Management biographies Michael Cronin joined Greif in May 2015 as Senior Vice President and Group President, Rigid Industrial Packaging & Services – Europe, Middle East, and Africa. In January 2016, he assumed additional responsibility for Rigid Industrial Pa